“Salt domes, unlike shale, has been an economic play in Texas for at least 50 years. This has nothing to do with the evolution of technology within the energy industry and if you think it does then you have no idea.”
Salt domes have been economic in Texas on and off for 111 years, and technology has evolved a bit. I would rather be using a modern top drive rig over a cable tool rig, a modern suite of logging tools over chewing the well cuttings to taste for oil, and using an MWD tool for directional drilling into the sweet spot of an overhang rather than Uncle Jethro’s creekology.
“so the previous operators missed almost 200 MMBO and didnt think it worthy of drilling. “
They might have held onto the leases and kept trying for those extra 200 million barrels if the price was $105/bbl instead of sub $20.
FDM Price at posting:
$1.21 Sentiment: Buy Disclosure: Held
