transforming nse, page-26

Thanks cmonassuie.

I have had a quick look at it. It looks a little bit old (oct.2012) though. As you know even the 6 month's technology is being old in this shale business. The pace of improvement in technology and extracting the oil and gas is increasing in an incredible speed.

Here is an example; Marathon Oil has increased its total resource estimate for the Eagle Ford from 469 million barrels initially to ~1 billion boe today.. This is mainly because of the imporvement in drilling technology.

When it comes to Pearsall shale; I made a little bit of research and made some maps for my own use. (i will keep doing a lot more). I have initially identified the "Four Corners" sweet spot as shown on the map below. It is the area called Atascosa Trough. I think NSE's Alright permit may be in the sweet spot of the Four Corners while Peelers Ranch may not. (Unfortunately Marathon drilled the Pearsall hole on Peeler Ranch 3H pilot well)

Anyone who wants to learn more about Pearsall shale can read this article as well;

Excitement grows for another South Texas Pearsall shale

It says;
"I would say new leasing south of San Antonio is all Pearsall,...There’s just not a lot of acreage trading hands. There’s not enough open acreage.”

This is where NSE's EF acreage is. The right spot I guess.

"A lot of people leased all depths, and there’s a lot of Pearsall that’s sitting there because of this very normal business practice: If I’m an oil company (and) I’m making money in the Eagle Ford, I’m going to keep spending money in the Eagle Ford,” Roth said.

That said, some Pearsall wells have been making around 600 barrels a day, a result that Roth noted companies will take “all day long.”

“It seems that some significant production will come from Pearsall,” he said.

The Houston-based Cabot Oil & Gas Corp. has 43 producing Eagle Ford wells, but plans to drill 15 Pearsall wells this year.

In an earnings call last week with analysts, Cabot executives said that the 30-day average production rate for its six Pearsall wells was around 600 barrels of oil equivalent daily, which includes a mix of crude oil and natural gas liquids such as propane and butane. About half of those barrels were crude oil.

Dan Dinges, chairman, CEO and president of Cabot, said during the call, “The Pearsall, it’s still a young play and remains a science project for us.”

Dinges stopped short of giving a range for how much oil it might ultimately recover from its 71,000 Pearsall Shale acres, located in the “Four Corners” area where Frio, Atascosa, La Salle and McMullen counties meet.

Several other companies are also looking at the Pearsall. Magnum Hunter and Marathon Oil Corp. are drilling a Pearsall well in Atascosa County. Goodrich Petroleum Corp. has said it’s monitoring Pearsall wells and has tentative plans to drill a well there later this year. Sanchez Energy Corp. has said it is mapping the Pearsall and thinks a large portion of its Eagle Ford acreage could have Pearsall potential.

But the costs of a Pearsall well — around $10 million by Cabot’s estimates (which include the cost of science) — and the fact that companies have to pass through the Eagle Ford to get there, mean that companies drilling the Pearsall must really want to. Companies must drill about 10,000 feet down and then make a horizontal turn into the formation.

“They’re not a casual investment,” Williams of Hart Energy said. “In this particular area, early results are encouraging.”