permian basin waking up.

After a weekend of endless research,I think 2012 will be the year the permian basin truly shows its potential.

This play has so much potential over so many horizons,it is mind boggling.

From the clearfork,thru the spraberry,the dean,wolfcamp(poss A,B and C),cline,strawn,atoka,mississipian,woodford and possibly even the deeper ellenburger.

Now these formations occur in the midland basin and some in other formations(central basin platform,delaware basin).Not all horizons occur in the same counties.

There is already a significant programme in the southern midland basin,drilling the horozontal wolfcamp.In some areas the wolfcamp is so thick that 3 separate zones have been indentified all with horozontal drilling potential.

Horozontal mississipian wells are being drilled in the permian basin as well as the cline shale.

In fact Callon Petroleum have taken a significant interest in Borden county targeting the cline shale.Callon are running 3d in the first half and plan to drill 3 horozontal wells before years end.They say the cline shale is thicker here and has higher porosity(ability for the rock to hold hydrocarbons.)They estimate $6.5m well costs with ips of 300-700bls/d,with eurs of 350-600k boe recovered on 100 acre spacing with 5000ft laterals(80% liquids.)

Now this could be really big deal as the big star acreage meets Borden county in the south east corner.

Now many unconventional resource plays have more than one potential productive horizon(Bakken,three forks)(eagleford, austin chalks) to name a couple.

However never have I seen so many potentially productive zones for horozontal drilling in one area.(there could be 3-6 zones in one area.

Into the future verticle wells be be able to have multiple horizontals drilled in different plays.This would reduce costs and make each separate zone more economic.

To have multiple drilling opportunities on the same acre of land can only lead to one conclusion.Significantly enhanced production per acre and higher prices per acre.

Now is the time to go for broke and accumulate as much land as possible because lease prices will be an entry deterrent into the future.

All the best.