Tuscaloosa shale in West Feliciana
A handful of companies are leasing hundreds of thousands of acres across the Baton Rouge area and central Louisiana, home to a geological formation that LSU researchers say could produce 7 billion barrels of oil.
If theyve leased one acre, theyve leased 500,000... said Dan Collins, a landman who represents property owners of around 100,000 acres in an eight-parish area.
The leasing firms are locking up mineral rights typically at $100 to $150 per acre on property from Avoyelles Parish to Washington Parish, Collins said. The properties lie in the Tuscaloosa Marine Shale, a 5,900-square-mile area that stretches from Texas through the center of Louisiana into eastern Mississippi.
Its difficult to know how much property is under contract because the leases havent been recorded for the most part, Collins said, and the leasing companies are still acquiring rights to more land.
Theyve probably got 50 landmen in the field, Collins said.
Leslie Ligon, a Clinton attorney, said in the last four to five months, his office has processed 130 - 150 leases for landowners.
West Monroe-based DJ Energy has opened a St. Francisville office, and crew leader Zane Daniels confirmed that the company is leasing in the Tuscaloosa Marine Shale.
If you tell a geologist that there is potentially 7 billion barrels recoverable somebodys going to figure a way to get it out, Collins said.
If that happens, the shale could change the face of communities in East and West Feliciana, St. Helena and Tangipahoa parishes, Collins said. The shale could create an economic boom.
The surge may be close.
Surveying work, one of the final steps before asking the state Office of Conservation for a drilling permit, is under way on the property of one of Ligons clients.
The leasing firms are offering $100 to $150 an acre now and a maximum royalty of 20 percent of production, Collins said.
In simple, plain English, thats ridiculously low, Collins said.
Leases in the Haynesville Shale the natural gas formation in northwest Louisiana started around $300 an acre and at the high point were running $20,000 an acre, Collins said. The royalties were up to 25 percent of the wells revenue.
However, Ligon said, he and many other landowners feel differently about pricing after years of no activity.
Were just glad to see someone take an interest here, Ligon said.
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#1 Feb 13, 2011
DRILL BABY DRILL!!!!
#2 Feb 14, 2011
“Danses avec des cocodrie”
Since: Jul 07
#4 Feb 19, 2011
I got the following in an email about two weeks ago.
About 6 months ago, the writer was watching a news program on oil and one of the Forbes Bros. was the guest. The host said to Forbes, "I am going to ask you a direct question and I would like a direct answer; how much oil does the U.S. have in the ground?"
Forbes did not miss a beat, he said, "more than all the Middle East put together."
Please read below.
The U. S. Geological Service issued a report in April 2008 that only scientists and oil men knew was coming, but man was it big. It was a revised report (hadn't been updated since 1995) on how much oil was in this area of the western 2/3 of North Dakota, western South Dakota, and extreme eastern Montana ..... check THIS out:
The Bakken is the largest domestic oil discovery since Alaska 's Prudhoe Bay , and has the potential to eliminate all American dependence on foreign oil. The Energy Information Administration (EIA) estimates it at 503 billion barrels. Even if just 10% of the oil is recoverable... at $107 a barrel, we're looking at a resource base worth more than $5...3 trillion.
"When I first briefed legislators on this, you could practically see their jaws hit the floor. They had no idea.." says Terry Johnson, the Montana Legislature's financial analyst.
"This sizable find is now the highest-producing onshore oil field found in the past 56 years," reportsThe Pittsburgh Post Gazette. It's a formation known as the Williston Basin , but is more commonly referred to as the 'Bakken.' It stretches from Northern Montana , through North Dakota and into Canada . For years, U. S. oil exploration has been considered a dead end. Even the 'Big Oil' companies gave up searching for major oil wells decades ago. However, a recent technological breakthrough has opened up the Bakken's massive reserves..... and we now have access of up to 500 billion barrels. And because this is light, sweet oil, those billions of barrels will cost Americans just $16 PER BARREL!
That's enough crude to fully fuel the American economy for 2041 years straight. And if THAT didn't throw you on the floor, then this next one should - because it's from 2006!
U.. S. Oil Discovery- Largest Reserve in the World
Stansberry Report Online - 4/20/2006
Hidden 1,000 feet beneath the surface of the Rocky Mountains lies the largest untapped oil reserve in the world. It is more than 2 TRILLION barrels. On August 8, 2005 President Bush mandated its extraction. In three and a half years of high oil prices none has been extracted. With this motherload of oil why are we still fighting over off-shore drilling?
They reported this stunning news: We have more oil inside our borders, than all the other proven reserves on earth.. Here are the official estimates:
- 8-times as much oil as Saudi Arabia
- 18-times as much oil as Iraq
- 21-times as much oil as Kuwait
- 22-times as much oil as Iran
- 500-times as much oil as Yemen
- and it's all right here in the United States.
HOW can this BE? HOW can we NOT BE extracting this? Because the environmentalists and others have blocked all efforts to help America become independent of foreign oil! Again, we are letting a small group of people dictate our lives and our economy.....WHY?
James Bartis, lead researcher with the study says we've got more oil in this very compact area than the entire Middle East -more than 2 TRILLION barrels untapped. That's more than all the proven oil reserves of crude oil in the world today, reports The Denver Post.
Don't think 'OPEC' will drop its price - even with this find? Think again! It's all about the competitive marketplace,- it has to.
Think OPEC just might be funding the environmentalists?
#5 Feb 20, 2011
Then surely you must still believe in Santa Claus. More oil in this compact area that the entire middle east? Sure. Whomever wrote this is almost as dumb as someone who would post it.
#6 Feb 20, 2011
"Somebody" sure did send you a wealth of false information. Common sense would indicate that your post is a bunch of BS. Check it out on Snoops.
“Time flies like an arrow...”
Since: Mar 07
"fruit flies like a banana"
#8 Feb 21, 2011
#9 Feb 21, 2011
The Zoot Thing has struck yet again.
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