Sunday, August 10, 2008

Barnett Shale

Barnett Shale is deeply fractured, with fissures that tended to be sealed by calcium carbonate. The field went undiscovered until Mitchell Energy experimented with employing large gel fracture methods to open the wells to natural gas. Barnett Shale is a massive natural gas deposit that occurs naturally deep under approximately seven counties in North Central Texas and including northeast Tarrant County. The Barnett field stretches from Dallas west approximately 5,000 square miles and produces about 1.2 billion cubic feet of natural gas a day according to some industry reports.


Barnett Shale Gas


Gas saturation seems constant across the region, so it is tempting to invoke increased natural fracturing in these areas as the explanation. Gas companies are meeting with neighborhood associations to better explain the complexities of drilling in an urban setting. Residents are telling the companies what they think. Gas shale well productivity varies widely by basin, due to variations in the natural fracturing, richness of the shale, net thickness, and initial rates. The major change has been in well completion and operating methods, which have led to increase per well reserves.


Gas may be further categorized as in-situ generated-reservoired or as migrated gas. Fundamental geochemical characteristics of the petroleum system and type of gas must be determined to map favorable production fairways (sweet spots).


Barnett Shale Drilling


Drilling likely will shift from the standard vertical wells to more expensive horizontal wells, requiring more manpower, equipment, expertise and time. Predictions are it will take another year or so before knowing if it’s a viable commercial opportunity. Drilling rigs are already located on the Dallas/Fort Worth airport, and inside the Fort Worth city limits, and are headed toward downtown.


Barnett Shale Mineral Rights


Mineral rights are treated as real property and can be sold or leased. Mineral rights can be severed from the surface estate. Mineralogies indicated below were determined by EDS. Red arrows indicate small Ca-plagioclase crystals of angular shape. Mineral rights could belong to the current (surface rights) owner. Or, the mineral rights could have been “retained” by the original owner of the property from perhaps a hundred years ago and passed to heirs.


Barnett Shale Oil


Oil and gas investors can realize fast ROI’s. There is currently a huge Hunton Lime re-completion, de-watering play revitalization plan coming right through our back yard and we have at least 6-8 existing “cased Holes” ready for re- completion. Oil has also been found in smaller but commercially viable quantities.