Canaccord Genuity on Energy, Oil & Gas E&P: Tuscaloosa Takeaways

June 27, 2012 9:43 AM EDT
Canaccord Genuity on Energy, Oil & Gas E&P: Tuscaloosa takeaways

Analyst, John Gerdes, had a conference call with Kirk Barrell, the founder of Amelia Resources (private). The company owns approx. 120k acres in the Tuscaloosa Marine Shale.

On the call, Mr. Barrell said, that from a geologic perspective, the Tuscaloosa trend is attractive.

Conclusions: The core of the play appears to be to the east. The Tuscaloosa has a total organic content of 1-4%, similar to other prominent resource plays. Clay concerns are overblown as the lower 150’ zone of the Tuscaloosa has significantly lower clay content than the upper portion. The lower part of the Tuscaloosa also has a greater quartz content, which should offer greater storage capacity and conduciveness to hydraulic fracturing.

"We believe costs should trend lower over time from $15+ million currently toward
~$13 million. Additionally, our analysis shows recent tests are economic at
current costs."

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