Cris R in Vermillion Parish, Louisiana: Big Payoff for Conventional Explorers

摘要

Modern technology, particularly enhanced seismic imaging, combined with high risk tolerance, have proved up substantial reserve additions and high internal rate of return (IRRs) in the Cristellaria 'R' formation in Vermillion Parish, Louisiana. Operated by PetroQuest Energy, Inc., the La Cantera and Thunder Bayou discoveries have reignited enthusiasm for Conventional onshore opportunities. La Cantera, immediately southwest of Tigre Lagoon Field, was discovered in March 2012. During the first half of 2014, three wells produced at an average rate of 106 million cubic feet of natural gas per day and 1900 barrels of oil per day, and to date over 70 billion cubic feet of gas and 1.3 million barrels of oil has been produced. All three wells paid out in less than one year, and finding and development costs are expected to be less than $1.00 per thousand cubic feet of gas equivalent. Structurally, La Cantera is a high-relief downthrown three-way closure. The first two wells (Thibodeaux No. 1 and Broussard No. 2) on this tight feature encountered a combined 545 feet of net pay in the Cris R-1 and Cris R-2A, B, and C sandstones. Even though these reservoirs are at depths exceeding 18,000 feet, primary porosities range between 23% and 28%, with permeabilities averaging 400 millidarcys. The Thunder Bayou project, drilled two miles north of La Cantera, was the second substantial Cris R discovery in Vermillion Parish, Louisiana. Petroquest Energy completed the 21,500 feet Hulin No. 1 well in late 2014. The Hulin No. 1 well logged approximately 490 gross feet of high quality pay in the Cris R2 objective on a very similar structure to that of La Cantera. It is anticipated that gross daily rates could be 25,000 to 30,000 thousand of gas, plus associated oil and natural gas liquids. Thunder Bayou's land location will allow for production to be established quickly, with significantly lower facilities costs as compared to La Cantera' wet marshland location. Multiple delineation wells are forecast for both 2015 and 2016. Even after 114 years and 220,000 wells, it is clear that the great oil and gas state of Louisiana is quite far from depleting its vast mineral resources. Discoveries such as La Cantera and Thunder Bayou have once again proven that Louisiana is still alive and well for explorers willing to take the risk.