Also from the Wolfberry Post on Devon
Mar 13, 2013, 2:02pm CDT Updated: Mar 13, 2013, 2:44pm CDT
Cline Shale could be the next oil play
Activity is picking up in the Cline Shale.
The Cline Shale could be the next big oil play in West Texas and several companies are investing millions in exploration there.
The shale stretches over 10 counties between Midland-Odessa, Abilene and San Angelo and has drawn interest from other companies such as Fort Worth-based Range Resources (NYSE: RRC) and Devon Energy Corp. (NYSE: DVN).
Today, I spoke with a Devon official who says the Oklahoma City-based company is excited about what they’ve found with the first six wells.
The company plans to station four drilling rigs in the Cline Shale this year with plans for 30 more wells, said Tim Hartley, a Devon spokesman. Devon opened a new office in San Angelo in anticipation of the growth in the area. It’s still a work in progress as Devon experiments with different depths and lateral lengths to find the best way to drill, Hartley said.
"We continue to make progress in understanding that reservoir," he said. "We’re refining our well completion techniques. We are confident at Devon that this is going to mature into an economic play where we’ll find the right way to do it and have repeated results on numerous wells."
Last year, Devon partnered with Sumitomo Corp., a Japanese firm that invested $1.4 billion in the Cline and Midland-Wolfcamp Shale. In exchange, Sumitomo gets 30 percent of Devon’s interest in the project once oil is produced.
"It’s a great way for a Japanese company like that to get involved in a promising investment like the Cline Shale," he said.
Just saw this from the Dallas Business Journal, "Cline Shale Could be the Next Oil Play"The article says, “Today, I spoke with a Devon official who says the Oklahoma City-based company is excited about what they’ve found with the first six wells.” This is the first comment that we’ve seen that says Devon is excited about their Cline results. This is exciting for Lynden Energy Corp. as Devon has several Cline wells along the northern border of Lynden's Mitchell Ranch project. In fact, their Schlarlarch M#1H well is only 480 feet from their northern border!