Double Bottom?Limberger #9578977 was early. Now may be a low risk entry point, but with a tight stop, (as it may recycle lower), if one wants to take a risk. Palo Duro probably isn't like the Barnett Shale "Organic geochemistry of Palo Duro Basin source rocks indicates that the basin probably was not an area of major hydrocarbon generation. In some intervals, however, possible source rocks do exist. Source rock quality, assessed on total organic carbon content, is fair to good in some stratigraphic intervals. Lipid-rich kerogen occurs in deep-basin shale facies. Paleotemperature data-kerogen color and vitrinite reflectance--indicate that temperatures in the basin have always been relatively cool. Temperatures up to 62 degree C (145F) were reached in the source beds, an indication that only lipid-rich kerogen would have reached the early stages of hydrocarbon generation. However, in source beds where relatively high values of TOC coincide with abundant lipid-rich kerogen, hydrocarbonds may have been generated. Basinal shales in the Pennsylvanian and Wolfcapian section are the most probable source rocks in the Palo Duro Basin" Dutton, "Petroleum Source Rock Potential and Thermal Maturity, Palo Duro Basin, Texas, Geo Circular 80-10, Bureau of Economic Geology, UT Austin, 1980, page 29.
"From the standpoint of oil and gas production, the Palo Duro Basin is an enigma. Except for fields associated with bounding uplifts, there is not current commerical production in the basin, depite the drilling of about 1,000 exploration test wells." Fisher, "Stratigraphy and Petroleum Potential of Pre-Pennsylvanian Rocks, Palo Duro Basin, Texas Panhandle", Bureau of Economic Geology, UT Austin, 1985, pg.2 "The Palo Duro Basin as a whole does not appear to have the same potential for hydrocarbon accumulation as its small neighbor to the east, the Hardeman Basin. Nevertheless, hydrocarbons have been generated and have migrated through pre-Pennsylvanian rocks in the Palo Duro Basin, and at least small accumulations of hydrocarbons probably remain. Discovery of these reservoirs will require a synthesis of seismic data, subsurface maps, and geochemical analyses", id at pg. 70. These studies provide faint encouragement to thoughts of a lot of oil and gas on the 265000 acres BNK leased. The key phrase is probably "small accumulations". Personally, I'm passing on this possible entry point.