Is MWE's entry into Eagleford location with Newfield studied or fortuitous? Looks like Buda going to to big in Zavala/Dimmit
Even though Newfield/MWE agreement is initially on Maverick, Buda is there and could be big-see Contango on bry iv board.
"Newfield Exploration (NFX) owns a large portion of the leases on the western half of the Zavala and Dimmit County line right on top of one of the legs of the Zavala Syncline."
"Excitement has been building in the oil patch in South Texas surrounding the recent Buda oil discovery by private oil company Dan A. Hughes. They discovered major natural fractures in the Buda oil formation along the Zavala and Dimmit County line in Texas. The Hughes Heitz 302 3H well has produced almost 300,000 barrels of light sweet crude oil in a little over a year and is still producing. Unlike Eagle Ford wells, Buda wells do not require fracture stimulation and the wells cost less than $4 million to drill and complete. In addition, the Heitz 3H well is producing fairly large quantities of very liquids rich natural gas."
"Key information on this particular Buda sweet-spot is revealed by Dan A. Hughes Oil Company's filing with the Texas Railroad Commission at a hearing to observe field rules for the Buda formation in Zavala and Frio Counties in Texas. The hearing was observed by Black Brush O&G, LLC. In the filing, Dan A. Hughes reveals that "in support of its position it submitted a structural map for the Buda formation for the area surrounding its Heitz lease in Zavala County, Texas. The structural map indicates the Buda formation is contiguous throughout the region. It also shows that the Buda formation is thicker to the west of its lease."
"The real secret to unveiling Buda sweet-spots is unlocked in the hearing when Dan A. Hughes Company testifies that "faulting is present near the eastern boundary of the Zavala and Dimmit County line. Hughes seeks to drill wells near fault lines which create natural fractures due to faulting." Basically, the reason natural fractures occur in the Buda oil formation is because ancient earthquakes split the rocks..."
Well,hey,let's answer your Q with another Q: "Was MWE's entry into the Marcellus studied or fortuitous?" One thing is for sure; Aubrey McClendon,former CEO of Chesapeake may not be the most ethical player out t here but he sure is one of the smartest. And by hitching his American Energy Utica group to MarkWest in the Utica you know he wants to score $Billions like Antero just did working with MarkWest..and you want to guess how much Range has benefitted working with MWE? And for me personally I have benefitted well by being with MWE,too!! I would love to see MWE double or triple from this point!!!