OnG, thanks for the info. Is it accurate to say TGC is returning to this field with tech of today and that they wouldn't be doing that (spending $) if they didn't have some confidence in a positive outcome?
Honestly I can't say it is accurate that they are returning using today's technology because I don't know how they plan on drlg these wells. That being said I do believe that management is taking a calculated risk in proving up the shale potential near Swan Creek/existing pipeline. The upside of developing commercial production is strategic on a number of fronts. If successful they could choose to develop & book these reserves and build the company asset base or use this success to cash in on the acreage & pipeline & increase their KS holdings. Regardless I do concur that they have confidence in this venture & have done their homework.GL
Jeff Bailey was the first author of the study below presented at the American Association of Petroleum Engineers 34th annual meeting Sept 18-20, 2005 in Morgantown, WV. He probably knows as much about the possibilities of oil and gas in the area as anyone. By the way, the conference was billed as "Mountains of Opportunity."
A possible subsurface hydrothermal dolomite reservoir has recently been identified in the Swan Creek field, northeastern Tennessee. Swan Creek field is in a blind, faulted anticline located beneath the shallow-dipping Clinchport thrust wherein small-displacement duplex imbricates partly localize production. A structural low is superposed on the northwestern flank of an anticline that contains a pronounced increase in dolomite in the lower and middle Stones River (Black River) Group, but hydrocarbon production from surrounding wells is from the top of the Stones River (Carters Limestone). The structural low is evident in maps contoured from top of the Lebanon Limestone downward into the Knox Group, but is not present in younger horizons. Dolomitization probably occurred prior to Alleghanian folding and faulting, but deformation may have localized the hydrothermal zone and hydrocarbons, and did not breach and drain the reservoir. Production probably results from secondary enhanced porosity not cemented by late-stage, pre-Alleghanian fluid migration and mineralization. Trends in hydrothermal fluid migration related dolomite porosity have long been recognized in the zinc districts in Tennessee. For hydrothermal dolomite plays, drilling off structure may be better than drilling on structure. Locating this structure in Swan Creek was as a result of secondary target development, with the Knox Group the original primary target. Oil shows are widespread in Swan Creek in the Stones River and Nashville Groups, but most oil production here is from these dolomites. Wells associated with this hydrothermal event and proximity to their off-structure locations, and disproportionate high cumulative volumes, warrant special economic considerations and investigation.
Think those "economic considerations and investigation" are ready to bear results?