It’s a new decade, where will geology lead us? Or better yet, where is your next prospect coming from?

Wildcatters will always be around, few and far in between, but still around. Investors want higher success rates and lower risk and that is not the wildcatting motto.

Will it be the Eagle Shale? The Eagle Ford Shale looks very prospective and is helping rejuvenate the South Texas Oil and Gas activity. I thought that the Eagle Ford was a “has been,” if you are a player, you are already playing. But I’m seeing more and more interest from new players. They like the oil component and are waiting around to determine the actual economics, only time will tell.

Will it be deep Gulf of Mexico sandstones? Last month’s speaker gave us plenty of reason to look in the Deep Waters of the Gulf of Mexico. The wells are very deep, super expensive and too risky.

Will it be geothermal wells? I hear an awful lot about the opportunity for success in South Texas. We know we have high temperature and high pressure rocks shallow, but $4 gas will kill this idea.

Will it be exploiting old fields? Conventional thinking will tail off, but the romance of success will keep the “little guys” drilling.

Will it be going horizontal on everything? Well it sounds good, but that’s not the answer. If you can make a good vertical well why take the risk of drilling a horizontal well? Don’t forget the science; you’ll need to know the directions of the fractures.

Will Mexico ever open up? There is a lot of potential there and some American companies are there now. At the end of the day I would rather deal in dollars and not in pesos in a foreign country.

May you have a Prosperous New Year,

Juan N. Cabasos – CCGS President 2009 – 2010