Anyone got $10 billion lying around and want to get into the shale oil business? 

"E90M3" (e90m3) 05/30/2018 at 16:13 • Filed to: unnecessary company shopping with E90M3

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Some of you know I used to work in oil, as well as the fact that I used to be a frac field engineer. What you probably didn’t know is the client I did the most work for was BHP Billiton. I fracked their wells from October 2013 to September 2015, when my crew got dropped. I did do some other work for other clients, mainly Rosetta, now owned by Noble Energy, but for the most part it was BHP. As a result I spent a lot of time on a BHP location.

I haven’t been on a BHP location since September 2015 nor have I been at a frac site since April 2016, but I still somewhat follow the industry. !!!error: Indecipherable SUB-paragraph formatting!!! As a result, !!!error: Indecipherable SUB-paragraph formatting!!!  

Their liquid assets are actually pretty appealing with their acreage in the Permian Basin and the Black Hawk region of the Eagleford, where I used to work.

It will be interesting to see who bids and/or buys their acreage. I would almost bet that it gets broken up, I don’t think the Haynesville is as appealing as it once was.

So anyone want to lend me $10 billion so I can become an oil baron?

farscythe - makin da cawfee! > E90M3 05/30/2018 at 16:17

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sure!

let me check my couch

(also being involved in oil or gas round here would likely get me lynched... next town overs getting quite a lot of frac related earth quakes... they not so fond of that industry no more)

itschrome > E90M3 05/30/2018 at 16:21

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Sorry I only have 5 Billion aNd would rather watch fracking die than help expand it. I’M SPENDING ALL MY MONEY ON DORITOS LOCOS TACOS! YEAAAH BOI!!!

PartyPooper2012 > E90M3 05/30/2018 at 16:24

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isn’t russia and saudis about to ramp up production? Shale gonna shrivel up and disappear. Soooo ima keep my 10 billion. thanks

Decay buys too many beaters > E90M3 05/30/2018 at 16:24

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Do you know if they take personal checks?

Highlander-Datsuns are Forever > E90M3 05/30/2018 at 16:32

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More profitable than tar sands. Domestic oil will be a good investment for a long long time.

RiceRocketeer Extraordinaire > itschrome 05/30/2018 at 16:33

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that’s a different kind of gas production you’re talking about there

Ash78, voting early and often > E90M3 05/30/2018 at 16:42

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Billitons and billitons of dollhairs!

RamblinRover Luxury-Yacht > E90M3 05/30/2018 at 16:44

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I would, considering that the relatively low new development costs will make this pay off well in the long term, but...

I am not the kind of person to have 10 billion. Partly because I’d spend the first two million hilariously.

Sampsonite24-Earth's Least Likeliest Hero > Decay buys too many beaters 05/30/2018 at 16:50

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“Do not cash until February 30th”

SmugAardvark > E90M3 05/30/2018 at 16:54

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I’ve got $37.12 if we’re all chipping in...

Blunion05 drives a pink S2000 (USER WAS BANNED FOR THIS POST) > itschrome 05/30/2018 at 16:55

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And remember, if a team wins on the road in the NBA finals, you get a free Doritos Locos Taco!

Chariotoflove > E90M3 05/30/2018 at 16:58

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My wife won’t let me, even for a friend. Sorry.

415s30 W123TSXWaggoIIIIIIo ( •_•))°) > E90M3 05/30/2018 at 17:06

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My dad worked for Phil Anschutz, retired and then started working for Credo Petroleum. He is basically a land lawyer and works with exploration.  

E90M3 > Decay buys too many beaters 05/30/2018 at 17:35

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Probably.

E90M3 > RamblinRover Luxury-Yacht 05/30/2018 at 17:35

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I mean, they’d probably take 9.998 billion, right?

E90M3 > PartyPooper2012 05/30/2018 at 17:36

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Shale gonna shrivel up and disappear.

There are areas where even at $50 it’s still profitable, I don’t think it’s going anywhere any time soon.

E90M3 > Chariotoflove 05/30/2018 at 17:36

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Well damn, at least we tried.

haveacarortwoorthree2 > E90M3 05/30/2018 at 18:04

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So close. You want to set up Fraq Acquisition Corp. and Frac Consultants LLC. Put a little of your own money in FAC, get some investors, and then have FAC borrow $9.999 billion to buy the assets (but FCL is your entity). Have FAC enter into a management agreement with Frac Consultants LLC whereby FAC pays FCL huge sums of money for services. Hope that FAC has sufficient cash flow to cover the interest payments on the debt, but in the meantime make sure that FCL gets paid first. If things go great, awesome. But if things head south, FLC already has extracted a significant sum of money.

My bill for $10k is in the mail. Good luck.

Manwich - now Keto-Friendly > E90M3 05/30/2018 at 18:10

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Here you go:

Chariotoflove > E90M3 05/30/2018 at 18:14

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Also, lol that tag line, in case no one else said anything.

bmil128 > E90M3 05/30/2018 at 21:56

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Haynesville is very active right now. BHP’s problem is extreme arrogance and stubbornness about trying to adapt to US onshore operations, as well as extreme aversion to any risk whatsoever caused them to contantly be behind the 8-ball compared to the rest of the industry. Rather than listen to outsiders who know what they are doing, they have insisted on trying to re-invent the wheel and try things that have already failed and stay years behind their competition. Coupled with the likelihood they will hem and haw over wanting every last penny for their assets will drag this out longer than many people think......

E90M3 > bmil128 05/30/2018 at 22:23

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I talked to some people from my former crew, I was surprised to hear they were working in the Haynesville. I know at least back in 2014/2015 there wasn’t much activity there. My former company built a district in Shreveport LA that got closed down some time in 2014 because of inactivity.

What were they doing different than the rest of the industry? They did seem like they wanted to try all the new technology; dissolvable plugs, diverters, to name a couple. They made it seem like a big deal when my crew started pumping slickwater, not that it was new or anything. I guess they were just used to pumping crosslinked fluid.