Random Update On Austin Chalk, East Texas -- July 10, 2016

Pantheon Resources announced it has permission to frack VOS #1, Tyler County, onshore East Texas. This will provide valuable data regarding the "independent" Austin Chalk zone, above the discovered Eagleford sandstone section.

I track the Austin Chalk here.

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Cuba Impacted By Venezuela's Woes

From Reuters, data points:

• Cuba-Venezuela: a 15-year oil assistance program
• Venezuela will cut exports to Cuba
• signals an unraveling of that 15-year assistance program
• Cuba: reliant on Venezuela -- its top energy supplier
• this year: 53,500 bopd from Venezuela, a 40% cut since 1H15
• Cuba receives 4% of Venezuela's total oil exports
• Cuba was the last to feel the impact; earlier: Uruguay, Jamaica, Dominican Republic
• on top of everything else, it's the type of oil that makes the problem worse
• Cuba has been getting Mesa 30 oil, a medium weight oil 
• Venezuela needs Mesa 30 oil as a diluent for his heavy oil refining
• Venezuela needs to cut exports of Mesa 30, the very oil Cuba nees
• forecast: Venezuela production will fall to lowest level since a devastating strike at PDVSA in 2002/2003