The Houston-based Goodrich Petroleum has completed its second successful well in Tuscaloosa Marine Shale in southern and central Louisiana. The well, in Tangipahoa Parish, is producing about 1,270 barrels of oil and 115 million cubic feet of gas per day. This result will likely increase an already considerable interest in the shale among investors.
Experts estimate the Tuscaloosa Marine Shale holds 2.7 billion barrels of oil spanning a large portion of the state, from Vernon Parish to the west across to Washington and St. Tammany parishes as well as a section of south-west Mississippi in the east.
Goodrich is one of several companies carrying out work in the Tuscaloosa Shale. The shale is considered more expensive than other locations due to the fact that the oil and gas deposits lie deeper down than elsewhere.
On the other hand, a presentation published on Goodrich website also points out strengths that make the area a prime place for exploration. These promising features include:
- Initial production results are very positive and improving.
- Economics potentially superior to Eagle Ford.
- Well costs coming down as best practices are implemented. Service costs will decline with success of the play as additional capacity moves into the field.
- Favourable regulatory environment, with very supportive state administrations (severance tax relief).
- Cooperative landowners receptive to development activities.
- Ready market for the crude oil, priced at LLS. Agreement in place to strip the liquids from the rich natural gas.
- Large acreage owner in the core of the TMS with substantial leverage to the play’s success
The full presentation is available for download from Goodrich Petroleum website.
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