New leasing activity from oil companies is giving Louisiana reason to anticipate developments at its shale plays, the state government says.
Southwestern Energy Co., which has headquarters in Texas, states in its July earnings report that it bought leases for 460,000 acres of shale play in Louisiana. Drilling is expected by the end of the year, the company says, after its first well is drilled in Arkansas. Southwestern officials say their review of the Brown Dense play in southern Arkansas and northern Louisiana yielded “oil characteristics” in the shale.
Devon Energy Corp., an Oklahoma company, confirmed in August that it bought leases for 40,000 acres of shale play in Louisiana. According to The Times-Picayune, State Natural Resources Secretary Scott Angelle says Devon won permits to start drilling there soon. Angelle says the surge in price for shale acreage and the renewed interest in once “very dormant” parts of the state are cause for optimism. In August, Angelle said he was “bullish” on the future of oil and gas production in Louisiana.
Today’s poll question: Do you think the Brown Dense shale formation will eventually have as big an economic impact on Louisiana as the Haynesville Shale has had?
