Goodrich Touts Tuscaloosa Marine Success Despite Soft Shale Worries
Located within the Texas-Louisiana Salt Basin and straddling the state line between Louisiana and Mississippi, the Tuscaloosa Marine Shale play has been touted by some as the next “big thing,” perhaps even – wait for it – the next Eagle Ford. However, some early wells in the Tuscaloosa did not always yield the results that were expected, and that created a perception by some that the clay-like nature of the rock in the formation was limiting production.
That perception began to change back in February with Goodrich Petroleum Corp.’s prolific Crosby 12H-1 well in Wilkinson County, Mississippi. While one good well does not an Eagle Ford make, the Crosby well proved that whatever challenges the Tuscaloosa Marine Shale offered could be overcome. In fact, the company is doubling down on the Tuscaloosa after issuing 6 million shares of stock Oct. 15 to fund the accelerated drilling program in the Tuscaloosa Marine, according to a press statement.
Goodrich is adding a second horizontal drilling rig in the Tuscaloosa, and said it expects to have five working rigs – all horizontals – in the formation by the end of 2014. The total capital expenditures for 2013 are expected to be $255 million, up from the previous estimates of $230 million, with the increase used for the second drilling rig, Goodrich said in a press release.
Goodrich expects to spend $375 million in the Tuscaloosa Marine play in the two-year period of 2013 – 2014, and would like to spend more. The total estimated 2014 capex budget is $375 million, the press release said.
So, is Goodrich taking a leap of faith, or were those who doubted the potential of the Tuscaloosa too quick to dismiss it?
At the moment, the answers appear to be no and yes, respectively.
In hydraulic fracturing, water, chemicals and sand are pumped into underground fissures at high pressure. The sand holds the walls of the opening apart, allowing oil to flow up the well. Clay-like material can more easily absorb some of the water used from fracking, rather than fracturing from the pressure. And when fractures in softer rock do occur, the soft rock will sometimes cause the cracks to seal, preventing some of the oil from escaping.
1234
View Full Article
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension