Discussion On Central Louisiana Oil & Gas Activity
Why do you think they are concentrating most of the early drilling in the eastern portion of the TMS?
FM,When you say "eastern portion", do you mean from Avoyelles to Tangipahoa?
For this question I was considering the high resistivity area only. The majority of the drilling activity has been in the eastern half - very little has been done so far(Murphy being the exception)in the west and central portion of the high resistivity area, like W.Fel parish. Is it because of the greater depth of the TMS, therefore greater cost to drill in the west/central portion?
FM,Great observation and question. Yes, W.Feliciana is deeper. It's also farther away from the historical TMS activity that took place over the years with the smaller operators. Despite all of this, W. Feliciana has attractive geological parameters in the TMS. In due time, "they will come".
I thought maybe the expiration of leases may be a factor also since some in this area go back to 2008, especially in the case of those taken by EAC. ???
FM,No doubt. Expiring leases are a key driver of the rig schedule.