Eagles Ranch well producing oil, gas in Goudeau
The Eagles Ranch well near Goudeau has reported its first production numbers, giving oil industry observers cause for optimism concerning the once-lucrative Austin Chalk formation.
The initial numbers from Houston-based EOG Resources first Louisiana well in the Austin Chalk layer showed 1,120 barrels of oil and 1.16 million cubic feet of natural gas in a 24-hour period.
It also produced 2,947 barrels of water during that period.
One interested party in the Avoyelles area Austin Chalk activity is Amelia Resources President Kirk Barrell. Barrell said EOG released an “official initial potential” report on the well, but downplayed the importance of those numbers.
“The production rate, GOR (gas-to-oil ratio), pressure and water production in 6-12 months is much more important,” he said.
Barrel (pronounced Bah-REL) is not only an interested observer, but also a participant in the oil exploration efforts.
“We are obtaining leases,” he said, but is not involved in EOG’s activities.
‘BLESSING' TO PARISH
“What I tell people about this is that it is a blessing for this to be occurring in Avoyelles Parish,” Barrell said. “These people are willing to risk their dollars in the hopes of a potentially large return on their investment.”
Amelia Resources is a New Orleans-based company generating onshore drilling prospects in the United States. The company uses its knowledge, data, experience and industry relationships to obtain capital partners for drilling/exploration projects. The company has been involved in closing $146 million of transactions since 2011.
Barrell is not the only interested party watching the new well.
“There is a lot of interest out there,” he said, noting that he has received numerous calls from individuals asking questions about the Goudeau well and prospects for future drilling activity.
Barrell said the state “allows a lot of leeway with regards to how an operator determines the initial potential.”
He said the reported numbers may not represent the best rate of production.
“Operators tend to release smaller rates when they are still leasing,” Barrell noted. “I hear that EOG is wrapping up their lease acquisition. Flippers tend to buy based on the rumors.”
An EOG spokesperson said the company does not comment on “active exploration efforts,” other than to confirm EOG is working in the area.
Barrell said the gas-to-oil ratio of Eagle Ranch 14H-1 “is typical for the area. The GOR in six months will be much more telling.”
He said the volume of water in the initial report is no cause for alarm.
“Austin Chalk always produces a lot of water,” he added.
Eagles Ranch is the first well to be drilled into the state’s Austin Chalk layer in the past 20 years. It was drilled about 16,700 feet deep with a horizontal lateral drilling of over 5,000 feet.
EOG has reportedly leased more than 130,000 acres in southeast Avoyelles, west Pointe Coupee and north St. Landry parishes.