Amelia Resources sells 40K acres of oil leases in Austin Chalk
The Austin Chalk and Tuscaloosa Marine Shale oil-producing formations -- both of which are located in Avoyelles Parish -- continue to draw attention from drilling and exploration investors.
Amelia Resources, an exploration and production company that has been active in developing oil leases in this and surrounding parishes, recently sold 40,000 acres of newly acquired leases to an undisclosed U.S.-based buyer.
That package of property is straddles the border of the Feliciana Parishes and Mississippi, Amelia President Kirk Barrell said. That area is located in the heart of what is called the “Louisiana-Mississippi (LAMS) Stack Play” on the eastern side of the Louisiana Austin Chalk trend.
“Stack play” refers to the fact that the area has both the Austin Chalk and Tuscaloosa Marine Shale (TMS) formations, which allows a company to drill into both with the same well.
Barrell said consistently higher oil prices have made stacking the Austin Chalk and TMS “a very attractive target.” He said success in the Texas section of the Austin Chalk and tests on the potential reservoir for oil and natural gas across Louisiana and Mississippi “present an excellent opportunity for expansion into a new play. We are excited to bring another new player to the region.” Amelia’s buyer focused where both the Austin Chalk and TMS have robust reservoir characteristics.
“We already have some of the best U.S. operators committed to the play in EOG, ConocoPhillips, and Marathon,” Barrell said. “With their significant experience in the same geologically-aged reservoirs in Texas, we have high hopes for the future of this stack play.”
Amelia is actively engaged in several projects across the onshore Gulf South and has closed $261 million of transactions in the past six years. It has offices in New Orleans and St. Francisville.
The company debuted 394,000 additional acres at the Summer North American Prospect Expo (NAPE), which was held in Houston Tuesday-Friday (Aug. 14-17) in Houston.
Barrell, interviewed at the airport on the way to Houston last week, said about 100,000 acres of Austin Chalk/TMS leases in Avoyelles and Rapides were in that 394,000 acres.
“It is a phenomenal block of acreage,” Barrell said. “I have evaluated wells from Mexico to Mississippi and this area is very promising,” he continued. “There has been great success in South Texas, which has the same characteristics I see in Avoyelles.”
Barrell stopped short of predicting the same level of success in this area, but is optimistic “or I wouldn’t be wasting my time and effort here.
“We have one producing well,” he continued. “Ask me for a projection when we have 50 and I will feel more comfortable making a prediction,” he added a laugh.
“What I can say is that, geologically speaking, I am encouraged with what I see in Avoyelles.”
NAPE is the oil and gas industry’s marketplace for the buying, selling and trading of prospects and producing properties. It attracts companies of all sizes, from small independents to international giants.
Amelia Resources provides online updates on Austin Chalk and TMS projects at www.tuscaloosatrend.blogspot.com.