Southern Star Provides North Louisiana Exploration Update
Dallas, TX - Southern Star Energy Inc. is pleased to provide an overview of the Cotton Valley Trend of North Louisiana.
Northwest Louisiana has been recognized as an oil and gas producing region for the past 70 years. The region has seen numerous phases of development and redevelopment resulting from improving product prices as well as advances in exploration and development technologies. Within the last five years, new drilling technology has significantly cut drilling time and completion technologies have improved production operation efficiencies by at least 200% to 300%. Additionally, oil and gas reservoir engineering advances have led to the understanding that midrange to lower permeability reservoirs can be developed economically by coupling newer drilling and completion technologies with decreased well spacing. It has become the playground for major, intermediate, and small oil companies because of the multiple stacked reservoirs characteristic of the area. The depth range in economically feasible completions range anywhere from three hundred feet (300') to more than thirteen thousand feet (13,000').
The Cotton Valley Sand play was initially explored and developed in the 1940's and 1950' throughout the northern part of Louisiana and northeast Texas. In at least twelve parishes in Louisiana and more than eight counties in Texas, operators have tested and established production from the Cotton Valley sands. Throughout the region, the sand interval commonly is a large collection of thick and thin sand members ranging in depth from 7000' to 12000'.
Within the last five years, in this region, companies such as BP America, Devon Energy, El Paso, Kerr McGee, Marathon, Petrohawk/KCS, and JW Operating have accounted for one thousand four hundred and fifty (1450) completions. They and many other smaller companies have discovered that in the last ten years technology advancements in drilling, evaluations, and completions coupled with significant gas and oil price increases has turned the Cotton Valley into one of the hottest plays in the US.
In a thirty two (32) mile by thirty two (32) mile area surrounding Southern Star Energy's new field discovery and development, more than six and a half (6.5) trillion cubic feet of gas and two hundred and seventy two (272) million barrels of oil has been produced. This new discovery area became conspicuous as a result of recognizing that only one relatively thin 8300' zone in a string of wells one mile apart stretching 10 miles produced prolifically, about four and a half (4.5) billion cubic feet gas per well in the 1950's and 1960's. The vast majority of fields in this same area since 1970 have produced hydrocarbons from at least four to five zones and sometimes up to ten zones ranging in depth from three hundred feet (300') to more than thirteen thousand feet (13,000').
Southern Star Energy has tested the Cotton Valley formation and four additional hydrocarbon bearing formations, the Nacatoch at 1,000 feet, the Annona-Buckrange at 2,050 feet, and two zones in the Paluxy at 3,500 feet and 3,800 feet. These targeted zones were primary objectives and are known to be significant oil and gas bearing producers within a ten mile radius of Southern Star Energy's leased acreage.
Southern Star Energy is jointly developing approximately 5500 contiguous gross acres in the core area of the Cotton Valley Trend. The Company has drilled 3 wells and currently is drilling its fourth well to a depth of approximately 9950 feet. The Company anticipates reaching TD on the fourth well by September 27th. Additionally the Company has begun completion activities on its first two deep wells. Given continued drilling success as achieved recently, SSEY's prospect acreage could experience the drilling of 80 development wells.
SOURCE: Southern Star Energy