Saturday, August 22, 2009

Taking Another Crack at Mississippi

Another small exploration company has leased land in Mississippi for the purpose of exploring the Haynesville Shale. American Exploration Corp., has leased 5,000 acres in Jefferson County, MS. The prospect appears to be based on information from a well Chevron drilled back in 1981.

American Exploration Corp. is a thinly traded over-the-counter stock that commenced operations in 2008. The company plans to explore in the U.S. but is a Calgary-based company. Its strategy is to target opportunities in the interior salt basins of the Gulf Coast Region to find characteristics similar to those of the Haynesville Shale.

Jefferson County is in the southwest portion of the state, bordering the Louisiana. According to company materials, the prospect is 2,500 feet thick (the Haynesville Shale is between 150 and 300 feet). The company wasn't very clear on it, but it appears that the prospect is between 18,000 and 19,500 feet deep (the Haynesville Shale in NW LA is +/- 11,250 feet deep), which means that drilling costs and complexity likely would be higher than in LA/TX.

Earlier this summer, Mainland Resources announced a lease nearby in Mississippi for the same purpose. Interestingly, Mike Newport, CEO of Mainland, is a technical adviser to American Exploration.

I'm not sure what either company will find, but godspeed to them both. It would be further proof that North America is awash in natural gas.


Tony said...

I believe this acreage is in Jefferson County, not Jackson County (assuming American's press release is correct).

Robert Hutchinson said...

Thanks, Tony. Sometimes I get my US presidents that start with "J" confused. Further evidence that I should take the weekends off.