by Luke Jones
Posted 9/5/2011 12:00 am
Updated 2 years ago
After an announcement last month of its intention to test wells in the Lower Smackover Brown Dense Formation, Southwestern Energy Co. of Houston is preparing to drill for oil.
The Arkansas Oil & Gas Commission filed a report last week stating Southwestern received a drilling permit for the planned horizontal well. The well will be drilled at the Atlanta Field in southeast Columbia County.
The drilling contractor is DeSoto Drilling Inc. of Conway, and the well will reach a true depth of 8,927 feet and a measured depth of 13,020 feet.
If the plan goes through, Southwestern will have a $10.5 million investment in the well, part of a $150 million investment in the 460,000 acres of the Smackover formation. The formation represents more than half the company's land.
In a report in August, Southwestern President and CEO Steven Mueller said the land had been investigated for the last two years.
"This region of Arkansas and Louisiana has produced oil and gas from the Upper Smackover since the 1920s," he said. "It has the critical properties necessary to be a successful play and compares favorably to other productive oil plays in the United States."
In its report, the Oil & Gas Commission also noted 12 other drilling permits had been issued last week to various companies in south Arkansas.