August Fracking Roundup


Various news sources are reporting on a coming “re-fracking” boom targeting older, low- or non-producing wells that may benefit from enhanced oilfield recovery techniques. For example, Reuters is reporting that the fast pace of technological upgrades in the industry is allowing wells drilled as few as three years ago to benefit from the changes in hydraulic fracturing methods. The Reuters article reports that several Haynesville-area producers are having success in stimulating older wells using recent innovations. Re-fracking old wells that have already been hydraulically fractured may also be more cost-effective, as this method eliminates the initial drilling costs.

The fracking boom is having an unintended consequence as south Louisiana enters the prime period of hurricane activity. WWL-TV of New Orleans is reporting that hotel rooms throughout southwest Mississippi are completely booked, as workers taking part in the Tuscaloosa Marine Shale boom have acquired nearly every room from Amite to Natchez. Officials in southwest Mississippi, which is just across the state line from Louisiana and only a short drive from New Orleans, are advising potential evacuees to keep heading north.

In other Tuscaloosa Marine Shale news, Goodrich Petroleum released some good results earlier this month. The petroleum producer reported a strong showing from a well in West Feliciana Parish, Louisiana. Goodrich also has holdings in other areas of the TMS formation.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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