By OGJ editors
HOUSTON, June 5 -- Southern Bay Operating LLC, Houston, said it holds enough acreage to support spudding a well every 60-90 days for 2-3 years for Austin chalk gas in the Grimes-Montgomery extension area of Giddings field on the Texas Gulf Coast. Leasing continues.
The 1H WPT Gas Unit in Montgomery County east of Richards, Tex., second development well drilled and completed since a property acquisition in February 2007, made an initial 14.5 MMcfd of dry gas. Higher rates are probable with pipeline adjustments in progress. A third well, 1H Ashorn Unit, is drilling.
The chalk is at 14,000 ft TVD, and the wells have 5,500-6,000-ft laterals. Unit sizes range from 400 to 800 acres and average 600 acres. Southern Bay is operator and partnership manager with 10% interest subject to potential increased reversionary interests.
As the result of an Apr. 17 merger, Southern Bay Oil & Gas LP, Houston, and Chandler Energy LLC, Denver, became subsidiaries of GeoResources Inc., which moved headquarters to Houston from Williston, ND, now a regional office. G3 Operating LLC, Denver, operates GeoResources' northern region.
GeoResources sold its rotary rig to Redhawk Drilling LLC, Mohall, ND, as of May 24.
