Directors of Arkla Exploration Co., Shreveport, have approved an 80 well, $90 million tight sands drilling program to be conducted in East Texas during the next 2 years.
The program is in response to tax reform contained in the recently enacted federal budget bill.
When the tight sands program is completed, the company's resulting volumes are expected to account for 1520% of Arkla Exploration's annual gas production.
Carl S. Quinn, Arkla Exploration board chairman and chief executive officer, said, "The energy and tax policies that have made our project possible, along with comparable programs of other similarly situated producers, can be expected to have a significant economic impact on East Texas, Northwest Louisiana, and Southwest Arkansas. "
The board also approved outlays in the company's recently formed joint drilling program with Amoco Production Co. to explore a region of the Black Warrior basin.
The program will evaluate the Cambro-Ordovician Knox in a 26 county area of the Black Warrior in North Mississippi.
Arkla Exploration and Amoco own or control a leasehold position of more than 200,000 net acres in the joint program area. Amoco will serve as program operator.
Copyright 1991 Oil & Gas Journal. All Rights Reserved.
