Energen to pursue elusive Alabama shales

Energen Corp., Birmingham, Ala., plans further tests in 2009 of Conasauga and Chattanooga shales in Alabama without partner Chesapeake Energy Corp., Oklahoma City.

By OGJ editors
HOUSTON, Dec. 1 -- Energen Corp., Birmingham, Ala., plans further tests in 2009 of Conasauga and Chattanooga shales in Alabama without partner Chesapeake Energy Corp., Oklahoma City.

A three-well test program this year "generated neither positive nor conclusive results," said Energen, which plans to detail the results in a conference call Tuesday morning.

The 2009 tests may include drilling more wells, testing alternative completion techniques, and-or completing other zones, Energen said.

Chesapeake chose not to participate due to financial considerations, opportunities presented by other known shale plays, and lack of positive results, but Energen has the financial capacity to pursue the plays on its own and will proceed in a low-risk manner, the company said.

Energen has a 330,000-acre net lease position in the shales.

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