Union Pacific Resources Group Inc. (UPR), Fort Worth, has earmarked $100 million to expand activity in Louisi- ana's booming Austin chalk drilling play.
The action boosts the company's 1996 capital budget to $767 million.
UPR aims to step up drilling in the upper Cretaceous formation, mainly in Vernon Parish, and construct a 100 MMcfd cryogenic plant to process liquids rich gas from chalk wells in the Masters Creek area of western Louisi- ana. UPR will operate and hold a majority interest in the processing plant.
In addition, the company intends to lay gas gathering pipelines in Vernon and Rapides parishes to feed the Masters Creek plant. Officials estimate the cost of processing and gathering facilities at $50 million.
General contractor for the gas gathering and processing project, Schedule A Inc., Houston, is to start a construction program in October 1996 expected to have facilities ready to go on line about the end of first quarter 1997.
UPR also plans to lay an interstate pipeline to transport natural gas liquids from Masters Creek to Gulf Coast markets.
Even before it boosted spending in the play, UPR was among the leaders in exploration and development in the Louisiana Austin chalk.
The Louisiana chalk is the eastern part of a trend extending from Mexico across Texas and Louisiana and into the Gulf of Mexico.
In addition to its drilling program in Vernon and Rapides parishes, UPR is pursuing Austin chalk prospects in Point Coupee, East Baton Rouge, West Baton Rouge, and Livingston parishes through a joint venture with Amoco Production Co. (OGJ, Apr. 29, p. 15).
UPR in early June held a 550,000 acre net leasehold in the play and was continuing to lease acreage. The company holds interests in 13 Louisiana chalk wells drilled in the past 14 months and has two rigs running in the trend.
George Lindahl III, UPR's executive vice-president in charge of operations, said the company's positive results in the Louisiana chalk had spurred its development efforts along the tend.
"We anticipate that by yearend 1996, UPR will increase its rig count in the area to seven rigs, and we will have participated in the drilling of 44 wells in the Louisiana portion of the trend," Lindahl said.
The most active driller in the U.S., UPR is majority owned by Union Pacific Corp., Bethlehem, Pa.
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