Australis Starts Drilling US TMS Play
Australia-listed Australis Oil & Gas has commenced initial drilling at its Tuscaloosa Marine Shale (TMS) acreage in Mississippi and Louisiana in the US, the company said October 2.
Australis signed a contract will Nabors Drilling late August for a minimum six well commitment and the Nabors B14 rig has been mobilised to location, rigged up and commenced operations on the Bergold 29H-2 on September 29, the company announced.
“The rig has been active in the Haynesville shale, working for a major international oil and gas company and has an excellent safety and operational track record,” Australis said.
“The key objective of the initial drilling program is to replicate the historical well performance achieved within the TMS core in 2014 but at a 2018 well cost. In doing so, the intention is to demonstrate the attractive TMS core well economics and lift the value of the 95,000 net acres Australis holds in the TMS core which, based on present assumptions, represents an inventory of 350 net future well locations,” it said.
Australis expects to update the market on the well productivity performance of the initial pair of wells by late Q1 2019, it said.
In August, RBC Capital Markets analyst Ben Wilson said: “Australis is a virtual pure play on the US Tuscaloosa Marine Shale in Louisiana and Mississippi. The Tuscaloosa Marine Shale is an unloved and, in our opinion, under-appreciated US conventional oil play. Interest in the region has increased, with ConocoPhillips, Marathon, and EOG Resources all acquiring nearby acreage in central Louisiana targeting the Austin Chalk play”.