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Ginger Oil will start drilling Claiborne Parish test well - Magnolia Reporter - Magnolia, Arkansas News: Local Business

Ginger Oil will start drilling Claiborne Parish test well

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Posted: Monday, March 14, 2011 1:07 pm

A consortium of companies including Ginger Oil of Houston has received permits to begin drilling its Lamb No. 1 prospect well in the Tiger Creek Field of Claiborne Parish, Louisiana.

Test drilling will go to a depth of 12,300 feet. Drilling is expected to take three to four weeks.

Ginger has worked since 2007 on developing Tiger Creek. The company's press release August 22, 2008 reported the project under the name "Resource Creek." Ginger Oil completed in 2008 acquisition of mineral rights to the area in Claiborne Parish. The area is believed to contain a geologically interesting, deep, tight sandstone formation with the potential to contain hydrocarbon resources in the form of gas and condensate.

In June 2010 Ginger published an agreement with two leading oil and gas producers for participation in the exploitation of Tiger Creek. The company's two partners acquired the 72 percent cost share in the exploitation of the Tiger Creek in exchange for cash and financial commitments in connection with the first test drilling. The cost to drill the first well is approximately $12 million. If the consortium decides to proceed with production, this means additional investment of around $12 million in Lamb No. 1.

The resource potential of the Tiger Creek is classified as probable and amounts to 90 billion cubic feet of natural gas and 7.8 million barrels, a total of 22.2 million barrels of oil equivalent.

Ginger has 28 percent share of the costs and 20 percent share of revenues.

Ginger Oil is a U.S.-based oil and natural gas company focused on the prospect with the aim of finding new reserves. The company acquires, develops, extracts and sells oil and natural gas reserves. Ginger operates in Texas, Arkansas, Louisiana and Michigan. Exploration activities are conducted from Houston and its parent company based in Stockholm, Sweden.

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