A new unconventional horizontal oil play has begun to create a stir in the oil and gas industry in Louisiana and Arkansas. The play is known as the “Brown Dense”, which is a section of the Lower Smackover formation that stretches along the Louisiana-Arkansas border.

Southwestern Energy Co. and Devon Energy Corp. are currently the two primary companies that have released information regarding their drilling operations and plans for the Brown Dense.

For a map of the Brown Dense, please click here.

Southwestern has leased over 460,000 acres in Columbia and Union Counties, Arkansas, as well as Claiborne and Union Parishes in Louisiana. The first well to be drilled by Southwestern is scheduled for Columbia County, Arkansas in the fall of 2011, which is to be followed by a well in Claiborne Parish, Louisiana by the end of the year. At least 10 oil and gas wells are scheduled to be drilled in 2012.

In early August, Devon released that it had acquired over 40,000 acres in the Brown Dense and plans to drill a well in Morehouse Parish, Louisiana – which is on the eastern end of the play. Devon is also currently looking to expand its Louisiana acreage by extending its leasehold to the south into Ouachita Parish.

While it is still early in the play, the presence of major players such as Southwestern and Devon adds some credibility to the early hype. However, the drilling that occurs over the next 6-12 months will determine how realistic the play actually is.

As always, Argent Property Services (APS) will continue to actively monitor oil and gas activity to ensure our clients’ property interests are protected and the wealth they obtain from their oil and gas assets is maximized.

If you have any questions regarding the Brown Dense activity or any other oil and gas management topics, contact APS President Jeremy Pendergrass at jpendergrass@argentmoney.com or call (318) 251-5813.