Mississippi

Close to 40% of all of the natural gas produced in the U.S. Gulf of Mexico had been shut in as of Friday, along with nearly half of the oil produced every day.

Arroyo Midstream Partners LLC, a unit ofCanyon Midstream Partners LLC, andGoodrich Petroleum Co. LLChave struck an agreement for acreage in Louisiana and Mississippi that is prospective for the Tuscaloosa Marine Shale (TMS). Arroyo is currently providing Goodrich with wellhead gas processing services at two recently completed wells in southwestern Mississippi and expects to add gas processing facilities to process gas volumes from an additional two wells by the end of 2013. Goodrich recently said it is stepping up its activity in the TMS (seeShale Daily,Aug. 8). The wellhead processing approach allows Canyon, through Arroyo, to participate in the delineation phase of exploration and production projects and share formation risk with its partner. Arroyo is a joint venture of Canyon andGas Processors Inc.”The partnership of Canyon and GPI is a unique combination of engineering, operational and local expertise to provide producers with the midstream services required for the development of acreage in the TMS,” said Canyon President Michael Walsh.

FERC has issued a favorable environmental assessment (EA) that would allow Gulf South Pipeline to build the Southeast Market Expansion Project to increase gas deliveries primarily to the Southeast.

Now that it has seen some encouraging well results, Goodrich Petroleum Inc. is stepping up activity in the Tuscaloosa Marine Shale (TMS) of Louisiana and Mississippi, where the company is about to close on an acquisition that will more than double its footprint in the emerging play.

Tulsa-based midstream operator SemGroup on Wednesday agreed to a $300 million cash price for Chesapeake Energy Corp.’s interests in subsidiary Mid-America Midstream Gas Services LLC, that comes with a 20-year gathering and processing contract for 540,000 net acres in the Mississippian Lime play.

Dozens of companies cast 407 bids totaling $1.6 billion for 320 blocks covering more than 1.7 million acres offshore Louisiana, Mississippi and Alabama for oil and natural gas exploration and development in the Central Gulf of Mexico Lease Sale 227, held in New Orleans last Wednesday.

Dozens of companies cast 407 bids totaling $1.6 billion for 320 blocks covering more than 1.7 million acres offshore Louisiana, Mississippi and Alabama for oil and natural gas exploration and development in the Central Gulf of Mexico Lease Sale 227, held in New Orleans Wednesday.

The Interior Department is offering 38.6 million acres offshore Louisiana, Mississippi and Alabama in the Central Gulf of Mexico (GOM) Lease Sale 227 to be held in March. The sale, which could potentially result in almost 4 Tcf of natural gas production and nearly 1 billion bbl of oil production. The sale is the second in the Obama administration’s 2012-2017 Outer Continental Shelf (OCS) program and would be the first of five Central GOM lease sales to be held under the program (see NGI, July 2, 2012).

The Interior Department said Thursday it will offer 38.6 million acres offshore Louisiana, Mississippi and Alabama for oil and natural gas exploration and development in the Central Gulf of Mexico Lease Sale 227 to be held in March. The sale could potentially result in almost 4 Tcf of natural gas production and nearly one billion bbl of oil production, according to the agency.