For a second time in three years, Betsy Production Co. Inc. of Magnolia is hoping to strike oil on Southern Arkansas University-owned pastureland.
Crews Monday from Sewell Drilling LLC of El Dorado were seen offloading drilling pipe as a newly erected wildcat rig prepared its initial entry into the Pettet Lime Formation some 4,650 ft. below the land just west Story Arena. That evening, drilling commenced and is now fully underway.
The Magnolia exploration company in 2015 contracted drillers in an attempt to hit black gold in the same field across from the university’s track and field complex. Its first well attempt — called SAU No. 1 — was closer to the Columbia County Fairgrounds, near the large cellular tower that has sat for years at the corner intersection of U.S. Hwy. 82 and the Old McNeil Highway. Although production work on the well officially began June 4, according to Arkansas Oil and Gas Commission reports, heavy machinery for weeks prior was seen clearing the area in preparation of the project.
Betsy Production has been busy over past few weeks as oil prices have risen steadily since early March. During the same week the drilling permit was issued – June 1-8 – a well recompletion was approved at the Thompson “A” No. 3 well in the Nacatoch Form of Gun Creek Field in Ouachita County. The well is listed to have a daily production of 25.74 barrels per day.
U.S. crude prices on June 18, 2017, finished the day at $44.43 per barrel. That equated to an average American gasoline price of around $2.30 per gallon. Looking at the same-day numbers for 2018, however, oil traded at roughly $66 per barrel with an average fuel price of $2.87 a gallon.
Regular 87 Octane prices Monday in Magnolia ranged from $2.66 per gallon to an ethanol-free price of $2.82 per gallon, according to gasbuddy.com