Chattanooga Shale

Geomet And The Chattanooga Shale

Geomet, Inc. (GMET) has significant acreage under lease in Northern Alabama that is prospective for the Chattanooga Shale. The company recently released data on some of the geological characteristics of the Chattanooga Shale.

Thickness – 35 to 75 feet
Depth – 1600 to 2100 feet
Organic Content – 9% to 16%
Reserves (Vertical) – 300 million cubic feet
Reserves (Horizontal) – 500-800 million cubic feet
Well Cost (Vertical) - $450,000
Well Cost (Horizontal) - $1.1 million
Porosity – 4%
Gas in Place – 8 to 15 billion cubic feet per section ___________________________________________________________________

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The Chattanooga Shale - Geomet

Geomet (GMET) is a small cap exploration and production company that has built a sizeable acreage position in the Chattanooga Shale. The company has 72,000 net acres under lease, of which it owns a 100% working interest. One of its prospects is called the Garden City prospect located in Northeast Alabama.

The Chattanooga Shale is found at depths of 1600-2100 feet at the Garden City prospect. Geomet has drilled four vertical wells and two horizontal wells here so far to date. The last horizontal well produced at a rate of 340 mcf per day.

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The Chattanooga Shale - Description

The Chattanooga Shale is an Upper Devonian shale formation that runs through Tennessee, Alabama and Kentucky. It runs concurrently and is located below the Floyd Shale, which is an Upper Mississippian Shale formation.

The Chattanooga Shale is not a major focus of the oil and gas industry since other shale plays are more attractive and delineated at this time. Companies that are currently developing its acreage include Geomet (GMET) and CNX Gas (CXG).