BP announced the discovery of what it has called a “significant source of US natural gas supply” following successful well tests in Mancos Shale, New Mexico.
The company bought assets in Mancos at a time when there were no gas rigs operating in the region back in 2015.
"Everyone is trying to find another play," said James Sullivan, analyst at equity research firm Alembic Global Advisors, as more drillers move to less popular regions with acquisition costs in proven fields rising.
The newly discovered Mancos Shale Well has averaged 12.9mn cubic feet per day in the first month reports state, the highest output in the region for 14 years.
Dave Lawler, Chief Executive Officer of BP’s US onshore oil and natural gas stated that the find “gives us confidence to pursue additional development of the Mancos Shale, which we believe could become one of the leading shale plays in the US.”
The find adds to BP’s existing resource base of six million acres of acquired land, producing around 300,000 barrels of oil per day in total.