Since the discovery of natural gas in Mississippi in the 1920’s and the drill bit’s first encounter with the Louann Salt in South Mississippi in 1936, the Mississippi Interior Salt Basin has proven to be one of the most productive sedimentary basins in the southeastern United States. Osyka’s Mississippi properties hold 75% of Osyka’s proven reserves and 90% of those reserves are from within the Mississippi Salt Basin. The salt movement and the resultant faulting and reservoir deformation have provided excellent migration pathways and seals.

With a good source of hydrocarbons in the Jurassic Smackover carbonate mudstones and the Tuscaloosa shales of the Cretaceous, good structural and strategraphic play types associated with basement ridges and fault trends, and potentially underdeveloped reservoirs, Osyka’s staff envisions excellent opportunities for the application of the latest technologies in this, the largest continental margin basin associated with the geologic opening of the Gulf of Mexico.

We are pursuing an expansion of our Mississippi holdings and have near term in-fill development, waterfloods, and new block tests planned for the coming year. Osyka’s efforts have the potential to increase our present proven Mississippi reserves by an additional 75%.