American Oil and Gas Reporter - October 2015 - 156

SpecialReport: Gulf of Mexico Activity
promising the safety and compliance integrity of our operations."
The company has some deepwater holdings in its portfolio and
is expected to increase its deepwater presence over time, but McCarroll says Fieldwood's focus will remain on shallower-water
blocks. "The Shelf holds plenty of opportunity for reserve and
production growth when prices rebound," he holds.
Onshore Southern Louisiana

Lafayette-based Badger Oil Corp. is focusing chiefly on onshore prospects in southern Louisiana, where lower costs and lower geologic and operating risks of shallower drilling match the
company's desired investment profile, says Operations Manager Steve Maley.
Badger Oil continues to hold nonoperating working interests
in the Gulf, including investments with Fieldwood Energy, and
holds interests in legacy producing properties, he elaborates. "We
still have nonoperated interests offshore, but for new opportunities, we have turned our attention back to the area where we have
historically worked successfully in southern Louisiana, which is
mostly south of Interstate 10," he points out.
"We have refocused our efforts, just like so many other companies have, on oil in horizons less than 10,000 feet deep. We
are going where the opportunity is," Maley says. "We really have
to sharpen our pencils and do close, detailed work, but so far it

has been working out well for us."
By targeting onshore shallower structures, Maley says Badger Oil can take advantage of lower drilling and completion costs.
"If you are prospecting deep, many times you are in a cost structure that requires a quantum leap because of the expenses of setting additional strings of pipe and using higher mud weights required for higher-pressure environments," he remarks. "By focusing our attention in shallower areas, we can maintain a more
controllable operating regime with a lower overall cost structure."
Despite the prospect of increased global oil supplies from Iran
and Iraq, there is plenty of reason for optimism, including increasing global demand, Maley insists. "With time and with patience,
positive things will happen in the market," he concludes. "I have
been around a long time. The industry has seen a lot of downturns over the years, but it seems like the nastier and deeper they
get, the quicker the market bounces back.
"If you are in this business, you have to be philosophical about
it and understand the cyclical nature of the market. Besides, it is
not all doom and gloom. Companies that can stay busy and find
profitable projects can be very opportunistic in today's environment," Maley continues. "Operators who figure out game plans
to survive and thrive during lean times will come out on the other side of the cycle in a really good position."
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American Oil and Gas Reporter - October 2015

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