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Energen announces lack of economic viability of Conasauga shale leasehold.

M2 EQUITYBITES-20 July 2010-Energen announces lack of economic viability of Conasauga shale leasehold(C)2010 M2 COMMUNICATIONS http://www.m2.com

Diversified energy holding company Energen Corporation (NYSE:EGN) disclosed on Monday that its unproved capitalised leasehold related to its deep Conasauga shale acreage will be written off as economically not viable, in the second quarter of 2010.

Energen further said that the non-cash charge will total USD10m or USD0.14 per diluted share after-tax.

A Mushwad formation in Alabama, the Conasauga shale's composition appears to be very tight with limited permeability and porosity, the company said and added that meanwhile it will complete its Westervelt 19-2 #1 well in Tuscaloosa County, Alabama, to determine the economic viability of the Chattanooga shale.

Additionally, Energen's remaining capitalised, unproved leasehold associated with its Chattanooga shale and the shallow Conasauga shale is USD14.4m after-tax or USD0.20 per diluted share.

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Publication:M2 EquityBites (EQB)
Date:Jul 20, 2010
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