Top Oil & Gas Lease Prospects in the U.S. Southeast

Evaluating Prospects / Acreage Properties

Subsurface Geology and Resource Potential

When evaluating prospects or acreage, the first priority is to assess the subsurface geology and its potential to host hydrocarbons. This involves interpreting seismic data, reviewing well logs, and integrating regional geological maps. You should focus on identifying structural and stratigraphic traps, reservoir quality (porosity and permeability), source rock maturity, and seal integrity. Pay close attention to any direct hydrocarbon indicators. The size, depth, and continuity of the reservoirs will dictate the potential volume and recoverability of oil & gas present in the acreage.

Ownership, Lease Terms, and Regulatory Environment

The next critical factor is understanding the legal framework associated with the prospect. Carefully review ownership status, lease terms, royalty rates, expiration dates, and any obligations for drilling or other work. Assess if the acreage has clean title and is free from competing claims, liens, or encumbrances. Additionally, investigate local and national regulatory requirements, surface access rights, and any environmental or community restrictions that could impact development. An attractive geological play can be rendered uneconomic by unfavorable lease terms or regulatory hurdles.

Infrastructure and Proximity to Markets

Lastly, analyze the accessibility of the acreage and its proximity to existing infrastructure and markets. This includes the distance to pipelines, roads, processing facilities, and export terminals, as well as the ease of securing necessary utilities and water sources. Properties that are close to infrastructure often have lower development and operating costs, faster time to market, and reduced logistical risks. Consider whether you will need to build new infrastructure, and factor those costs and timelines into your evaluation of the acreage’s overall value and commercial potential.