New drilling near Gillsburg, Miss.

Australis Oil & Gas Ltd. is drilling new wells in an oil formation straddling southwest Mississippi and southeast Louisiana near Gillsburg, Miss. It is the first new wells drilled in the area in about three years. The Australian company says it plans to drill at least six wells. The company bought 81,000 acres of leases in the region in 2016-17 in part of the Tuscaloosa Marine Shale. AO&G plans to spend $43M in borrowed money on drilling, which would be an average well price of about $7M. (Source: The Associated Press 10/22/18)