KOGA members discuss new drilling opportunities

PRESTONSBURG, Ky. (WYMT) - Drilling horizontal oil wells was the topic of Wednesday's meeting of the Kentucky Oil and Gas Association.

More than 150 members - many of whom are natural gas producers - learned about what some are calling a lucrative future for horizontal oil drilling on the Berea Sandstone oil play.

"The industry overall has been declining in the drilling activity," said David harris with the Kentucky Geological Survey. "And this probably is going to give us a pretty big boost in eastern Kentucky, which we need."

With natural gas prices low and oil prices high, many natural gas producers are looking to diversify since their equipment can also be used for horizontal drilling.

"It means additional revenues for not only operators but employment in the area, severance taxes," said Brent McDaniel, executive vice president of Blackridge Research Partners. "So it's a good opportunity for the eastern Kentucky region at the moment."

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