LGX expands Illinois basin strategy with 3D seismic targeting

(WO) — LGX Energy is expanding its development strategy in the Illinois basin, applying proprietary 3D seismic technology to identify overlooked conventional oil opportunities in southwestern Indiana.

The company said the approach is designed to improve subsurface imaging and identify undrilled compartments, oil traps and stacked pay zones within established producing fields. LGX believes the technology can reduce drilling risk while improving the economics of developing mature conventional reservoirs.

Unlike historical exploration methods that relied largely on surface mapping and structural trends, the company said its high-resolution seismic imaging provides more detailed characterization of subsurface geology to support drilling decisions.

LGX's current focus is on shallow oil reservoirs across southwestern Indiana, where the company cited lower drilling and operating costs compared with many unconventional shale developments. Individual prospects are estimated to contain between 100,000 and 1 MMbbl of recoverable oil.

"The Illinois basin is a historic, proven producing province, yet significant opportunities remain when modern technology is applied," said Howard Crosby, chairman and chief executive officer of LGX Energy. "By deploying advanced 3D seismic surveys, we're bringing greater structural accuracy and data-driven discipline to conventional field development."

In support of its next phase of growth, LGX also appointed Regiment Securities as its investment banking advisor to provide strategic guidance on corporate development and capital planning.

The Illinois basin remains one of North America's oldest producing petroleum provinces, with operators continuing to evaluate opportunities to increase recovery from mature conventional reservoirs through improved imaging technologies and drilling techniques.