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Permalink Reply by Skip Peel - Mineral Consultant on May 15, 2012 at 4:58

Yeah I know it's fuzzy that's why I pointed out the location of Township 16N-14W as a way to help figure out the other townships.  This fairway is relatively narrow and discrete according to previous comments by Jay.  IMO it is too narrow to define by fields.  It runs roughly from the NW quarter of 15N - 14W SW through much of 15N - 15W, the SE quarter of 15N - 16W, most of 14N - 16W, the north half of 14N - 15W and most of 13N - 16W,  The remainder of the fairway continues SW into E TX.  Note:  The well symbols denote the fairway, not the yellow squares.  The yellow denotes Indigo leasehold in the general area.

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Permalink Reply by W. Carter Richardson on May 15, 2012 at 5:37

Skip- at this point  what kind of monthly revenue is Indigo seeing from these CV wells?

Permalink Reply by Skip Peel - Mineral Consultant on May 15, 2012 at 5:48

Carter,  I haven't looked beyond the financial metrics published by Indigo.  On the same web page right of the fairway map, look under the heading "Gaining Value Through Drilling a typical Cotton Valley Horizontal Well".  Indigo's pricing assumptions appear quite conservative for return over the life of a well.  And few wells of any kind that I am familiar with have IP's of 1,709 BOED and EUR's of 1,310,000 BOE.

http://indigominerals.com/property/Webslideshow2.pdf

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Permalink Reply by Skip Peel - Mineral Consultant on June 29, 2012 at 10:23

Indigo well announcement, 6/29/12.

Indigo Tests Horizontal Cotton Valley Well Flowing 3,019 BOE per Day

HOUSTON, June 29, 2012 /PRNewswire/ -- Indigo Minerals LLC ("Indigo") today announced that it has tested a new horizontal well targeting the Cotton Valley formation in North Louisiana.   The Berry 25H #1 located in the Caspiana Field, Caddo Parish, Louisiana flowed at a rate of 3,019 BOE per day (65% gas, 35% NGLs and condensate) during a 24 hour test period.  This Cotton Valley well has a horizontal lateral length of 3,700', a total measured depth of 14,175' (9,981' TVD), and was fracture stimulated utilizing 12 separate stages along the lateral.  The production is flowing to sales via a new 20-mile DCP Midstream Partners pipeline that carries the full well stream to the DPM plant located near Carthage, Texas for further processing and NGL extraction.

Indigo has assembled 60,000 net acres in this immediate area and has drilled 24 horizontal Cotton Valley wells on this large acreage block to date.  Several of the Indigo wells in this area have tested for over 1,500 BOE/D including one well that was over 3,300 BOE/D.  These horizontal wells have set new company records as well as a new industry record for horizontal Cotton Valley wells in the overall Ark-La-Tex region.  Indigo has identified over 500 additional Horizontal Cotton Valley proved locations in this area of North Louisiana and is currently running 3 horizontal rigs and will be adding a fourth rig in July to further exploit this particular acreage block.

In total, Indigo has 120,000 net acres in the Ark-La-Tex region with net production of approximately 70 Mmcfe/d, projected to reach 120 MMcfe per day (approx. 20,000 BOE per day) by year end 2012.  Including the Berry 25H #1, Indigo is currently flowing back 3 new wells at a combined rate of approximately 26 Mmcfe/d (5,786 BOE/D) gross and has another 7 new horizontal Cotton Valley wells drilled and waiting on completion.

Indigo was originally formed in October 2006.  The company is backed by Yorktown Partners, the Martin Companies, Ridgemont Equity Partners and Indigo management.  Through its relationship with the Martin Companies, Indigo owns the existing oil and gas leases and minerals of two of the largest private landowners in the state of Louisiana - Roy O. Martin Lumber and the Martin Timber Company. 

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements within the meaning of the federal securities laws. Important factors that could cause our actual results to differ materially from those contained in the forward-looking statements include early initial production rates which may decline steeply over the early life of wells, our growth strategies, our ability to successfully and economically explore for and develop oil and gas resources, anticipated trends in our business, our liquidity and ability to finance our exploration and development activities, market conditions in the oil and gas industry, our ability to make and integrate acquisitions, the impact of governmental regulation and other risks.  

Forward-looking statements are typically identified  by use of terms such as "may," "will," "expect," "anticipate," "estimate" and similar words, although some forward-looking statements may be expressed differently. All forward-looking statements contained in this release, including any forecasts and  estimates, are based on management's outlook only as of the date of this release, and we undertake no obligation to update or revise these forward-looking  statements, whether as a result of subsequent.

SOURCE Indigo Minerals LLC

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Permalink Reply by Skip Peel - Mineral Consultant on June 29, 2012 at 12:22

Indigo is running three rigs in S Caddo.  And interest in CV horizontal liquids appears to be cropping up in other areas far removed from the Indigo fairway in S Caddo/N DeSoto.

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Permalink Reply by Bobi Carr ("parker") on June 29, 2012 at 12:50

What other areas?  

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Permalink Reply by Skip Peel - Mineral Consultant on June 29, 2012 at 13:13

Bobi, you can call me for an answer to that one however I can't post the specifics to the site just yet.  I'm still running down supporting evidence.

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Permalink Reply by tc on June 29, 2012 at 13:47

I hate these misleading headlines.  Any well that produces over 50% NG should be required to state production in mcfe.  Most wells in the Shelby trough/Angelina River trend could claim IPs of over 3,000 BOE, but you don't see EOG, Encana, Exco, and Goodrich post BOE headlines they use the more accurate Mcfe.  Not saying this isn't a good well, even though choke and pressure info is missing, but a true 3,019 BO will bring in 3-5 times more revenue than this well.

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Permalink Reply by john hamilton on June 30, 2012 at 2:30

Hey jay should the aforementioned postings concerning future

Indigo  Wells and plans for developement in South Caddo, give

me hope that our families 250 acres in S. Caddo (033  16n-13w) Elm Grove

might soon contain such a well? 

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Permalink Reply by RONNY on June 30, 2012 at 3:26

What does 3019 BOE per day (65% gas and 35% NGLs) translate to in MCF and barrels?  Thanks.

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Permalink Reply by RONNY on June 30, 2012 at 3:46

Holy Smokin' horizontal batman.   I hope the decline curve isn't too steep.  Thanks Jay.

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Permalink Reply by tc on June 30, 2012 at 5:37

I am curious if the decline curve is consistent for all the products over the years.  In 2 years is the well still 65/35 or does the well get drier or wetter.  Goodrich has some CV Taylor Sand wells in Rusk county that had IPs of 40 BO per 1 MMcf, but after 2 years I am not sure if the ratio is still the same.

 

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