Indigo Minerals LLC Announces the Purchase of East Texas Cotton Valley Assets from Preston Exploration LLC

Indigo Minerals LLC Announces the Purchase of East Texas Cotton Valley Assets

HOUSTON, January 2, 2014 – Houston-based Indigo Minerals LLC announced today the completion of the purchase of Preston Exploration’s East Texas Cotton Valley assets located in Harrison, Panola, Rusk and Upshur counties, Texas.  The assets include 39 vertical wellbores with net production of ~3 mmcfepd.  

Along with the wells, Indigo acquired an acreage position of approximately 12,200 net acres, the majority of which is held by production.  Indigo estimates that these East Texas properties contain 30+ horizontal Cotton Valley locations and plans to move a rig onto the assets in Q1 2014 in order to further develop these wet gas reserves.  

Lantana Oil & Gas Partners was divestment advisor to Preston Exploration.

Tags: cotton, east, harrison, horizontal, indigo, lantana, panola, preston, rusk, texas, More…upshur, valley

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Permalink Reply by adubu on January 4, 2014 at 17:05
Skip--- I will not fight APC report as you paste and copy So I HAPPY TO YIELD ---- as you say the RRC must be screwed up -- for interest if you look at field production in Carthage Haynesville Field it shows since 2009 thru 2013 1.456 Tcf Nat gas producted in the field ( The Carthage Haynesville include all HS in East Texas)with only 219 mboe about 7 barrel for every BCF of gas ---Per RRC Website-- I just wish we had some of wet shale around Martinsville in Nac county ---don't understand why RRC not report the Condensate and NGL production correct -- I can not think APC would but out phantom Qt Reports to shareholders
Permalink Reply by dbob on January 4, 2014 at 17:16

Adubu,

I think, but i'm not certain, that APC (and a few others) are sending the well stream to gas processing plants which take out the condensate/liquids.  The plant does the proccessing, and the liquids don't get reported for the individual well site.  I think, but would need an APC mineral owner to confirm, that they get paid a higher price for the wet gas, but dont get specific breakout of what their well makes in terms of liquids.

Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 17:28

 adubu, I didn't say the RRC regs were screwed up.  I said their regs are not set up to tract condensate/NGLs.  The LA DNR/Office of Conservation isn't much different.  Monthly reporting is categorized as gas or oil.  Condensate is reported as oil.  There's no way to tell whether barrels reported are condensate, oil or some combination.  NGLs are not reported anywhere.  Just as regs were not designed with horizontal drilling in mind, they are not designed to break down wet gas production in an age where much of liquid production across numerous plays is increasingly condensate and NGLs.  I think dbob is probably correct.

Permalink Reply by adubu on January 4, 2014 at 17:53

Skip -- jffree1 and dbob comments I guess is the most likely explanations--- So I am Happy to yield --- just wish the Shale in the Shelby trough area especially Martinsville had some of that "Wet" Stuff. It's like LA most all DRY gas correct???If it's send down steam how do they calculate for each well since it commingles with other well into pipeline? Look like this would mess up the State's Annual Reporting of Production of total Oil & Gas product in state each month and Year not to mention each Field. I don't see any condensate( which is high grade  gravity oil) reported either. However if you look down in the Eagle Ford Wells they report both NG and Oil each month individual wells.

Permalink Reply by Skip Peel - Mineral Consultant on January 4, 2014 at 17:56

adubu, condensate is high gravity oil.  Other than that I have nothing further to say on the subject.

Permalink Reply by adubu on January 4, 2014 at 18:02

Thanks Skip--- Learn something every Day about the HS--- I have been relying on RRC Data as absolute too much over last few years I guess--- Good Night until next interesting thread discussion  come along

Permalink Reply by dbob on January 4, 2014 at 18:10

First off, you can get an idea if there might be some liquids by looking at the specific gravity of the gas in the RRC reports. I'm too lazy to look it up tonight, but the stuff near martinsville is hotter and deeper, and the specific gravity is lower, near that of pure methane.  As specific gravity goes up, even if it is not reported, there are likely liquids being produced.  

I think mineral owners are paid based on the BTU value above a baseline, but again, someone else will need to confirm.

In the Eagle Ford, most of the wells are wet enough that you get well site separation of the main condensate load, but in all reality, the gas that comes off is still pretty wet and they are going to get condensate and liquids at the gas processing plant as well.  

Permalink Reply by adubu on January 4, 2014 at 18:15
Dbob --- yes up in Minden CV field mineral owners paid for BTU Value of gas plus also get itemized NGLs and condensate payment periodical when they sell a tank full collected over few months
Permalink Reply by adubu on January 4, 2014 at 17:58

Skip--- you don't have to be nice to Texas RRC for they are screwed up if all not reported correctly for they should make a  comment on it-- especially States Annual Production reports

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