Does anyone know why Indigo has halted all proposed deals with families that were very close to actually being paid for right of way roads and drill platforms in Desoto Parish?

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Where in Desoto?

Logansport area
Logansport area.

Indigo has sold a portion, or all, of their Arklatex assets.  It is possible that all “deals” are on hold until the new operator has time to review?  When I get back to my office, I will share the new operator information.

VERY interesting! Do tell!!

Really, when you get back to your office?  Please post then.  


Sorry!  I got tied up and may have forgot!  I received a letter from Brookston Energy announcing their acquisition of Indigo's interests in the Waskom Field(Caddo Parish, Harrison County, Panola County)  This appearently took effect in November 2018.  I know nothing about Brookston.  Their mailing address is in Tyler, TX.  Hopefully they will resume any projects once they get settled in.  

Brookston Energy appears to be an operator of marginal wells.  In addition to Indigo, the company has picked up a well from XTO.  I didn't look further because the Change of Operator form contained in the well file shows that the majority of the wells Brookston acquired from Indigo are classed as Incapable Gas wells.  Incapable Gas wells receive certain tax breaks from the state, see explanation below.  Note that 250,000 cubic feet is the same as 250 mcf.  This is the normal evolution of wells that are handed down from operator to operator over time as the well declines.  Brookston Eneregy looks to me like a company that specializes in operating largely depleted wells.

Incapable Gas Well Gas STATUTORY CITATION: R.S. 47:633(9)(c) 1-3/10 cents per MCF for gas produced from a gas well, which is incapable of producing an average of 250,000 cubic feet of gas per day. To qualify for the reduced rate a gas well must be incapable of producing 250,000 cubic feet of gas per day during the entire taxable month.


I have a tiny interest in a section in western DeSoto Parish in which XTO had drilled an early, disappointing HA well early in the cycle.  They sold that to Brookston, who, as you say, seems to buy very marginal wells on their last legs, and keeps them operating and producing, and, presumably, with their very low overhead, can make a little money out of the wells.

My concern is that I’m interested in having a savvy operator drill a CUL in the area and see if they can make a decent well.  I’m certain that Brookston isn’t going to do that.  But I don’t know if XTO sold “this well” or their leasehold ownership in the section.  Not sure how I find out.  If Brookston bought the leasehold, then I can basically write off this section as having any future value to me, unless they farm out the lease to someone else.  I fear that by the time this section becomes economical, the market for natural gas will be going, going, gone.

I could always send Brookston a letter demanding a release of the lease based on failure to produce in paying quantities, but then the economics of investing in that process becomes an issue.

Steve, you're right that Brookston is unlikely to drill a horizontal Haynesville Shale well.  As to their ownership foreclosing the possibility of future Haynesville wells, that would not necessarily be the case.  It would take some digging to reveal whether XTO sold their leases in addition to the wellbore.  Regardless, the one operator per unit policy of the Office of Conservation has been changed to allow a unit operator to continue operating  unit wells while allowing a different company to drill and operate additional Horizontal Cross (HC) wells that include that unit.  There have already been several instances where this has happened.

XTO has a rig just north of Logansport off of Highway 5 in DeSoto.  


My interest is just west of Stanley.  For reasons unclear to me, persumably geology, the area around Stanley has not been a good area for HA wells.  Comstock just drilled a CUL just east of Stanley, but I haven’t been able to see what the initial production has been from that well.  The info on Sonris is sketchy.



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