Jul 2 2012
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.