Costilla Resources LLC aims to divest proven Granite Wash acreage surrounded by active drilling in the Texas Panhandle.

Meagher Energy Advisors is assisting Costilla with the sale of about 4,019 net acres with 75% net revenue interest in Hemphill and Roberts counties, Texas.

The primary target of the leasehold is the Granite Wash Shale including as many as 70 different sandstone or conglomerate sections. The leasehold ranges from three to more than 20 liquid rich stacked intervals at depths of 8,800 feet to 13,700 feet. The depositional thickness is 1,500 feet to 3,500 feet.

High measurements of gas in British thermal units (Btu) were found in multiple zones between 9,500 feet and 13,000 feet.

The Mendota, NW (Cherokee Granite Wash) and St. Clair Granite Wash fields encompass all zones from the top of the Kansas City (Hogshooter) to the Atoka formations and both are highly productive within a mile of the leasehold.

Companies active in surrounding areas include Apache Corp. (NASDAQ, NYSE: APA), Chesapeake Energy Corp. (NYSE: CHK), Cimarex Energy Co. (NYSE: XEC), Devon Energy Corp. (NYSE: DVN), Mewbourne Oil Co. Inc., Le Norman Operating LLC, Range Resources Corp. (NYSE: RRC), Sabine Oil & Gas LLC, Samson Resources Co., Texakoma Operating LP and Unit Corp. (NYSE UNT).

Chesapeake's Field State 108 is a notable offset well reporting initial production of 603 barrels of oil per day and 3,828,000 cubic feet per day. The well had cumulative production of 73,000 barrels of oil and 879 million cubic feet of gas (MMcf) after one year, according to Meagher.

A majority of the leasehold expirations will occur in 2016 with some leases having an option to extend. Certain leases contain continuous drilling provisions, dropout language and other special considerations.

Bids are due April 22. The sale has an effective date of April 1 and is expected to close June 17. For information contact Nick Asher, Meagher business development, at 303-721-6354 ext. 260.