In spite of low gas prices, some operators are continuing to look for opportunities and are drilling horizontal gas targets in established fields in East Texas and North Louisiana.

Indigo Minerals LLC paid Compass Production Partners LP $160 million in cash for acreage and producing properties in East Texas and North Louisiana. The properties acquired include about 90,000 acres where Compass is producing 34 million cubic feet equivalent per day (MMcfe/d) of gas. In East Texas, Indigo Minerals is acquiring Travis Peak and Cotton Valley production in the Waskom and Danville field areas.

North Louisiana Exploration acquired numerous tracts at the Louisiana Department of Natural Resources August lease sale, including a 349-acre parcel in Lincoln Parish. The company paid a sale-high $786,297 for a portion of Section 23-18n-3w and is about five miles southeast of numerous horizontal Cotton Valley gas wells in Terryville and Ruston fields. MRD Operating and WildHorse Resources LLC both have horizontal development programs in the area.

IHS reported that Delta Land paid about $2.3 million for 368.47 acres in Lincoln Parish, La. Covering portions of sections 26 and 35 in 18n-3w, there has been no previous drilling on the acreage. The most significant development is six miles northwest of Delta Land’s newly acreage, where several operators have horizontal Cotton Valley drilling programs in the Terryville Field area.

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1. WildHorse: Cotton Valley, Lincoln Parish, La.

A Lincoln Parish, La., Cotton Valley producer was announced by WildHorse Resources in Simsboro West Field.

The #1 LUMCFS 2-11 H was drilled to 18,255 feet in Section 2-18n-4w. It flowed 24.96 MMcf of gas, 390 barrels (bbl) of condensate and 2.2 Mbbl of water per day through perforations at 11,990- to 18,140 feet.

It was tested on a 34/64-inch choke, and the flowing tubing pressure was 4,020 pounds per square inch (psi). The lateral bottomed more than one mile to the south in Section 11 at a true vertical depth of 11,430 feet. Wildhorse’s headquarters are in Houston.

2. Tanos Exploration: Cotton Valley, Smith County, Texas

In Smith County (RRC Dist. 6), Texas, Tanos Exploration II LLC has completed a Cotton Valley horizontal well in its Overton Field drilling program.

The #1H Guthrie-Wilson Gas Unit 1 Allocation was tested flowing 8.551 MMcf of gas, 456 bbl of condensate and 1.75 Mbbl of water per day through acid-and fracture-treated perforations at 11,805- to 16,161 feet. The well is on a 1,312-acre lease in Jose Maria Procela Survey, A-17.

It was drilled to 16,237 feet, 11,544-foot true vertical, and bottomed one mile to the south. Gauged on a 38/64-inch choke, the flowing casing pressure was 2,025 psi. Tanos’ headquarters are in Tyler, Texas.

3. Sabine Oil & Gas: Cotton Valley, Rusk County, Texas

Two Cotton Valley producers were reported by Houston-based Sabine Oil & Gas LLC in Rusk County (RRC Dist. 6), Texas.

The #3H Byron Gas Unit flowed 11.526 MMcf of gas, 205 bbl of 58.5-degree-gravity condensate and 2.05 Mbbl of water per day. Production is from fractured perforations at 11,235- to 16,622 feet. It was tested on a 44/64-inch choke with a flowing casing pressure of 2,315 psi and a shut-in casing pressure of 2,589 psi.

This discovery is on a 640.97-acre lease in the Henry M. Smith Survey, A-702.

The 16,757-foot Henderson East Field well bottomed about 1.5 miles to the north at a true vertical depth of 10,799 feet. The offsetting #4H Byron flowed 11.564 MMcf of gas, 278 bbl of 58.9-degree-gravity condensate and 1.38 Mbbl of water per day from fractured perforations at 11,182- to 17,032 feet.

The 17,165-foot Henderson East Field well bottomed about 1.5 miles to the north at a true vertical depth of 10,778 feet.

4. Tanos Exploration: Cotton Valley, Smith County, Texas

In its Overton Field drilling program in Smith County (RRC Dist. 6), Texas, Tanos Exploration completed a horizontal Cotton Valley well.

The #1H McElroy-Swann Allocation flowed 5.551 MMcf of gas, 233 bbl of 67.6-degree-gravity condensate and 1.381 Mbbl of water per day through acid- and fracture-treated perforations at 12,138- to 17,941 feet. Gauged on a 36/64-inch choke, the flowing casing pressure was 1,815 psi and the shut-in casing pressure was 1,900 psi.

The 17,999-foot (11,672 feet true vertical) well is on a 1,059-acre East Texas lease in the Edson Gee Survey, A-10. The lateral extends over a mile and a quarter to the north.

5. Bonanza Creek: Cotton Valley, Columbia County, Ark.

In Columbia County, Ark., Bonanza Creek Energy Inc. (NYSE: BCEI) completed a Cotton Valley workover as part of Dorcheat Macedonia Field.

The #4 Link-Warnock was tested pumping 85 bbl of oil, 262 Mcf of gas and 3 bbl of water per day through an expanded Cotton Valley zone at 6,674- to 8,208 feet. The directional well was drilled to 8,805 feet and is in Section 15-18s-21w. The original hole was tested in early October flowing an unreported amount of oil through Cotton Valley perforations at 8,198- to 8,208 feet.

Bonanza Creek has had an active development program in the field for several years. Numerous other Cotton Valley workovers completed by the Houston-based company are in the sections surrounding the company’s latest workover.

6. Indigo Minerals: Cotton Valley, Panola County, Texas

Indigo Minerals has completed a horizontal Beckville Field well in Panola County (RRC Dist. 6), Texas.

According to IHS, #4H TXU Tatum Gas Unit 1 was tested flowing 9.978 MMcf of gas, 55 bbl of 47.7-degree-gravity condensate and 2.2 Mbbl of water per day through acid- and fracture-treated Cotton Valley perforations at 10,750- to 15,912 feet. Tested on a 62/64-inch choke, the flowing casing pressure was 797 psi and the shut-in casing pressure was 2,018 psi.

The 16,066-foot well has a true vertical depth of 10,469 feet and is on a 700-acre East Texas lease in James Reel Survey, A-564 and it bottomed nearly a mile to the south.

7. Nadel & Gussman: Cotton Valley, Lincoln Parish, La.

A Lincoln Parish, La., horizontal Cotton Valley discovery was reported by Tulsa-based Nadel & Gussman LLC.

The #1 Williams 11-12H flowed 15.416 MMcf of gas, 60 bbl of 58-degree-gravity condensate and 1.1 Mbbl of water per day. Production is from perforations at 11,090- to 15,509 feet. The flowing tubing pressure was 6,500 psi when tested on a 26/64-inch choke.

The Choudrant Field well was drilled to 15,638 feet, 10,939-foot true vertical, and is in Section 11-18n-2w. The lateral bottomed one mile to the northeast.

For more information on Activity Highlights, contact Larry Prado, activity editor, at lprado@hartenergy.com.