Shale Daily / NGI All News Access

Small Producer Gets Oil, Gas from Louisiana Eagle Ford

Indigo II Louisiana Operating LLC said it has made a new oil discovery in central Louisiana with its first horizontal well targeting the Louisiana Eagle Ford Shale (LA Eagle Ford).

The Bentley Lumber 34H No. 1 well in Rapides Parish was originally spudded in late July and recently flowed at a rate of 543 boe (80% oil) during a 24-hour test.

"This first LA Eagle Ford horizontal well in the region was successfully drilled without the need for an intermediate casing string through the shale interval and involved a 15-stage fracture stimulation of the target interval," the company said. "The hydrocarbon mix is light, sweet 45 API gravity oil along with high liquid-yield natural gas (1,520 Btu and 11 gallon per minute of natural gas liquids). The oil is currently being trucked to sales and the gas is temporarily being flared with state approval."

Indigo has assembled nearly 260,000 net acres in the LA Eagle Ford play and has identified several locations to drill additional horizontal wells next year, it said. A joint venture (JV) operating partner is being sought by Indigo with a deal expected early next year, it said. Through a JV, the producer wants "to bring horizontal oil expertise and capital to this large, oil shale development project."

Indigo said it will also be "closely following" new developments by Encana Corp. and Devon Energy Corp. and other producers to the east of its acreage. Encana and Devon have successfully drilled and completed horizontal wells in the same formation and have announced additional drilling permits, Indigo said. Five to seven rigs could be operating in the emerging oil play during the first quarter, it said.

Indigo was formed in October 2006 and 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 Co.

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