A horizontal well targeting the Cotton Valley formation in northern Louisiana recently flowed at an initial production rate of 3,019 boe/d over a 24-hour period, according to privately held producer Indigo Minerals LLC.

The Berry 25H No. 1 in Caddo Parish appears to be 65% weighted to natural gas and 35% to natural gas liquids (NGL), Indigo said. The well has a horizontal lateral length of 3,700 feet with a total measured depth of 14,175 feet and was fracture stimulated using 12 separate stages along the lateral, according to Indigo.

“The production is flowing to sales via a new 20-mile DCP Midstream Partners pipeline,” which is carrying the output to an NGL plant near Carthage, TX, Indigo said.

DCP Midstream, which has been expanding its NGL processing capabilities, two weeks ago paid $63 million to acquire the Crossroads system in East Texas (see Shale Daily, June 21).

Indigo said it has about 60,000 net acres in northern Louisiana and has drilled 24 horizontal Cotton Valley wells to date. Several of the Cotton Valley wells “have tested for over 1,500 boe/d including one well that was over 3,300 boe/d,” it said. In addition, the producer has identified more than 500 other proved locations in this area of Louisiana, where it is running three horizontal rigs. A fourth rig is to be added in the coming weeks.

“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/d (20,000 boe/d) by year-end 2012,” it said. Including the Berry well, the producer said it has three wells producing at a combined rate of about 26 MMcfe/d (5,786 boe/d) gross with another seven wells drilled and waiting on completion.

Indigo is backed by Yorktown Partners, the Martin Cos., Ridgemont Equity Partners and Indigo management.