Southeast Texas

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Southeast Texas (Woodbine)

As of December 31, 2015, our Southeast Texas region included approximately 36,200 gross (21,800 net) acres, proven reserves of 32.4 Bcfe, and 86 gross (50.7 net) producing wells. During 2013, Crimson, and subsequently Contango, drilled 12 gross (8.0 net) wells on acreage targeting the Woodbine formation. During 2014, we drilled 18 gross (11.6 net) wells on acreage targeting the Woodbine formation. In 2015, we brought seven gross wells (3.9 net) on production which we initiated in late 2014 utilizing a pad drilling strategy on 500 foot spacing, plus an additional one gross well (0.9 net) in our Iola/Grimes area. We also drilled one gross (0.7 net) well in our Chalktown area to satisfy a farm-in commitment and one gross (0.7 net) horizontal well testing a more aggressive completion design in the Lower Lewisville formation in our Grimes County area, as we limited our 2015 capital expenditures to strategic projects and to stay within internally generated cash flows.

Due to the low commodity price forecasts for 2016, our current budget includes no drilling in this area, but should commodity prices improve meaningfully, we may increase our activity in this area late in the year. We currently have approximately 15,400 net acres in Madison and Grimes counties, with a multi-year inventory of potential drilling locations, including the Woodbine, Eagle Ford Shale and Georgetown/Buda formations.

On December 31, 2013, we sold to an independent oil and gas company approximately 7.1% of our interest in all developed and undeveloped properties in Madison and Grimes counties for approximately $20.4 million, or $91,007 per flowing barrel of equivalent daily production and $47.32 per equivalent barrel of proved reserves.

 

Southeast Texas Metrics

 
Proved Reserves @ 12/31/15
32.4 Bcfe
% Natural Gas
39%
Average WI
59%
PV-10
$42.6 Million
Productive Wells (gross/net)
86 / 50.7
Developed Acreage (gross/net)
24,418 / 14,381
Undeveloped Acreage (gross/net)
11,740 / 7,448 
   
2015 Average Daily Production (Mmcfe) 22.6
   
Key Operated Field(s):
 
Madisonville, Iola-Grimes, Felicia, Nelsonville, and Port Acres  
   
   
Target Formation(s):  
Woodbine, Upper and Lower Lewisville, Georgetown, Eagle Ford, Yegua, Cook Mountain
   
   
   
   
 
Tags: onshore