Indigo Minerals Purchases East Texas Cotton Valley Assets

Purchased East Texas Cotton Valley assets in Harrison, Panola, Rusk and Upshur counties.

Indigo Minerals LLC completed the purchase of Preston Exploration’s East Texas Cotton Valley assets located in Harrison, Panola, Rusk and Upshur counties, Texas, the Houston-based company announced Jan. 6.

The assets include 39 vertical wellbores with net production of about 3 million cubic feet equivalent per day (MMcfe/d). Along with the wells, Indigo acquired an acreage position of some 12,200 net acres, the majority of which is held by production. Indigo estimates that these East Texas properties contain 30 or more horizontal Cotton Valley locations and plans to move a rig onto the assets in first quarter 2014 in order to further develop these wet gas reserves.

Lantana Oil & Gas Partners was divestment advisor to Preston Exploration.