Indigo's recent well results indicate the commercial extent of the Eagle Ford could extend into Louisiana. Indigo recently completed a successful well in Rapides Parish, La, that flowed over 500 boe/d over a 24 hour period. The company plans to sell an operated interest in its assets in early 2012 and then begin development of the play. For reference, here's a simplified cross section of the Eagle Ford from Texas to Louisiana.
The company's first horizontal well targeting the Louisiana Eagle Ford Shale (“LA Eagle Ford”) formation has been tested resulting in a new oil discovery in Central Louisiana. The Bentley Lumber 34H #1 located in Rapides Parish, LA originally spud back in late July 2011 and recently flowed at a rate of 543 barrels oil equivalent (80% oil) during a 24 hour test period. 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 hydrocarbon mix is light, sweet 45 API gravity oil, with liquids rich natural gas (1520 Btu and 11 GPM natural gas liquids). The oil is currently being trucked to sales and the gas is temporarily being flared with state approval.
Indigo II has assembled nearly 260,000 net acres in the LA Eagle Ford play and has identified several locations to drill additional horizontal wells in 2012. Prior to doing so, it intends to secure a joint venture operating partner sometime in early 2012 to bring horizontal oil expertise and capital to this large, oil shale development project. Indigo will also be closely following new developments by Encana, Devon and others to the east of its acreage position. Both operators have successfully drilled and completed horizontal wells in the same formation and have announced additional new drilling permits. It is anticipated that 5 to 7 rigs could be operating in this emerging oil play during the 1st quarter of 2012.