Crimson Exploration Inc. (NasdaqGM:CXPO) today announced the acquisition of 4,700 gross (4,600 net) leasehold acres in Madison County, Texas that is contiguous to Crimson’s existing Madisonville Field. Crimson has substantially increased its leasehold position in Madison and Grimes counties during 2011 and now has approximately 19,000 gross (15,500 net) acres that it believes to be prospective for a number of liquids-rich formations.
As a result of horizontal drilling and multi-stage frac technology, the Woodbine oil play in East Texas has seen a resurgence of activity. Adjacent to Crimson’s acreage in Madison and Grimes Counties, offset operators have recently experienced excellent results from using these techniques in the re-development of the Woodbine. Additional horizontal potential exists in other proven reservoirs including the Austin Chalk, Buda, Georgetown, Lewisville and Glen Rose Formations. By year-end, Crimson will move a rig onto its initial well location, the Mosely #1H (~86% WI), and anticipates drilling the well to a total measured depth of 16,900 feet, that includes a 7,700 foot lateral. Crimson expects to keep the rig active throughout 2012 in order to assess its acreage position across Madison County and into Grimes County.
Allan D. Keel, President and Chief Executive Officer, commented, “Crimson is very pleased to increase its position in Madison County. We continue to focus our capital program on developing oil-weighted opportunities and the Madison/Grimes County area provides a multi-year inventory of liquids-rich growth opportunities with very attractive internal rates of return.”
Crimson Exploration is a Houston, Texas-based independent energy company engaged in the acquisition, development, exploitation and production of crude oil and natural gas, primarily in the onshore Gulf Coast regions of the United States. The Company owns and operates conventional properties in Texas, Louisiana, Colorado and Mississippi, approximately 6,000 net acres in the Haynesville Shale, Mid-Bossier, and James Lime plays in San Augustine and Sabine counties in East Texas, approximately 8,000 net acres in the Eagle Ford play in South Texas, approximately 15,500 net acres in Madison and Grimes counties in Southeast Texas and approximately 11,000 net acres in the Denver Julesburg Basin of Colorado.