Caddo Minerals, Inc., an Austin, Texas based oil and natural gas investment company, announced a Mineral Interest acquisition in an Austin Chalk oil and natural gas well in Lee County, Texas. Producing more than 8,000 MCF and 600 BBL per month, the acquisition is an important part of Caddos strategy to develop a portfolio of long-term producing oil and gas properties with a hyperbolic decline rate.
Enervest, the well operator, is headquartered in Houston, Texas and one of the leaders in oil and natural gas exploitation. Enervest acquired the well from Anadarko in 2008 as part of a larger acquisition and has continued operating since that time. The Austin Chalk field, particularly the section in Lee County, is known as a consistent reservoir with high permeability. Operators are known to re-complete or re-frack the wells every 5-10 years, returning the wells close to their initial production. This makes the Austin Chalk an attractive investment for many mineral buyers.
The Austin Chalk in Lee County is an excellent reservoir from a mineral buyers perspective. Given the low decline rates and possibilities for future exploration in deeper reservoirs, the Austin Chalk represents an opportunity to diversify in a competitive investment environment says Caddo Minerals President, Bill Fowler. Caddos focus is to acquire mineral and royalty interests in oil and natural gas properties throughout the domestic United States. Well defined areas with an extended history of production and future upside due to re-completion and deeper exploration possibilities are ideal properties for us. They offer the best of both worlds. says Fowler.
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