The hot East Texas Jurassic Cotton Valley pinnacle reef play keeps getting hotter.
An affiliate of MCN Corp., Detroit, paid $28 million for an 82% interest in Broughton Associates LP, Houston. Broughton claims the trend's largest acreage holding, 300,000 gross acres, in the heart of the trend in Freestone, Leon, and Robertson counties.
Broughton owns 50% of Broughton Associates Joint Venture, with the other half believed to be owned by the trend's leading well operator, Marathon Oil Co.
Broughton has participated in three significant trend discoveries in Robertson County and plans to operate or participate in 17 more exploratory tests this year. Broughton had not operated a well in the trend through late July.
Marathon's 1 Brounkowski, in Robertson County, is the trend's highest flowing well at about 30 MMcfd (see map, OGJ, May 6, 1996, p. 124). More than 15 3D surveys have been conducted and about 10 rigs were drilling in the play as of mid-July, Petroleum Information reported.
E&P expanding
Broughton participated in Marathon's 1 Riley Trust, Robertson County, the trend's No. 2 producer at 24 MMcfd.
MCN said the 2 Riley Trust well, in completion in late July, is "expected to significantly outperform" the 1 Riley Trust. Broughton controls more than 20,000 leasehold acres in the immediate Riley Trust area.
MCN said the 1 Manzikert, a pinnacle reef discovery midway between the Brounkowski and Riley Trust wells 5 miles apart, is flowing more than 6.5 MMcfd. Zackson Resources Inc., Houston, operates the 1 Manzikert.
The MCN entity acquiring the interest in Broughton is Southwest Gas Supply, a unit of MCN Investment Corp. Broughton's interests have been identified previously under the names SK Resources and Eastern Exploration.
MCN said 3D seismic data have been acquired over more than 400 sq miles in the trend, and at least 30 drilling prospects have been acquired on the one third of that which has been processed. Another 320 sq miles of 3D seismic is planned soon.
MCN said the acquisition provides it with "a significant position in one of the most active onshore gas exploration and production plays in North America."
Tom Brown Inc., Midland, recently announced that it controls 50,000 gross acres (34,000 net acres) in a northern extension of the area in which the play has initially developed.
The company identified more than 40 2D seismic anomalies that are potential pinnacle reefs on two prospects, the Lost Prairie prospect northeast of Palestine in Anderson County and the Lake Tyler prospect southeast of Tyler in Smith County.
Tom Brown let a contract for an 80 sq mile 3D survey later this year on the Lost Prairie prospect, where drilling should start next year.
Another player, St. Mary Land & Exploration Co., Denver, hopes to be involved in a 3D seismic survey in the trend later this year. St. Mary holds a 23.75% interest in about 9,000 acres in Leon County east of an Amoco operated well that indicated productive capability.
Other operators working in the trend include American Cometra Inc., Fort Worth, and Sonat Exploration Co. and Belco Oil & Gas Co., Houston.
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