By OGJ editors
HOUSTON, Feb. 18 -- The Exploration Co., San Antonio, expanded its acreage holdings in the Maverick basin in Southwest Texas and added numerous drilling prospects in the Georgetown, Glen Rose, San Miguel, Olmos coalbed methane and deep Jurassic plays.
An asset exchange agreement expanded the holdings to 665,900 leased acres and 61,100 acres under seismic option.
Under an agreement with Arrow River Energy LP and CMR Energy LP, both of Houston, TXCO received a 50% working interest in all depths and formations in 174,460 gross acres in Maverick, Dimmit, and Zavala counties south and east of and
mostly contiguous with TXCO's existing acreage block (see map, OGJ, Oct. 4, 2004, p. 30). TXCO received 140 sq miles of recently acquired 3D seismic data over part of the new acreage.
TXCO will serve as operator, and Arrow River reserved an after-payout, term net-profits interest in new wells drilled on the new acreage.
In exchange, Arrow River and CMR collectively received a 50% working interest in 106,500 acres comprised of three tracts in TXCO's existing acreage block. These include shallow depths to the base of the San Miguel formation under 95,300 acres of the Comanche Ranch lease, shallow depths to the base of the San Miguel under 7,900
acres of the Chittim B lease, and all depths under the 3,300-acre Chittim C lease.
CMR, which currently serves as operator on deeper portions of the Comanche Ranch lease, will assume operations on these tracts and all existing shallow wells.
