Through separate transactions with several private parties, the company has increased its Fort Trinidad holdings to 36,498 gross acres or 20,526 net acres. Prior to the acquisition, TXCO held interests in approximately 18,000 gross acres or 8,000 net acres.
The acquisition includes 8.1 billion cubic feet equivalent of proved reserves at the end of 2007, purchased at an average cost of $2.06 per thousand cubic feet equivalent.
The Fort Trinidad field, part of TXCO’s 2007 acquisition of Output Exploration, is located in portions of the Houston, Madison and Leon counties of Texas and is prospective from multiple producing formations in the East Texas Basin.
The company’s drilling program targets Fort Trinidad’s gas-charged Glen Rose shoals. Its first Glen Rose shoal has gone on production while a second well is being drilled. The company plans to have a second rig working in the area by mid-April 2008.
