TXO Partners Announces 3 TCFE of Natural Gas Potential in the Mancos Shale of the San Juan Basin
TXO Partners (NYSE: TXO) has announced significant natural gas potential in its Mancos Shale operations within the San Juan Basin. The company holds a 58,500 contiguous-acre position with an estimated 3 TCFE of natural gas potential, potentially representing five times their current total reserve base.
The company has identified a tactical 3,520-acre block as Phase I for development, representing about 6% of their Mancos position. This initial phase is estimated to hold 200-300 Bcf of natural gas, with approximately 25 Bcfe estimated per drill well, potentially doubling their existing natural gas reserves.
Key advantages include water rights, company-owned surface & SWD facilities, and optionality for gas gathering systems. The acreage is held by production with no leasehold expiration dates, allowing TXO to develop and monetize at an economically opportune time.
TXO Partners (NYSE: TXO) ha annunciato un significativo potenziale di gas naturale nelle sue operazioni nel Mancos Shale all'interno del bacino di San Juan. L'azienda detiene una posizione continua di 58.500 acri con un potenziale stimato di 3 TCFE di gas naturale, il che potrebbe rappresentare cinque volte l'attuale base di riserve.
L'azienda ha identificato un blocco strategico di 3.520 acri come Fase I per lo sviluppo, che rappresenta circa il 6% della loro posizione nel Mancos. Questa fase iniziale è stimata contenere da 200 a 300 Bcf di gas naturale, con circa 25 Bcfe stimati per pozzo trivellato, il che potrebbe raddoppiare le loro attuali riserve di gas naturale.
I principali vantaggi includono diritti idrici, strutture di superficie e SWD di proprietà dell'azienda e opzioni per sistemi di raccolta del gas. L'area è mantenuta da produzione senza date di scadenza per i contratti di locazione, consentendo a TXO di sviluppare e monetizzare in un momento economicamente opportuno.
TXO Partners (NYSE: TXO) ha anunciado un potencial significativo de gas natural en sus operaciones en el Mancos Shale dentro de la Cuenca de San Juan. La compañía posee una posición continua de 58,500 acres con un potencial estimado de 3 TCFE de gas natural, que podría representar cinco veces su actual base total de reservas.
La empresa ha identificado un bloque táctico de 3,520 acres como Fase I para el desarrollo, que representa alrededor del 6% de su posición en Mancos. Se estima que esta fase inicial contenga entre 200 y 300 Bcf de gas natural, con aproximadamente 25 Bcfe estimados por pozo perforado, lo que podría duplicar sus reservas actuales de gas natural.
Las principales ventajas incluyen derechos de agua, instalaciones de superficie y SWD de propiedad de la empresa, y opciones para sistemas de recolección de gas. La superficie se mantiene mediante producción sin fechas de caducidad de arrendamiento, lo que permite a TXO desarrollar y monetizar en un momento económicamente propicio.
TXO Partners (NYSE: TXO)는 산 후안 분지 내 Mancos Shale에서 상당한 천연 가스 잠재력을 발표했습니다. 이 회사는 약 58,500 에이커의 연속적 위치를 보유하고 있으며, 이 지역의 천연 가스 잠재력은 3 TCFE로 추정됩니다. 이는 현재 보유하고 있는 총 비축량의 5배에 해당할 수 있습니다.
회사는 개발을 위한 3,520 에이커의 전술 블록을 1단계로 식별했으며, 이는 Mancos 위치의 약 6%에 해당합니다. 이 초기 단계는 200-300 Bcf의 천연 가스를 보유할 것으로 예상되며, 드릴링한 우물당 약 25 Bcfe가 추정되어 현재 보유한 천연 가스 비축량을 두 배로 늘릴 수 있습니다.
주요 장점으로는 수자원 권리, 회사 소유의 표면 및 SWD 시설, 그리고 가스 집합 시스템을 위한 선택권이 포함됩니다. 이 지역은 임대 종료 날짜가 없는 생산에 의해 보유되고 있어 TXO가 경제적으로 적절한 시기에 개발하고 자금을 조달할 수 있게 합니다.
TXO Partners (NYSE: TXO) a annoncé un potentiel significatif de gaz naturel dans ses opérations de Mancos Shale au sein du bassin de San Juan. L’entreprise détient une position contiguë de 58 500 acres avec un potentiel estimé de 3 TCFE de gaz naturel, ce qui pourrait représenter cinq fois leur base totale de réserves actuelle.
L’entreprise a identifié un bloc stratégique de 3 520 acres comme Phase I pour le développement, représentant environ 6 % de leur position Mancos. Cette phase initiale devrait contenir entre 200 et 300 Bcf de gaz naturel, avec environ 25 Bcfe estimés par puits foré, ce qui pourrait doubler leurs réserves de gaz naturel actuelles.
Parmi les principaux avantages figurent les droits en eau, les installations de surface et de SWD appartenant à l’entreprise, ainsi que des options pour des systèmes de collecte de gaz. La superficie est maintenue par la production sans dates d'expiration des baux, permettant à TXO de développer et de monétiser à un moment économiquement opportun.
TXO Partners (NYSE: TXO) hat ein erhebliches Potenzial für Erdgas in seinen Mancos Shale-Betrieben im San Juan-Becken angekündigt. Das Unternehmen hält eine zusammenhängende Fläche von 58.500 Acres mit einem geschätzten Potenzial von 3 TCFE Erdgas, was potenziell das Fünffache ihrer aktuellen Gesamtreserve darstellt.
Das Unternehmen hat ein strategisches Block von 3.520 Acres als Phase I für die Entwicklung identifiziert, was etwa 6% ihrer Fläche im Mancos ausmacht. Diese erste Phase wird auf 200-300 Bcf Erdgas geschätzt, mit etwa 25 Bcfe, die pro Bohrloch geschätzt werden, was ihr bestehendes Erdgasreserven potenziell verdoppeln könnte.
Wichtige Vorteile umfassen Wasserrechte, firmeneigene Oberflächen- und SWD-Anlagen sowie Optionen für Gassammelsysteme. Das Grundstück wird durch Produktion gehalten, ohne dass Leasinglaufzeiten ablaufen, sodass TXO zu einem wirtschaftlich geeigneten Zeitpunkt entwickeln und monetisieren kann.
- Significant natural gas potential of 3 TCFE across 58,500 acres
- Phase I development could double existing natural gas reserves
- 25+ Bcf potential per well in Phase I development
- No leasehold expiration dates on acreage
- Existing infrastructure including water rights and gas gathering systems
- Development timeline dependent on commodity prices
- Significant capital investment required for development
Insights
The announcement of 3 TCFE (trillion cubic feet equivalent) of natural gas potential in TXO's Mancos Shale acreage represents a substantial resource discovery. The 58,500 contiguous-acre position could potentially increase TXO's reserve base by up to 5x, marking a transformative development for this
The Phase I development targeting 3,520 acres is particularly noteworthy, with projected reserves of 200-300 Bcf and estimated production of 25 Bcfe per well. These metrics align with successful Mancos Shale developments in the region. The held-by-production status eliminates lease expiration pressure, allowing TXO to optimize development timing based on market conditions.
Key advantages include existing infrastructure access, water rights and company-owned surface rights, which significantly reduce development costs and operational risks. The concentrated acreage position enables efficient development through pad drilling and shared infrastructure.
From a strategic perspective, TXO's positioning in the Mancos Shale demonstrates exceptional foresight given the evolving natural gas market dynamics. The company's patient approach - waiting for optimal commodity prices before development - shows prudent capital management. Their phased development strategy, starting with just
The potential to nearly double existing natural gas reserves through Phase I alone provides significant operational leverage and future growth visibility. This asset could transform TXO from a steady dividend payer into a growth-plus-income story, potentially warranting a higher market multiple. The combination of existing cash flow streams supporting distributions while holding this substantial development inventory creates an attractive investment proposition in the current market environment.
TXO San Juan Mancos Acreage. (Photo: Business Wire)
“TXO has built a portfolio of oil and gas rich assets with tremendous potential for development. The confidence we have in the performance of these properties provides the foundation for our premium distribution company,” stated Bob R. Simpson, Chairman and CEO. “With this perspective, our technical team has identified another extraordinary play within TXO’s vast operated production base. The Mancos Shale is an upcoming, giant natural gas field where we hold a 58,500 contiguous- acre position that is held by production. The target holds nearly 3 Tcfe of natural gas potential. On an oil equivalent basis, we believe this could represent as much as five times our current total reserve base. The catalyst for action in developing this project is commodity price, and we anticipate strong natural gas economics ahead.”
“We believe the Mancos Shale development will be a game-changer for our reserve holdings and production potential,” continues Gary D. Simpson, President of Production and Development. “TXO acreage and operations reside in prime position. Offset drilling on adjoining acreage has confirmed well results. Given all the important criteria—reservoir characteristics, acreage location, productivity data, and infrastructure access—we have identified a tactical 3,520-acre block as Phase I for developing and monetizing reserves, representing about
For perspective, Exhibit A reflects the summary of our Mancos Play Phase I project within the scope of the total 3 Tcfe of captured potential, which is in excess of 58,000 contiguous acres. The ongoing cash flow from all activities will be allocated to capital investment decisions, unit distributions, and debt management.
Overall Natural Gas Resource Potential – 3 TCFE across 58,500 acres
Within basin, TXO has water rights, company owned surface & SWD, and optionality for key gas gathering systems.
Phase 1 Summary
-
~3,520 ac = <
6% of TXO’s Total Mancos Acreage Position - 8-12, 15K’ Wells - 25+ bcf per Well
- 200-300 Bcf Gross Reserves expected
About TXO Partners, L.P.
TXO Partners, L.P. is a master limited partnership focused on the acquisition, development, optimization and exploitation of conventional oil, natural gas, and natural gas liquid reserves in
Cautionary Statement Concerning Forward-Looking Statements
Certain statements contained in this press release constitute “forward- looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include the words such as “may,” “assume,” “forecast,” “could,” “should,” “will,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “expect,” “project,” “budget” and similar expressions, although not all forward-looking statements contain such identifying words. These forward-looking statements include the resource potential of our acreage in the Mancos Play of the
Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, TXO does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for TXO to predict all such factors.
Cautionary Note to Investors
The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that meet the SEC's definitions for such terms. TXO may use certain broader terms such as “natural gas potential,” “natural gas resource potential,” “gross reserves,” “total reserve base” and “total possible value” in its communications to investors that the SEC's guidelines strictly prohibit TXO from including in filings with the SEC. These types of estimates do not represent, and are not intended to represent, any category of reserves based on SEC definitions, are by their nature more speculative than estimates of proved, probable and possible reserves and do not constitute "reserves" within the meaning of the SEC's rules. These estimates are subject to greater uncertainties, and accordingly, are subject to a substantially greater risk of actually being realized. Investors are urged to consider closely the disclosures and risk factors in the reports TXO files with the SEC.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250115268438/en/
TXO Partners
Brent W. Clum
President, Business Operations & CFO
817.334.7800
ir@txopartners.com
Source: TXO Partners, L.P.
FAQ
What is the total natural gas potential announced by TXO in the Mancos Shale?
How much natural gas reserves are expected in TXO's Phase I development?
What is the expected production per well in TXO's Mancos Shale Phase I project?
What percentage of TXO's Mancos acreage does Phase I development represent?
What infrastructure advantages does TXO have in the San Juan Basin Mancos Shale?
