Printer Friendly

United States : Earthstone Energy, Inc. Provides Operations and 2017 Guidance Updates.

Earthstone Energy, Inc ("Earthstone" or the "Company"), today provided an operations update. As previously reported, the Earthstone - Bold combination closed on May 9, 2017. On a combined pro forma basis, second quarter 2017 production was approximately 10,623 Boepd (66% oil, 84% liquids), with Earthstone producing approximately 4,541 Boepd (65% oil, 81% liquids) and Bold producing 6,082 Boepd (67% oil, 86% liquids) during the quarter.

Earthstone continues to operate a single rig in Reagan County, Texas with plans to maintain this rig throughout the year. The Company has just completed drilling the last well of a three well pad on the TSRH 28S Unit (100% working interest). At present, there are four wells waiting on completion given the previously drilled Bold WTG Unit 4-232 #1H well (100% working interest). Completions on the three well TSRH 28S Unit are expected to begin in August.

The Company brought four gross (2.9 net) horizontal Wolfcamp wells online during the second quarter. These wells averaged 8,069 feet of completed lateral length with 49 stages and 2,269 pounds of proppant per foot. In western Reagan County, the Company brought online its first two wells (92.5% working interest) in the Sinclair project being the Bold Sinclair Unit 8 #1H in the Wolfcamp Lower B and the Bold Sinclair Unit 8B #3HM in the Wolfcamp Upper B. These wells had an average peak 30-day initial production ("IP") rate of 918 Boepd (86% oil) for an average IP30/1000 ft. of 116 Boepd. In central Reagan County, the Company brought online the Texaco-Coates A Unit 3 #1 HM and Texaco-Coates A Unit 4 #1 HM (both 50% working interests). Both wells were completed in the Wolfcamp Upper B and are approximately 660 feet apart to further validate spacing. These wells had an average peak 30-day IP rate of 868 Boepd (87% oil) for an average IP30/1000 ft. of 105 Boepd.

During the second quarter, Earthstone entered into a Joint Development Agreement ("JDA") for approximately 1,840 gross (625 net) acres in southern Gonzales County, Texas with a financial partner. This JDA reduced the Company's interests in the Davis, Cannon East and Pilgrim Units. The financial partner is obligated to pay a promoted (higher) share of the capital expenditures on six wells (one of which is scheduled for 2018) to earn 50% of the interest in these units and adjacent acreage. Earthstone drilled a two well pad in the Davis Unit (16.7% retained working interest) and three wells in the Pilgrim Unit (18.9% retained working interest). The JDA reduced Earthstone's 2017 Eagle Ford capital exposure by approximately $7 million, inclusive of wells and facilities. In addition, the Company is currently drilling its six-well Crosby pad (50% working interest) in southern Gonzales County. These 11 wells will conclude the Company's 2017 Eagle Ford drilling program.

2017 Guidance Update

Earthstone is maintaining its projected 2017 production exit rate, while reducing capital expenditures and has adjusted projected average daily production for 2017. The modest adjustment to 2017 average daily production recognizes the actual closing date of the transaction with Bold. Earthstone's projected exit rate assumes it initiates completion operations on its TSRH 28S Unit in late August, and thereafter, build up an inventory of wells in the Midland basin before commencing additional completions. Further, Earthstone intends to begin its Eagle Ford completions in September on its Davis and Pilgrim units and then proceed to the Crosby Unit. While the operated Midland Basin capital expenditure estimate only reflects a one rig program, pending commodity prices, Earthstone is planning to deploy a second operated Midland Basin rig in the first quarter of 2018 to further accelerate drilling and completion activities. The following guidance is subject to potentially significant change due to commodity prices, service and equipment costs, continued results of drilling and completion activities, and general industry conditions.

[c] 2017 Al Bawaba ( Provided by SyndiGate Media Inc. ( ).
COPYRIGHT 2017 SyndiGate Media Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2017 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Mena Report
Date:Jul 22, 2017
Previous Article:United States : RadWise Accredited as Qualified Clinical Decision Support Mechanism by CMS for Advanced Diagnostic Imaging Services.
Next Article:Canada : Enbridge Inc. to Host a Joint Webcast with Enbridge Income Fund Holdings Inc., Enbridge Energy Partners, L.P. & Spectra Energy Partners, LP...

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters