DALLAS--(EON: Enhanced Online News)--Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Delaware Basin operations in Southeast New Mexico and West Texas, today announced initial test results from the three Mallon 27 Federal Com (“Mallon”) wells recently drilled and completed in its Ranger asset area in Lea County, New Mexico.
“Mallon 27 Federal Com #2H Third Bone Spring 2,427 1,387 2,658 91% 1,414 34/64”
Mallon Well Results – Ranger Asset Area
Matador is pleased today to announce the 24-hour initial potential test results from three recent completions in its Ranger asset area in Lea County, New Mexico. These three wells, the Mallon 27 Federal Com #1H, #2H and #3H, are the first three Matador-operated wells drilled on the acreage acquired from Harvey E. Yates Company (“HEYCO”) in February 2015. All three wells are located in Sections 27 and 22, Township 19S, Range 34E in Lea County, New Mexico, and all were completed in the Third Bone Spring sand.
The 24-hour initial potential test results from each well are summarized in the table below.
|Mallon 27 Federal Com #1H||Third Bone Spring||2,500||1,680||2,780||90%||1,327||34/64"|
|Mallon 27 Federal Com #2H||Third Bone Spring||2,427||1,387||2,658||91%||1,414||34/64"|
|Mallon 27 Federal Com #3H||Third Bone Spring||2,245||1,035||2,418||93%||1,482||32/64"|
|(1) Flowing casing pressure.|
In aggregate, the three wells flowed 7,856 barrels of oil equivalent per day, consisting of 7,172 barrels of oil per day and 4.1 million cubic feet of natural gas per day (91% oil). Matador has just over a 70% working interest in each of the Mallon wells. Owing to a large portion of federal acreage comprising each unit, the Company’s royalty burden in each unit is approximately 18.5% (as opposed to up to 25% on typical fee leasehold), giving Matador an overall net revenue interest of approximately 58% in each of these wells. As Matador noted at the time of the HEYCO merger, the Company expects to benefit from lesser royalty burdens on wells drilled on the former HEYCO acreage.
Each of the three Mallon wells are 7,300-ft horizontal laterals, and each has a completed lateral length of approximately 7,000 ft. Each well was completed with a 29-stage fracture treatment, including approximately 40 barrels of fluid and 3,000 pounds of primarily 20/40 mesh white sand per lateral foot. These were the largest fracture treatments pumped to date by Matador in a Bone Spring completion.
The location of the Mallon wells is shown on the accompanying map. At February 2, 2017, Matador is operating four rigs on its Delaware Basin acreage, including one rig in the Ranger/Arrowhead asset area. Matador expects to keep one rig running in its Ranger/Arrowhead asset area throughout 2017.
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are pleased to announce the results of the Mallon wells, which are among the very best wells Matador has drilled in the Delaware Basin. These wells, in addition to other non-operated wells in which we have participated since the HEYCO merger, highlight the prospectivity of our northern acreage. We are excited to further delineate and develop this portion of our Delaware Basin acreage. We continue to be pleased with our drilling results throughout the Delaware Basin, and we look forward to discussing the results of the Mallon wells and other operational highlights in our fourth quarter and year-end earnings call later this month.”
About Matador Resources Company
Matador is an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources in the United States, with an emphasis on oil and natural gas shale and other unconventional plays. Its current operations are focused primarily on the oil and liquids-rich portion of the Wolfcamp and Bone Spring plays in the Delaware Basin in Southeast New Mexico and West Texas. Matador also operates in the Eagle Ford shale play in South Texas and the Haynesville shale and Cotton Valley plays in Northwest Louisiana and East Texas. Additionally, Matador conducts midstream operations in support of its exploration, development and production operations and provides natural gas processing, natural gas, oil and salt water gathering services and salt water disposal services to third parties on a limited basis.
For more information, visit Matador Resources Company at www.matadorresources.com.
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