DENVER, Dec. 16, 2010 /PRNewswire/ -- Earthstone Energy,
Inc., formerly Basic Earth Science Systems, Inc. (Earthstone, Basic
or the Company) (OTC Bulletin Board: BSIC), reported the status of
three new Bakken wells that were in the planning stage in September
when the wells were disclosed at its Annual Shareholder Meeting.
The Fossum 15-35H, located in the Indian Hill Field,
McKenzie County, ND, has been
drilled, completed and is producing. This horizontal Bakken
well reached a total depth of 20,670 feet and is expected to cost a
total of approximately $6.4 million
for drilling and completion. The well is still on
confidential status and an initial production rate has not been
determined. However, the Company expects the well to have an
initial production rate of over 1,000 barrels of oil per day.
SM Energy, Inc., Denver, CO,
is the operator of the well and Earthstone has a 0.2679% working
interest.
The Ceynar 29-32H, located in the Banks Field, McKenzie County, ND, has been drilled
horizontally in the Bakken formation and reached a total depth of
21,068 feet. The well's tank battery is currently being
constructed in preparation to hydraulically stimulate the well.
Zenergy, Inc., Tulsa, OK, is
the operator of the well which is expected to cost a total of
$7.0 million for drilling and
completion. Earthstone has a 0.132% working interest in the
well and is expected to be on production by mid-February 2011.
The Mondak Federal 24X-12 is a horizontal Bakken well located in
the Mondak field, McKenzie County,
ND. The well reached a total depth of 20,890 feet and
is expected to cost a total of approximately $6.6 million for drilling and completion.
The well's tank battery has been constructed and completion
operations are currently underway. XTO Energy, Inc.,
Fort Worth, TX, is the operator of
the well and Earthstone has a 2.7813% working interest. The
well is expected to be on production by the end of January 2011.
In a surprise development, Earthstone was recently informed by
XTO Energy, Inc. that due to a land ownership error, the Company
has an interest in a third horizontal Bakken well in the Mondak
field. This well, the Mondak Federal 14X-11, was drilled and
completed in January and February
2010 and had an initial production rate of 1,175 barrels of
oil per day and 684 MCF gas per day. To date, the well has
cumulative production of over 45,000 barrels of oil and 25,000 MCF
of gas. Earthstone now has a 2.1779% working interest in the well.
The Company estimates its total cost for this well to be
approximately $150,000 and estimates
its share of cumulative production over the last eight months to
have contributed over $50,000 toward
payout of this cost.
Earthstone Energy, Inc. is an independent oil and gas
exploration and production company with primary operations in the
Williston Basin, the
Denver-Julesburg Basin in Colorado, southern Texas and the Gulf Coast area.
Earthstone Energy is traded on the Over The Counter Bulletin
Board under the symbol BSIC. Information on Earthstone Energy
can be found at its web site: www.earthstoneenergy.com.
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some
statements contained in this release are forward-looking, and
therefore involve uncertainties or risks that could cause actual
results to differ materially. Forward-looking statements also
include comments regarding the future importance of newly drilled
or recompleted wells. Factors that could cause actual results
to differ materially include price volatility of oil and gas,
estimated production rates and adjustments to ownership percentages
in addition to economic and political events affecting supply and
demand for oil and gas, loss of customers for oil and gas
production and government regulations. The Company disclaims
any obligation to update forward-looking statements.
SOURCE Earthstone Energy, Inc.