Matador Resources Company (NYSE: MTDR) (“Matador” or the
“Company”) today announced the results from the first four Boros
wells completed and turned to sales in its Stateline asset area in
Eddy County, New Mexico.
Initial Boros Well Results in the Stateline Asset
Area
Matador is pleased today to announce the results from the first
four Boros wells completed and turned to sales in the Company’s
Stateline asset area in southeastern Eddy County, New Mexico, all
of which are two-mile laterals. Matador acquired the 2,800 gross
and net acres comprising its Stateline asset area in the September
2018 Bureau of Land Management lease sale, and these are the first
four of 13 Boros wells the Company has drilled and completed on the
eastern portion of this leasehold. Matador remains on track to turn
all of the remaining Boros wells to sales over the next two weeks
as originally planned and previously announced.
The following table highlights the 24-hour initial potential
(“IP”) test results from the first four Boros wells.
Completion
24-hr IP
BOE/d /
Oil
Asset Area/Well Name
Interval
(BOE/d)
1,000 ft.(1)
(%)
Comments
Stateline, Eddy County, NM
Boros #201H
Wolfcamp A-XY
3,143
322
60%
Tested 1,873 Bbl of oil per day and 7.6
MMcf of natural gas per day.
Boros #215H
Wolfcamp A-Lower
4,584
460
60%
Tested 2,750 Bbl of oil per day and 11.0
MMcf of natural gas per day.
Boros #216H
Wolfcamp A-Lower
3,569
357
59%
Tested 2,113 Bbl of oil per day and 8.7
MMcf of natural gas per day.
Boros #217H
Wolfcamp A-Lower
3,128
315
50%
Tested 1,553 Bbl of oil per day and 9.4
MMcf of natural gas per day.
(1) 24-hr IP per 1,000 feet of completed lateral length.
Matador is very pleased with these strong IP test results from
the first four Boros wells. The IP test results from the Boros
#215H, #216H and #217H wells are three of the top four IP test
results that Matador has achieved to date for wells completed and
turned to sales in the Wolfcamp A-Lower formation throughout the
Delaware Basin. In fact, the Boros #215H test result is the
best IP test result that Matador has
achieved for the Wolfcamp A-Lower formation and is among the very
highest IP test results that Matador has achieved for any formation in the Delaware Basin. The Boros
#201H test result is also among the top five IP test results that
Matador has achieved for wells completed and turned to sales in the
Wolfcamp A-XY formation. Matador has a 100% working interest and an
87.5% net revenue interest in these Stateline asset area wells.
In addition, these 24-hour IP test results were recorded at very
high flowing casing pressures of
approximately 3,100 pounds per square inch (“psi”) for the Boros
#201H well and between 3,500 and 3,800 psi for each of the Wolfcamp
A-Lower completions, further indicating the strong productivity of
these wells. As noted above, Matador expects to have all of the
remaining Boros wells on-line over the next two weeks, and in fact,
several additional wells have already been placed on production and
are currently cleaning up and beginning to produce oil and natural
gas. Matador currently estimates that it has at least 75 additional
wells to drill in the Stateline asset area, including the 13 Voni
wells currently being drilled on the western portion of this
leasehold.
All four Boros wells highlighted in this release are currently
producing at restricted flow rates through the Company’s newly
constructed production facilities in the Stateline asset area, and
all oil, natural gas and water from these wells is being gathered
via pipeline. With the addition of these wells to the gathering
systems owned by San Mateo, Matador’s 51% owned midstream
affiliate, Matador currently has approximately 75% of its gross
operated oil production and approximately 98% of its gross operated
water production gathered via pipeline in the Delaware Basin. The
Company’s gross operated oil production gathered via pipeline in
the Delaware Basin has increased to approximately 75% today from
55% in 2019 and 16% in 2018. Similarly, Matador’s gross operated
water production gathered via pipeline in the Delaware Basin has
increased to approximately 98% today from 78% in 2019 and 71% in
2018.
Matador is also very pleased to report that the costs to drill
and complete all 13 Boros wells in the Stateline asset area
averaged just under $800 per completed lateral foot, saving more
than 20% in costs as compared to Matador’s original estimates. The
drilling and completion costs for the three shallowest wells, one
Avalon completion and two Second Bone Spring completions, averaged
approximately $725 per completed lateral foot. These costs are
among the lowest drilling and completion costs per lateral foot
that Matador has achieved to date in the Delaware Basin. The
economic returns from all these wells should be significantly
enhanced by the lower well costs. Furthermore, these results, along
with numerous others that Matador has achieved in 2020, including
from the Rodney Robinson and Ray State wells, continue to
demonstrate the improved capital efficiency the Company has
achieved through its successful transition from drilling and
completing one-mile laterals to drilling and completing two-mile or
longer laterals in the Delaware Basin.
Management Comments
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “We are
very excited and gratified by the strong results from our first
four Boros wells in the Stateline asset area, including our record
Wolfcamp A-Lower IP test results on the Boros #215H, #216H and
#217H wells. We look forward to putting the remaining Boros wells
drilled and completed throughout 2020 on production and reporting
those results to the markets in the upcoming weeks. We are, of
course, particularly pleased by the drilling and completion costs
achieved on these wells at under $800 per completed lateral foot,
which were well below our expectations when we began drilling these
wells. With the 13 Boros wells turned to sales, we are expecting a
significant increase in our oil and natural gas production during
the fourth quarter of 2020 and are also on track to be free cash
flow positive in the fourth quarter, a major milestone.
“The Board and I wish to thank and compliment all of the members
of our Stateline asset team, as well as our production teams in the
field, for all their planning, innovation and hard work over the
past two years to achieve first production from the Stateline asset
area. This has truly been a team effort, and we are very proud of
our geologic, reservoir, land, operations and midstream staff for
the significant value each of these groups has individually created
in the Stateline asset area through their technical expertise and
strong execution. These wells are expected to add significantly to
the overall value of Matador’s reserves and to the value of
Matador’s midstream affiliate, San Mateo, going forward.”
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. Additionally,
Matador conducts midstream operations, primarily through its
midstream joint venture, San Mateo, in support of its exploration,
development and production operations and provides natural gas
processing, oil transportation services, natural gas, oil and salt
water gathering services and salt water disposal services to third
parties.
For more information, visit Matador Resources Company at
www.matadorresources.com.
Forward-Looking Statements
This press release includes “forward-looking statements” within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. “Forward-looking statements” are statements related to
future, not past, events. Forward-looking statements are based on
current expectations and include any statement that does not
directly relate to a current or historical fact. In this context,
forward-looking statements often address expected future business
and financial performance, and often contain words such as “could,”
“believe,” “would,” “anticipate,” “intend,” “estimate,” “expect,”
“may,” “should,” “continue,” “plan,” “predict,” “potential,”
“project,” “hypothetical,” “forecasted” and similar expressions
that are intended to identify forward-looking statements, although
not all forward-looking statements contain such identifying words.
Such forward-looking statements include, but are not limited to,
statements about guidance, projected or forecasted financial and
operating results, future liquidity, results in certain basins,
objectives, project timing, expectations and intentions, regulatory
and governmental actions and other statements that are not
historical facts. Actual results and future events could differ
materially from those anticipated in such statements, and such
forward-looking statements may not prove to be accurate. These
forward-looking statements involve certain risks and uncertainties,
including, but not limited to, the following risks related to
financial and operational performance: general economic conditions;
the Company’s ability to execute its business plan, including
whether its drilling program is successful; changes in oil, natural
gas and natural gas liquids prices and the demand for oil, natural
gas and natural gas liquids; its ability to replace reserves and
efficiently develop current reserves; costs of operations; delays
and other difficulties related to producing oil, natural gas and
natural gas liquids; delays and other difficulties related to
regulatory and governmental approvals and restrictions; its ability
to make acquisitions on economically acceptable terms; its ability
to integrate acquisitions; availability of sufficient capital to
execute its business plan, including from future cash flows,
increases in its borrowing base and otherwise; weather and
environmental conditions; the impact of the novel coronavirus, or
COVID-19, pandemic on oil and natural gas demand, oil and natural
gas prices and our business; the operating results of the Company’s
midstream joint venture’s expansion of the Black River cryogenic
processing plant, including the timing of the further expansion of
such plant; the timing and operating results of the buildout by the
Company’s midstream joint venture of oil, natural gas and water
gathering and transportation systems and the drilling of any
additional salt water disposal wells, including in conjunction with
the expansion of the midstream joint venture’s services and assets
into new areas in Eddy County, New Mexico; and other important
factors which could cause actual results to differ materially from
those anticipated or implied in the forward-looking statements. For
further discussions of risks and uncertainties, you should refer to
Matador’s filings with the Securities and Exchange Commission
(“SEC”), including the “Risk Factors” section of Matador’s most
recent Annual Report on Form 10-K and any subsequent Quarterly
Reports on Form 10-Q. Matador undertakes no obligation to update
these forward-looking statements to reflect events or circumstances
occurring after the date of this press release, except as required
by law, including the securities laws of the United States and the
rules and regulations of the SEC. You are cautioned not to place
undue reliance on these forward-looking statements, which speak
only as of the date of this press release. All forward-looking
statements are qualified in their entirety by this cautionary
statement.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200922005375/en/
Mac Schmitz Capital Markets Coordinator (972) 371-5225
investors@matadorresources.com
Matador Resources (NYSE:MTDR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Matador Resources (NYSE:MTDR)
Historical Stock Chart
From Sep 2023 to Sep 2024