Lilis Energy Inc. plans to spud its first two Wolfcamp horizontal wells in the Delaware Basin, the Denver company said Sept. 21.
Earlier in 2016, Lilis Energy entered the Permian Basin after merging with Brushy Resources Inc., a San Antonio-based company with primary operations in West Texas. The deal was valued at about $35 million.
The spudding of the company's first two Wolfcamp wells commences the 12-well reentry horizontal development program targeting the Wolfcamp, Bone Springs and Avalon formations planned over the next 18 months.
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Both of Lilis' wells will be reentry horizontal completions that will utilize existing vertical wellbores by "cutting a window," providing the company with "significant cost savings," according to the release.
The company's first well, the Bison #1H, is expected to be a 6,000-ft lateral and is targeting the Wolfcamp formation. The wellbore has been prepped and Lilis expects to commence drilling activities on Oct. 1. After reaching total depth on the Bison #1H, the company plans for the rig to move directly to the next Wolfcamp reentry location, the Grizzly #1H.
After the conclusion of the drilling of the first two wells, the company plans to move forward with the completion phase. The Bison #1H will be targeting a planned proppant placement of 2,200 pounds per ft across 33 frack stages. The company expects to announce initial test results before year-end, the release said.
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