Lonestar Resources US Inc. (NASDAQ: LONE) on June 21 provided impressive results from its Wildcat B #1H well located in Brazos County, Texas, in the eastern Eagle Ford Shale.
The Wildcat B #1H well, which has now been on production for 40 days, has established a 30-day production rate of 2,123 barrels of oil equivalent per day (boe/d), Lonestar said. Previously, the Fort Worth, Texas-based company had announced initial test rates of 1,475 boe/d for the well.
Mike Kelly, head of E&P research at Seaport Global Securities, said the 30-day rates for Lonestar's eastern Eagle Ford well was "eye-popping."
"We find these early results extremely encouraging and we’ll be watching carefully for extended rates as we believe the well carries greater than 40% internal rate of return potential assuming our conservative commodity outlook [of $40/bbl oil, $2.50/Mcf gas] and $7.5 million well costs [in-line with the Wildcat’s cost]," Kelly said in a June 22 report.
The Wildcat B #1H well was drilled and completed to a total measured depth of 19,800 ft (about 11,000 ft true vertical depth) and fracture stimulated with a total of 16.6 million pounds of proppant over a perforated interval of 8,166 ft (2,028 pounds per ft) in 41 stages on a 20/64 in. choke.
The well's 30-day production rate consisted of 890 barrels (bbl/d) of oil (42%), 764 bbl/d of NGL (36%) and 2,815 Mcf/d of natural gas (22%), according to a company press release.
Frank D. Bracken III, Lonestar's CEO, said the company is currently interpreting 3-D seismic data over its Wildcat leasehold where Lonestar has leases covering 9,555 gross (6,420 net) acres.
RELATED: Lonestar Resources’ Deal Doubles Eagle Ford Leasehold
"Thereafter, we will formulate our development plan for this area, which holds significant production and reserve potential for our company," Bracken said in a statement.
Lonestar holds 46 drilling locations based on 800-ft spacing. At year-end 2016, the company had not recorded any proved reserves to this area, the release said.
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