Milagro Oil & Gas, Inc. announced financial results for the second quarter ended June 30, 2012.
- Increased oil and natural gas liquids production to 3.1 MBopd for the quarter, an 11% volume increase over the prior year quarter
- Successfully drilled three development wells in the Magnet Withers Field and completed 30 capital workovers for a net production increase of 543 Boepd
To date Milagro has drilled or participated in eight wells in 2012. The key results include three wells drilled at the Magnet Withers Field (Wharton and Matagorda County, TX) and three high yield gas wells in the Barnett Shale (Wise County, TX).
The three wells drilled at Magnet Withers added 150% of the AFE estimated reserves and they were drilled for 13% under AFE cost estimates. The incremental daily production from these wells was approximately 440 Boepd.
Milagro participated with Devon in the drilling of a Barnett Shale high yield gas well in Wise County, TX, and the completion of one 2011 carryover well. The well drilled in the first half of 2012 is currently waiting to be fracked. The 2011 carryover well had an initial production rate of 3.2 MMcfpd. Since the end of the second quarter of 2012, a third well has been drilled and is currently being completed.
We are currently drilling a fourth Magnet Withers well and a well in Ellis County, OK which will test the Cottage Grove formation.
About Milagro Oil & Gas
Milagro Oil & Gas, Inc. is an independent energy company based in Houston, Texas that is engaged in the acquisition, development, exploitation, and production of oil and natural gas. The Company’s historic geographic focus has been along the onshore Gulf Coast area, primarily in Texas, Louisiana, and Mississippi. The Company operates a significant portfolio of oil and natural gas producing properties and mineral interests in this region and has expanded its footprint through the acquisition and development of additional producing or prospective properties in North Texas and Western Oklahoma.