DALLAS--(BUSINESS WIRE)--Jun. 5, 2013--
Matador Resources Company (NYSE: MTDR) ("Matador" or the "Company"), an
independent energy company engaged in the exploration, development,
production and acquisition of oil and natural gas resources, with a
particular emphasis on oil and natural gas shale plays and other
unconventional plays and with a current focus on its Eagle Ford
operations in South Texas and its Delaware Basin operations in Southeast
New Mexico and West Texas, today provided an update on various aspects
of its operations.
Matador announced an increase in its borrowing base to $280 million
based on its lenders’ review of the Company’s proved oil and natural gas
reserves at March 31, 2013, as well as the results of several recently
completed wells. At June 5, 2013, the Company had outstanding borrowings
of $230 million. Matador expects additional increases to its borrowing
base as the result of anticipated increases in its proved oil and
natural gas reserves throughout 2013.
The Company continues to build its leasehold position in Southeast New
Mexico and West Texas. In May 2013, the Company acquired approximately
3,500 gross and 2,300 net acres primarily in Lea and Eddy Counties, New
Mexico. This additional acreage gives Matador a total of 34,100 gross
and 22,500 net acres in Southeast New Mexico and West Texas, of which
the Company considers approximately 26,400 gross and 20,400 net acres to
be prospective for the Wolfcamp, Bone Spring and other oil and
liquids-rich targets.
Matador’s operations are progressing as outlined in the Company’s first
quarter earnings release provided on May 8, 2013. As expected, the
Company completed and has begun producing oil and natural gas from seven
operated and two non-operated Eagle Ford shale wells in the second
quarter of 2013. Three operated wells on the Company’s Cowey lease in
DeWitt County, Texas were completed and turned to sales in mid-May. Four
operated wells completed on Matador’s Martin Ranch lease in LaSalle
County were placed on production in late May. The Company has drilled
three additional wells from a single pad on its Sickenius lease in
Karnes County, but these wells will not be completed until late June and
will not be placed on production until early July. Initial production
results from the seven operated wells completed during the second
quarter met or exceeded the Company’s expectations, including its first
40-acre infill test at Martin Ranch.
In New Mexico, Matador has drilled its first well in the Delaware Basin
in Lea County, where it successfully collected extensive petrophysical
data, including a 182-ft whole core in the Wolfcamp section. The well
appears to have multiple completion targets, and the Company plans to
complete the well later in the summer once more of its petrophysical and
core analyses have been completed. The Company is currently drilling its
second test well in Lea County; the primary target of this well is the
Second Bone Spring. At June 5, 2013, Matador had two contracted drilling
rigs operating – one in Lea County, New Mexico and one in LaSalle
County, Texas.
Joseph Wm. Foran, Matador’s Chairman, President and CEO, commented, “We
are very pleased that our Eagle Ford wells continue to meet or exceed
our expectations. We are also very pleased to continue building our
acreage position in the Delaware Basin in New Mexico and West Texas and
are encouraged by the petrophysical data collected on our first well in
Lea County. We will continue to execute our initial three-well test
program in the Delaware Basin as planned, but are considering whether to
leave one rig operating in New Mexico throughout the remainder of the
year given our growing acreage position in the area. We continue to be
very satisfied with our recent Eagle Ford results and believe these
results reflect the continued progress we are making in our completion
and production operations. Finally, we are pleased to announce the
increase in our borrowing base, which will allow us to continue
executing our ongoing drilling programs in South Texas and the Delaware
Basin. Through the first five months of 2013, our entire results have
exceeded our initial expectations entering the year and remain
consistent with our updated guidance released on May 8, 2013. We
continue to note, however, that our production and financial results
from period to period are likely to be uneven and subject to various
operating conditions and operating practices followed by Matador. That
said, we are all excited about our progress and the outlook for the rest
of the year.”
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 a particular emphasis on oil and natural gas
shale plays and other unconventional resource plays. Its current
operations are focused primarily on the oil and liquids rich portion of
the Eagle Ford shale play in South Texas and the Wolfcamp and Bone
Spring plays in Southeast New Mexico and West Texas. Matador also
operates in the Haynesville shale and Cotton Valley plays in Northwest
Louisiana and East Texas.
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” and similar expressions that are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. 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; our ability to execute our business plan, including whether
our 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; our 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; our ability to make acquisitions on economically acceptable
terms; availability of sufficient capital to execute our business plan,
including from future cash flows, increases in our borrowing base and
otherwise; weather and environmental conditions; 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
SEC filings, 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 and does not intend 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.
Source: Matador Resources Company
Matador Resources Company
Mac Schmitz, 972-371-5225
Investor
Relations
mschmitz@matadorresources.com
