DALLAS--(BUSINESS WIRE)--Jul. 30, 2014--
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 an
emphasis on oil and natural gas shale and other unconventional plays and
with a current focus on its Eagle Ford operations in South Texas and its
Permian Basin operations in Southeast New Mexico and West Texas, today
is pleased to announce the 24-hour initial potential test results of two
of its most recent wells completed in the Permian Basin – the Norton
Schaub #1H well and the Pickard State 20-18-34 #1H well, each of which
has been producing less than 30 days. Matador is also pleased to provide
an update on its growing leasehold position in the Permian Basin.
24-Hour Initial Potential Test Results
In the Wolf prospect area of Loving County, Texas, the Norton Schaub #1H
well flowed 1,026 BOE per day, including 706 Bbl of oil per day and
1,922 Mcf of natural gas per day (69% oil), at 3,000 pounds per square
inch (“psi”) surface pressure on a 22/64th inch choke during
its 24-hour initial potential test in mid-July 2014. This well was
completed in the upper portion of the Wolfcamp formation, the Wolfcamp
“A,” at approximately 10,800 feet vertical depth. Matador drilled a
4,700-ft horizontal lateral in the Norton Schaub #1H and completed this
well with 20 frac stages, including approximately 200,000 Bbl of fluid
and 9.8 million pounds of sand. This well is the Company’s second
successful test of the Wolfcamp “A” formation in its Wolf prospect. The
Norton Schaub #1H was drilled near and to the northwest of Matador’s
original well on the Wolf prospect, the Dorothy White #1H, which has
produced 175,000 BOE, including 115,000 Bbl of oil (66% oil), in about
seven months on production. Based on the success of these two wells,
Matador intends to keep one of its two Permian Basin drilling rigs
operating full-time in the Loving County area.
In the Ranger prospect area in Lea County, New Mexico, the Pickard State
20-18-34 #1H well flowed 592 BOE per day, including 535 Bbl of oil per
day and 340 Mcf of natural gas per day (90% oil), at 750 psi surface
pressure on a 22/64th inch choke during its 24-hour initial
potential test in late July 2014. This well was completed in the Second
Bone Spring sand at approximately 9,900 feet vertical depth. Matador
drilled a 4,100-ft horizontal lateral in the Pickard State 20-18-34 #1H
and completed this well with 17 frac stages, including approximately
167,000 Bbl of fluid and 7.3 million pounds of sand. This well is the
Company’s second positive test of the Second Bone Spring sand in the
Ranger prospect area, and early indications are that this well may be
comparable to or better than Matador’s initial Second Bone Spring well,
the Ranger 33 State Com #1H, which has produced 123,000 BOE, including
113,000 Bbl of oil (91% oil), in about nine months on production. The
Pickard State 20-18-34 #1H well flowed oil at higher rates and at higher
flowing pressures much earlier on comparable chokes, as compared to the
Ranger 33 State Com #1H. At July 30, 2014, Matador’s total acreage
position in the Ranger prospect area was approximately 14,600 gross
(10,200 net) acres.
Acreage Acquisitions
Matador began 2014 with approximately 70,800 gross (44,800 net) acres in
the Permian Basin in Southeast New Mexico and West Texas. Between
January 1 and July 30, 2014, Matador acquired an additional 23,200 gross
(17,200 net) acres in this area, primarily in Loving County, Texas and
in Lea and Eddy Counties, New Mexico. Including these acreage
acquisitions at July 30, 2014, Matador’s total Permian Basin acreage
position is approximately 94,000 gross (62,000 net) acres. Of particular
note, the Company holds 11,200 gross (7,200 net) acres in the Loving
County area (including a few small tracts in Reeves and Ward Counties)
at July 30, 2014. Matador has effectively doubled its leasehold position
in the Loving County area since January 1, 2014, including the addition
of 1,800 gross (1,700 net) acres located adjacent to its Wolf prospect
area, and has increased its overall position in the Delaware portion of
the Permian Basin by approximately 33%.
Ongoing Permian Operations
At July 30, 2014, Matador had two drilling rigs operating in the Permian
Basin – one drilling the Johnson 44-02S-B53 WF #204H well, a Wolfcamp
“A” test in the Wolf prospect area in Loving County, Texas, and one
drilling the Jim Rolfe 22-18S-34E RN #231H, the Company’s first Third
Bone Spring sand test in the Ranger prospect area in Lea County, New
Mexico. Matador has just begun flowing back its Pickard State 20-18-34
#2H well, a Wolfcamp “D” test in the Ranger prospect area. In addition,
the Arno #1H well, a Wolfcamp “A” test in the Wolf prospect area, has
been drilled and completion operations on that well should begin in
mid-August. Matador plans to provide updates on both the Pickard State
20-18-34 #2H and Arno #1H wells later in the third quarter as well as an
update on its other operations and well results in the area.
Chairman’s Remarks
Joseph Wm. Foran, Matador’s Chairman and CEO, commented, “Our Permian
Basin program continues to deliver strong results, and we are very
pleased today to report the initial results of the Norton Schaub #1H and
the Pickard State 20-18-34 #1H wells. Our leasehold position in the
Permian Basin continues to grow as this becomes an exciting new
operating area for Matador. We will continue to operate two rigs in the
Permian Basin throughout the remainder of 2014 – one in Loving County,
Texas and the other primarily in Lea and Eddy Counties, New Mexico – as
we further delineate and validate our acreage position. Given these most
recent well results, Matador has decided to further accelerate our
Permian drilling program by adding at least one additional rig at the
beginning of 2015.”
Second Quarter Earnings Release and Conference Call Information
Matador plans to release second quarter 2014 operational and financial
results after the close of trading on Wednesday, August 6, 2014.
Management will also host a live conference call on Thursday, August 7,
2014 at 9:00 a.m. Central Time to review second quarter 2014 financial
results and operational highlights.
To access the conference call, domestic participants should dial (866)
543-6403 and international participants should dial (617) 213-8896. The
participant passcode is 49110829. The conference call will also be
available through the Company’s website at www.matadorresources.com
on the Presentations & Webcasts page under the Investors tab. Domestic
participants accessing the telephonic replay should dial (888) 286-8010
and international participants should dial (617) 801-6888. The
participant passcode is 79228151. The replay for the event will also be
available on the Company’s website at www.matadorresources.com
through Friday, August 29, 2014.
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 Eagle Ford shale play in
South Texas and the Wolfcamp and Bone Spring plays in the Permian Basin
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; 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; its ability to make acquisitions on economically acceptable
terms; 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; 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
