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Matador Resources company provides operational update

Matador Resources company provides operational update


November 23rd, 2013


Matador Resources company provides operational update

Thursday, Feb 13, 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 provided an update on various aspects of its business.

Permian Basin Operations and Acreage Update

Matador is pleased to announce that its first horizontal well in Loving County, Texas, the Dorothy White #1H well, flowed 1,355 barrels of oil equivalent (“BOE”) per day, including 902 barrels (“Bbl”) of oil per day and 2.7 million cubic feet (“MMcf”) of natural gas per day (67% oil), at 3,711 psi on a 22/64-in choke during a 24-hour initial potential test. The Dorothy White #1H well is completed in the top portion of the Wolfcamp formation, the Wolfcamp “A”, at approximately 10,700-ft vertical depth, which is a highly geopressured interval having an estimated bottomhole pressure gradient of 0.8 psi/ft, implying a reservoir pressure of approximately 8,500 psi. Matador drilled and completed a 5,000-ft horizontal lateral in the Wolfcamp “A” and completed the well with 20 frac stages including approximately 200,000 Bbl of fluid and 9.8 million pounds of sand. The Dorothy White #1H well has not yet been on production for a full 30 days, but during the past three weeks, the well flowed at an average of 1,043 BOE per day, including 693 Bbl of oil per day and 2.1 MMcf of natural gas per day at approximately 3,600 psi, mostly on smaller chokes of 18/64-in to 20/64-in.

Matador continues to be pleased by the early performance of its first horizontal well in Lea County, New Mexico, the Ranger 33 State Com #1H. This well is a 4,300-ft horizontal lateral drilled and completed in the Second Bone Spring sand with 18 frac stages, including 165,000 Bbl of fluid and 7.5 million pounds of sand. The well was placed on production at the end of October 2013 and has continued to exhibit strong performance since that time. The well produced a total of approximately 15,000 Bbl of oil in December 2013 despite being shut in for several days while tubing and gas lift valves were installed. In January 2014, the well produced 15,400 Bbl of oil despite being shut in for two days due to weather. During January, the well averaged 583 BOE per day, including 531 Bbl of oil per day and 313 Mcf of natural gas per day (91% oil). In only about three months on production, including its initial cleanup phase, the well has already produced over 48,000 BOE, including approximately 44,000 Bbl of oil, and continues to flow with gas lift assist. These early results from the Ranger 33 State Com #1H and the Dorothy White #1H have exceeded the Company’s initial expectations for both wells.

Matador has recently completed drilling the Rustler Breaks 12-24-27 #1H well, its first horizontal well in Eddy County, Texas. This well is a 4,500-ft horizontal lateral testing the Wolfcamp “B” formation at approximately 9,800-ft vertical depth. Matador is currently completing this well with a 19-stage hydraulic fracture treatment, including 180,000 Bbl of fluid and 8.5 million pounds of sand. The Wolfcamp “B” is also an over-pressured reservoir like the Wolfcamp “A” in the Dorothy White #1H well and exhibited encouraging hydrocarbon shows while drilling. Upon completion of a 30-day production test, Matador expects to announce the results of this well. To this point, this well has met or exceeded the Company’s expectations. Matador is currently drilling the Pickard 20-18-34 #2H well, which is planned to be a Wolfcamp “D” test in the northern portion of its Ranger/Querecho Plains prospect area in Lea County, New Mexico. Matador plans to drill 12 gross (9.8 net) wells across its various acreage positions in the Permian Basin in 2014.

Matador began 2014 with approximately 70,800 gross (44,800 net) acres in the Permian Basin in Southeast New Mexico and West Texas. During 2014, the Company has acquired approximately 2,800 gross (1,600 net) additional acres in its various prospect areas in Lea and Eddy Counties, New Mexico. Including these acreage acquisitions, at February 12, 2014, Matador’s total Permian Basin acreage position in Southeast New Mexico and West Texas was approximately 73,600 gross (46,400 net) acres.

Source: Business Wire

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