SAN ANTONIO, Jan. 13, 2016 (GLOBE NEWSWIRE) — Brushy Resources, Inc. (“Brushy”) announced today the results from recent work completed on the Wolfe #3H well located in the Company’s Crittendon field in Winkler County, Texas. The Wolfe #3H well was drilled into the Brushy Canyon formation via a re-entry of an existing vertical well bore, with a 3,800 foot horizontal leg drilled in a west-east direction. The well encountered 50 feet of pay and was completed with a 9 stage Frack with 3.4MM # sand and 65,000 BBLS water. Brushy had been waiting on the install of a jet pump necessary to recover the Frack load and establish a steady production rate.
The jet pump was installed on the Wolfe #3H and initial fluid production was 1,000 barrels per day. Over the past several days the response has been in line with expectations with total fluid extraction increasing to 1,500 barrels per day and oil production increasing from 10 to 160 barrels of oil per day. Management believes that this trend should continue with production increasing until it reaches the production levels typical of other Horizontal Brushy Canyon wells drilled in the area
Brushy initiated the work on the Wolfe #3H as part of its recently announced merger with Lilis Energy (NASDAQ:LLEX) on December 29, 2015.
The enhancement of this well confirms management’s approach to cost savings by re-entering old wellbores. The Company has a further 12 vertical well bores in its acreage position that it could re-enter and convert into horizontal producers. The cost savings on a per well basis over creating new wellbores could range from between $1.5 – $3.0 million using this approach, increasing the economic profile of the wells.