CALGARY, Alberta, April 02, 2018 (GLOBE NEWSWIRE) — PetroShale Inc. (“PetroShale” or the “Company”) (TSXV:PSH) (OTCQX:PSHIF) is pleased to announce initial results from our recently completed operated and non-operated wells and the acquisition of additional acreage in one of our core areas.
PetroShale recently acquired additional acreage in our South Berthold core area for an aggregate purchase price of US$17.8 million, funded through the Company’s existing senior credit facility. This acreage is largely undrilled and has the potential to add a significant number of new net locations to PetroShale’s high-quality drilling inventory.
Operated and Non-Operated Well Results
PetroShale has drilled and completed four (3.7 net) new wells on two operated drilling spacing units (“DSUs”), being “Primus” in the Antelope area and “Horse Camp” in the South Berthold area of the North Dakota Bakken. The two Primus wells were drilled on the same DSU as PetroShale’s first operated well (“8H”) which was completed and placed on production in December 2016. The two Horse Camp wells were completed on a new operated DSU that PetroShale acquired in June 2017.
The Primus “3H” well was completed with a 9,550 foot long lateral in the Bakken formation and started producing on a production test on March 5th. The 3H well produced at an average rate for the last 28 days of approximately 1,880 barrels of oil equivalent per day (“boepd”) including 1,466 barrels of oil per day (“bopd”) and 2.5 million cubic feet of gas per day (“mmcfd”). The Primus “4H” well was completed with a 7,120 foot long lateral in the Three Forks formation and started producing on a production test on March 6th. The 4H well produced at an average rate of approximately 1,319 boepd, including 1,031 bopd and 1.7 mmcfd over the last 27 days. We are managing the flowback from these wells as they continue to clean up and are seeing rates improve over time. Latest rates for the 3H and 4H wells are approximately 1,972 boepd and 1,607 boepd, respectively, and PetroShale has an 85.8% working interest in these Primus wells.
The Horse Camp “4-11H” well was completed with a 4,689 foot long lateral in the Bakken formation and started producing on a production test on February 11th with an average first 30 day rate of approximately 981 boepd, comprised of 821 bopd and 0.96 mmcfd. The Horse Camp “104-11H” well was completed with a 4,281 foot long lateral in the Three Forks formation and started producing on a production test on February 11th with an average first 30 day rate of approximately 907 boepd, including 759 bopd and 0.89 mmcfd. PetroShale has a 100% working interest in these Horse Camp wells.
Our “8H” well has been shut-in since September 2017 when the well stopped flowing under natural pressure. We left the well shut-in to protect it from offset fracing of our new Primus wells and other wells in the vicinity, and then commenced a workover to remove downhole equipment and deeper frac plugs that were originally left in the well. At the time of shut-in, the 8H well had produced approximately 183,000 barrels of oil in less than nine months. The well returned to production on March 29th and has averaged approximately 1,514 boepd, including 1,181 bopd and 2.0 mmcfd over the last four days.
PetroShale completed facilities and pipelines in March that tied-in gas production from the new Primus and Horse Camp wells to local gas gathering infrastructure. We anticipate gas production at the 8H well to be tied-in by the end of April.
In addition to our operated wells, PetroShale participated (18.75% working interest) in four non-operated wells, three of which were completed in November 2017 and a fourth in February. In aggregate, these four wells are currently producing approximately 2,575 bopd (483 bopd net to PetroShale’s working interest) from the Middle Bakken and Three Forks formations. Gas is currently being flared, with connection to a local gas gathering system anticipated to occur late in the second quarter.
PetroShale is very encouraged by the results from these new wells as they have significantly increased our total production. The Company’s March average working interest production was approximately 5,300 boepd, compared to an average of 1,894 boepd in the third quarter of 2017. Anticipated gas production tie-ins at 8H and the four new non-operated wells in the second quarter are expected to add to working interest volumes. Production volumes are subject to fluctuation as new wells clean up, stabilize and naturally decline.
PetroShale is an oil company engaged in the acquisition, development and consolidation of interests in the North Dakota Bakken / Three Forks.