CALGARY, June 22, 2018 /CNW/ – (TSX: EGL): Eagle Energy Inc. (“Eagle“) has completed its second horizontal well in North Texas. It was drilled approximately 12 miles south of Eagle’s initial horizontal well to assess the extent of this play. The well has been on production for less than 30 days and is currently producing 84 barrels of oil per day. Although oil production is increasing as the well cleans up, the rate is below expected levels and is not projected to improve significantly.
Wayne Wisniewski, Eagle’s President and Chief Executive Officer stated, “While this is not the initial oil rate we had hoped for, we did encounter good rock quality while drilling in this southern location and did make substantial headway in reducing drilling time and completion costs. We used a plug and perf completion technique that was near textbook in its execution and believe we could continue to drive down costs through a continuous drilling program.”
Mr. Wisniewski continued, “We remain optimistic about our horizontal drilling play in North Texas. We hold over 25,000 net acres on contiguous leases in six different areas across Hardeman county that are prospective for horizontal development. We plan to spud our third horizontal well next quarter about a mile from our initial horizontal well, which continues to exceed our production expectations. In addition, our North Texas oil is selling at par to WTI while many Permian producers are seeing negative WTI differentials ranging from $10 to $15 per barrel.”
Oil and Gas Advisories
The short initial production rates are preliminary in nature and may not be indicative of stabilized on-stream production rates. The initial production results are not necessarily indicative of long-term performance or of ultimate well recovery rates.