OKLAHOMA CITY–(BUSINESS WIRE)–Roan Resources, Inc. (NYSE: ROAN) (“Roan” or the “Company”) announced it is positively updating guidance for the second quarter of 2019.
Specifically, the Company anticipates second quarter production to exceed 50 thousand barrels of oil equivalent (MBoe) per day, which compares to adjusted guidance of approximately 49 MBoe/d, when accounting for ethane rejection(1).
Additionally, due to drilling and completion costs continuing to trend lower, the Company is projecting CAPEX to come in approximately 10% below original second quarter guidance of $155 million.
The Mad Play unit, along with the Mayes wells from the Earl and Victory Slide units, continue to be strong producing wells. Updated results for these wells are as follows:
- 4-well Mad Play unit had an average per well 30-day IP rate of 1,602 Boe/d (44% oil, 20% NGLs, 36% gas) from a normalized 10,000-foot lateral
- 3 Mayes wells from the Earl unit had an average per well 30-day IP of 1,466 Boe/d (39% oil, 24% NGLs, 37% gas) from a normalized 10,000-foot lateral
- 2 Mayes wells from the Victory Slide pad had an average per well 30-day IP rate of 1,109 Boe/d (71% oil, 14% NGLs, 15% gas) from a normalized 10,000-foot lateral
The Company anticipates 14 gross operated wells to be turned to first sales during June and July. These wells are spaced and being completed in accordance with the Company’s improved development program of 2019 and anticipates strong performance results from this group of wells.
“We remain focused on executing on our development program and achieving free cash flow by the fourth quarter of 2019 while still growing production 20-25% year over year,” said Joseph A. Mills, Roan’s Executive Chairman of the Board. “With respect to operations, based on preliminary results, our second quarter production results are outperforming on a lower capital spend. We are expecting several strong wells to come online through July that will further exemplify the meaningful operational optimizations the Company has made. In addition, the Company remains very engaged with the strategic initiative process with its advisors and has executed multiple NDA’s with interested parties.”
The Company elected to reject ethane in the month of June, which impacts monthly volumes by approximately 3.3 MBoe/d. Previous second quarter guidance of 50 MBoe/d incorporated ethane recovery in June.
About Roan Resources
Roan is an independent oil and natural gas company headquartered in Oklahoma City, OK focused on the development, exploration and acquisition of unconventional oil and natural gas reserves in the Merge, SCOOP and STACK plays of the Anadarko Basin in Oklahoma.
For more information, please visit www.RoanResources.com, where we routinely post announcements, updates, events, investor information, presentations and recent news releases.