FORT WORTH, Texas, Sept. 30, 2014 /PRNewswire/ -- Lonestar Resources, Ltd. (ASX: LNR, OTCQX: LNREF) is pleased to provide an update on the Company's initial successes in its drilling and completion activities in the Eastern Eagle Ford Shale play, including initial production tests from its first two completions which average 738 barrels of oil equivalent per day (95% crude oil and NGL's). These results provide confidence in the Company's forecasted 2014 exit rate of 6,500 to 7,000 BOEPD, and suggest increases in proved reserves from the Eastern Eagle Ford Shale trend at year-end 2014.
As budgeted, Lonestar has drilled and completed five horizontal wells in Brazos and Burleson Counties during the third quarter of 2014. The first two of these wells have been drilled, completed, fracture stimulated and were placed on flowback on September 23rd. Details of their completion are as follows:
- Ranger Dansby #A4H- Lonestar drilled its first lateral in the Eastern Eagle Ford in 23 days. Lonestar perforated a 5,619-foot interval and pumped 7.9 million pounds of proppant across 21 stages (1,404 lbs/foot). The most current rate from the #A4H was 674 bopd and 413 Mcfgpd on a 17/64" choke, equating to a processed three-stream rate of 778 BOEPD. This rate is being achieved at a 40% oil cut, with only 4% of the frac load recovered. Lonestar has a 100% WI and a 78.1% NRI in the well, which was classified as Possible Undeveloped in Lonestar's reserve report at year-end 2013.
- Ranger Dansby #B1H- Lonestar drilled its second lateral in the Eastern Eagle Ford in 12 days. Lonestar perforated a 5,406-foot interval and pumped 8.1 million pounds of proppant across 21 stages (1,495 lbs/foot). The most current rate from the #B1H was 600 bopd and 387 Mcfgpd on a 17/64" choke, equating to a processed three-stream rate of 698 BOEPD. This rate is being achieved at a 36% oil cut, with only 4% of the frac load recovered. Lonestar has a 100% WI and a 78.3% NRI in the well, which was classified as Possible Undeveloped in Lonestar's reserve report at year-end 2013.
Lonestar currently has three wells awaiting fracture stimulation in the Eastern Eagle Ford. Lonestar owns a 82.3% WI and a 62.0% NRI in the Dunn A Unit #1H and Dunn A Unit #2H, which it has cased to total depth of 14,346 feet and 14,338 feet, respectively, and expects to begin fracture stimulation operations in the next 7 days. These wells were classified as Probable Undeveloped in Lonestar's reserve report at year-end 2013. Lonestar has also completed the Scasta #3H well, which was its only Proved Undeveloped location in its 2014 capital program. Lonestar owns a 100% WI and a 79.4% NRI in the Scasta #3H well, which it has cased to a total depth of 13,060 feet, and plans to fracture stimulate immediately after it completes operations on the Dunn Unit wells. All three of these wells are expected to contribute to production in November, 2014. Of considerable note is the fact that Lonestar has achieved considerable progress in terms of drilling time over its first five wells, with its last two wells reaching total depths approaching an average of 14,000 feet in an average of eight days.
Frank D. Bracken, III, Lonestar's Managing Director and Chief Executive Officer commented, "We are extremely pleased with our initial results in the Eastern Eagle Ford. We have delivered excellent initial production results from our first two producers, and currently expect to have three additional completions onstream by November, 2014. It is noteworthy that only one of Lonestar's five completions in the Eastern Eagle Ford Shale trend was designated as Proved Undeveloped in our reserve report at year-end 2013. Accordingly, we believe that the 2014 Eastern Eagle Ford drilling program should have positive implications for Lonestar's Proved Reserves base at year-end 2014. Furthermore, I am extremely pleased with the considerable strides made by our technical team in terms of optimizing our geo-steering processes, our drilling techniques, and our fracture stimulation procedures, and I believe that the Eagle Ford Shale wells that we will drill in 2015 will benefit significantly from what we have learned from our initial program."
Cautionary & Forward Looking Statements
This Announcement includes forward‐looking statements. These statements relate to Lonestar's expectations, beliefs, intentions or strategies regarding the future. These statements can be identified by the use of words like "anticipate", "believe", "intend", "estimate", "expect", "may", "plan", "project", "will", "should", "seek" and similar words or expressions containing the same or similar. These forward‐looking statements reflect the Company's views and assumptions with respect to future events as of the date of this Announcement and are subject to a variety of unpredictable risks, uncertainties, and other unknowns. Actual and future results and trends could differ materially from those set forth in such statements due to various factors, many of which are beyond Lonestar's ability to control or predict. Given these uncertainties, no one should place undue reliance on any forward‐looking statements attributable to Lonestar, or any of its affiliates or persons acting on its behalf. Although every effort has been made to ensure this report sets forth a fair and accurate view, Lonestar disclaims any obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.
SOURCE Lonestar Resources, Ltd.