PetroShale Inc. (ticker: PSH) has commenced drilling two (1.7 net) wells on its operated Primus unit in Antelope during the third quarter of 2017. PetroShale operates primarily in the Bakken/Three Forks play in North Dakota. As of September 2017, the company has 57-78 future net drilling locations (depending on the spacing) and approximately 4,946 net acres.
The company also commenced drilling two wells (100% working interest) on its operated Horse Camp unit during the fourth quarter, and participated in four (0.75 net) non-operated wells at Landforms.
PetroShale Operations Map (Sept. 2017)
Three of the four Landforms wells were placed into production during the fourth quarter, with initial production results consistent with the company’s Antelope type curve. The company understands the operator of the company’s non-operated Landforms wells is working over the fourth well, which has not yet been placed into production, but is expected to be on-line during the first quarter of 2018.
PetroShale recently commenced completion operations on its four operated wells which are anticipated to be placed into production through late January and early February.
Primus Pad Construction, July 2017
Courtesy of PetroShale
Financing update, new board member
The company has entered into an agreement with First Reserve in respect of a strategic financing transaction for gross proceeds of US$75 million. The investor First Reserve has agreed to acquire US$75 million of series A preferred shares in the company’s wholly owned subsidiary, PetroShale (US), Inc.
First Reserve is a global private equity investment firm exclusively focused on energy. Upon closing of the financing, the parties anticipate that Brooks Shughart, managing director of First Reserve, will be appointed to PetroShale’s board of directors pursuant to the terms of the investment agreement.
For detailed financial information, please click here.
