Earthstone Energy Provides Update on Its Horizontal Ratcliffe Project
Earthstone Energy (NYSE: ESTE) reported today that, along with its partners, it has concluded drilling operations on its previously announced horizontal Ratcliffe well, the Federal #1-5H, in Sheridan County, Montana. The well horizontally penetrated approximately 5,000 feet of Ratcliffe with encouraging results before drilling operations were concluded. The Company expects to begin completion operations within the next two weeks.
Earthstone previously announced it has committed to participate in the drilling of at least two horizontal Ratcliffe wells in this exploration project, the Federal #1-5H being the first of these wells. The Company estimates that its 7.5% share of drilling and completion costs for the two wells will be approximately $1,000,000. Earthstone plans to fund all the above efforts with existing cash, its cash flow from operations, and/or proceeds from its recent sale of Colorado properties.
In related news, the Company provided updates on it's recently acquired vertical Ratcliffe producer and vertical Red River/Gunton producer, the Federal 22-5 and Hoffelt 2. The Federal 22-5 continues to average approximately 45 barrels of oil per producing day, a 180% increase compared to pre-acquisition production rates. On the Hoffelt 2, the Company expects to move in a workover rig this week to commence remedial downhole repairs. Following these efforts, Earthstone hopes to see improvements on the Hoffelt 2, similar to those seen on the Federal 22-5 above.
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