S.
Now they hit THE BIG ONE! 400 bod is a huge well in any book. Going 4 for 4 on exploratory wells is unheard of, even in the prolific Permian Basin. These guys are proving that high technology, cautiously applied, can truly beat the system. Even though the stock has doubled in the last month it is now undervalued again. Check
this out:
HOUSTON, March 31 /PRNewswire/ -- Midland Resources (Nasdaq: MRIX) today announced the successful discovery of a new field in the Fusselman formation with estimated gross potential reserves of approximately nine million barrels of oil equivalent. In a 24 hour test, the Sugg #1 exploration well flowed at a rate of 407 barrels of oil and 50 thousand cubic feet of gas per day with a flowing tubing pressure of 250 pounds per square inch through a 13/64 inch choke. Midland Resources owns a 50% working interest and a 43.75% revenue interest in the well. The well was placed on production immediately following the test and the Company will proceed within two weeks with development drilling in the newly discovered field located in Reagan, Sterling, and Tom Green Counties, Texas.
The discovery well location was selected based on interpretation of 3D seismic data obtained in late 1996. Reprocessing of the data with the new information gained from the discovery well confirms the potential to drill up to 12 additional wells in the Fusselman formation. Full development of the field could potentially add 3.3 million net barrels of oil equivalent to Company oil and gas reserve estimates with 33 percent of those reserve estimates categorized as proved with this successful completion of the Sugg #1.
Deas H. Warley, President of Midland Resources, stated, "We are certainly excited about this project and our success to date utilizing 3D seismic. We completed four major 3D seismic survey projects covering approximately 32,000 acres in 1996. With this well, we now have had discoveries on three of the four. We are now attempting completion on the fourth and based on positive testing results, we anticipate another successful completion. I attribute this high rate of success to our internally generated, stringent criteria for selecting and/or generating 3D seismic exploration projects. I think the results have clearly indicated to us where we will continue our primary focus in the future."
Midland Resources specializes in the application of advanced technology for the exploration, development and production of natural gas and oil. The Company owns oil and gas interests principally in the Permian Basin of West Texas and the Texas Gulf Coast. The common stock of the Company trades in the NASDAQ SmallCap Market with the symbol MRIX.
SOURCE Midland Resources, Inc.
CO: Midland Resources, Inc.
ST: Texas
IN: OIL
SU: DSC
03/31/97 13:17 EST prnewswire.com
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