PetroShale (PSH-V) Jan 16, '17 is pleased to announce initial results from its first operated well (PetroShale "8H"), and its participation in three recently completed non-operated wells, all situated within the heart of the North Dakota Bakken / Three Forks play.
PetroShale's operated drilling spacing unit ("DSU"), in which PetroShale has a 73% working interest, is immediately adjacent to an industry record Bakken well completed in 2015 by EOG Resources ("EOG"). EOG's adjacent well, in which PetroShale has an 18.8% working interest, has produced over 635,000 boe during its first 18 months of production.
PetroShale's 8H operated well was completed and commenced production testing on December 31, 2016. The Company employed a high-intensity completion method, completing 30 fracture stages. The Company is pleased with initial well test production rates of 2,500 to 3,000 barrels of oil per day (bopd). The well continues to flow naturally, without artificial lift, and is currently stabilizing between 1,100 and 1,400 bopd (880 to 1,120 bopd net of royalty). The Company experienced mechanical issues with drilling out the stage packers after fracing and as such, the well is only producing from an estimated 9 of 30 stages. We will continue to produce the well and once downhole pressures have subsided we will evaluate drilling out the remaining packers to produce from more of the completed stages in the wellbore.
In addition, three non-operated wells were recently completed in a DSU operated by EOG in which PetroShale has a 24.7% working interest. The three non-operated wells are currently tied in and producing, in aggregate, approximately 5,600 bopd (1,400 bopd PetroShale working interest; 1,120 bopd net of royalty) from the Middle Bakken and Three Forks formations. Production from these wells is initially outperforming estimates reflected in our independent reserve report as at December 31, 2015 (the "Reserve Report").
The Company's current working interest production is approximately 4,000 boe/d, compared to an average of 1,540 boe/d in the third quarter of 2016. Production volumes are subject to fluctuation, as we clean up the 8H well and each of the new wells stabilizes, as well as natural declines.
The 8H well is the first horizontal well drilled on our operated DSU, and targeted the Middle Bakken. PetroShale currently has an additional 11 proved plus probable locations booked on this DSU in our Reserve Report based on 1,320 foot spacing.
PetroShale is very encouraged by the results from its first operated well, as well as its participation in the non-operated DSU within the core of the Company's land base, and significantly their longer-term impact on production, reserves and revenue growth potential for the Company.
About PetroShale
PetroShale is an oil company engaged in the acquisition, development and consolidation of interests in the North Dakota Bakken / Three Forks.
CONTACT INFORMATION:
PetroShale Inc.
Attention: Executive Chairman and CEO
+1.303.297.1407
Info@PetroShaleInc.com
www.petroshaleinc.com
or
Cindy Gray
5 Quarters Investor Relations, Inc.
403.828.0146
info@5qir.com |
