Matador Resources focuses on Delaware Basin (Rustler Breaks, Wolfcamp)

Matador expects its natural gas processing plant to come online Aug, 2016, capable of 60 million cubic feet of natural gas per day

MatadorDALLAS – Matador Resources Company, an independent energy company, currently focused on its Delaware Basin operations in Southeast New Mexico and West Texas,  provided an update of its ongoing operations.

Highlights include the initial results from a number of recent wells drilled and completed in Matador’s Rustler Breaks and Wolf prospect areas in the Delaware Basin, including the results from two wells successfully testing a new, lower bench of the Wolfcamp B at Rustler Breaks.

Delaware Basin Update – Southeast New Mexico and West Texas

During the second quarter of 2016, Matador operated three drilling rigs in the Delaware Basin. Two of these rigs were operating in the Rustler Breaks prospect area in Eddy County, New Mexico, and one was operating in the Wolf prospect area in Loving County, Texas.

Matador has made no commitment to add an additional rig to its drilling program, but believes it has the well locations, operational and staff capacity to do so in the latter part of 2016 or early 2017 should the outlook for commodity prices continue to improve.

Matador completed and placed on production a total of 22 gross (17.2 net) wells in the Rustler Breaks and Wolf prospect areas during the second quarter of 2016, including 19 gross (16.4 net) operated and two gross (0.3 net) non-operated horizontal wells.

Most of these wells were placed on production during May and June and, as a result, did not contribute fully to second quarter production volumes.

From Jan. 1 through June 30, Matador completed and placed on production 28 gross (20.3 net) wells in the Delaware Basin, including 21 gross (18.2 net) operated horizontal wells, two gross (1.5 net) vertical wells and five gross (0.6 net) non-operated wells.

As previously reported, Matador is currently building a cryogenic natural gas processing plant and the associated natural gas gathering system in the Rustler Breaks prospect area to support its ongoing and future development efforts there.

The Rustler Breaks natural gas processing plant is expected to have an inlet capacity of approximately 60 million cubic feet of natural gas per day, and at July 18, construction of the processing plant is on time and on budget. The plant is expected to become operational August, 2016.

Matador has also completed the installation and testing of the 12-inch natural gas gathering line running throughout the length of its Rustler Breaks acreage position, and this natural gas gathering line is now being used to gather much of Matador’s natural gas production at Rustler Breaks.

 

Initial Potential Completed
Oil Gas BOE % Oil FCP(1) Choke Lateral Length
Well Interval (Bbl/d) (MMcf/d) (BOE/d) (psi) (inch.) (feet)
Paul 25-24S-28E RB #221H Wolfcamp A-XY 1,253 2.7 1,701 74% 2,425 34/64″ 4,455
Janie Conner 13-24S-28E RB #204H Wolfcamp A-XY 1,146 2.4 1,550 74% 2,380 34/64″ 4,455
Janie Conner 13-24S-28E RB #207H Wolfcamp A-XY 1,094 2.6 1,525 72% 2,130 34/64″ 4,455
Jimmy Kone 05-24S-28E RB #208H Wolfcamp A-XY 982 2.4 1,385 71% 2,100 34/64″ 4,586
Dr. K 24-23S-27E RB #206H Wolfcamp A-XY 732 1.8 1,031 71% 1,500 34/64″ 4,324
B. Banker 33-23S-28E RB #221H Wolfcamp B (Middle) 515 6.6 1,608 32% 2,700 36/64″ 4,251
Jimmy Kone 05-24S-28E RB #228H Wolfcamp B (Blair) 751 10.1 2,438 31% 2,975 36/64″ 4,586
Tiger 14-24S-28E RB #227H Wolfcamp B (Blair) 623 7.1 1,812 34% 2,770 36/64″ 4,586
(1) Flowing casing pressure.

 

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