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

DALLAS – 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.

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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.