March 25, 2011
EARTHSTONE ENERGY, INC.
(Nasdaq: ESTE) (Earthstone or the Company)
supplied an update to its recent press release concerning
activity. This update refers specifically to the Company's participation with Brigham Exploration Company,
, and their activities in the Banks Field in
Banks Field, McKenzie County
Earthstone previously reported that the Company had received drilling proposals for two wells in the Banks Field from Brigham; the Garmin 19-18 #1H and the Enderud 9-4 #2H. Earthstone expected to have less than 1% working interest in both wells. Now, the Company expects its interest in the Garmin well to remain at less than 1%. However, Earthstone's working interest in the Enderud well is now expected to be 5.5%. In addition, the Company is now involved in a third Brigham well; the Broderson 30-31 #1H. This well is also expected to commence by early summer and Earthstone expects to have a 4.94% working interest in the well. Finally, Brigham has indicated that they plan to drill seven more wells, in addition to these three, by calendar year-end; approximately one per month. The Company's interest in each of these additional wells will be determined by the actual drilling spacing unit assigned to each well which is unknown at this time.
"This is great news," commented
, President of Earthstone. "And, it doesn't hurt that this is Brigham. With Brigham finally jumping into the Banks area, it is much more likely that we will meet, or exceed, our capital expenditure deployment goals this year and see a resulting positive impact on our production levels. The Company continues to pursue its strategy of drilling non-operated horizontal Bakken wells along with the acquisition of producing properties in the
portions of the
basin. The next few months should be exciting. With a number of efforts both underway and in the planning process, we anticipate increasing the Company's production and profitability in the coming year."
ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is an independent oil and gas exploration and production company with primary operations in the
Basin, the Denver-Julesburg Basin in
and the Gulf Coast area. Earthstone is currently traded on NASDAQ Capital Markets under the symbol ESTE. Information on Earthstone can be found at its web site:
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements contained in this release are forward-looking, and therefore involve uncertainties or risks that could cause actual results to differ materially. Forward-looking statements can be identified by words such as "should," "may," "will," "anticipate," "expect," "estimate," "intend" or "continue," or comparable words or phrases. In addition, all statements other than statements of historical facts that address activities that Earthstone intends, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements also include comments regarding the future importance of newly proposed, drilled or recompleted wells. Factors that could cause actual results to differ materially include availability of rigs and services, price volatility of oil and gas, estimated production rates and adjustments to ownership percentages in addition to economic and political events affecting supply and demand for oil and gas, loss of customers for oil and gas production and government regulations. These and other factors are discussed in more detail in Earthstone's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K filed for
March 31, 2010
. The Company disclaims any obligation to update forward-looking statements.
SOURCE Earthstone Energy, Inc.