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Matador Resources Company (NYSE:MTDR) (“Matador” or the “Company”), an independent energy company currently focused on the oil and liquids rich portion of the Eagle Ford shale play in South Texas, today provided an update on various aspects of its operations.
Matador released a summary of the various 24-hour Initial Potential (IP) tests for the Eagle Ford wells it has drilled since the beginning of its drilling program in the Eagle Ford play for which it has filed, or will be soon filing, IP test results with the Texas Railroad Commission. With the exception of the number of frac stages, the results of these tests are a matter of public information via the W-2 and G-1 forms, which can be obtained from the Texas Railroad Commission, and are provided as both an update and a convenience to the Company’s investors who may not have easy access to the information provided by the Company to the Texas Railroad Commission. This data is summarized in the table shown below. The data includes the name of the well, the county where the well is located, completion date, the lateral length, the number of frac stages, the oil IP per day, the gas IP per day, the barrels of oil equivalent potential per day, the choke size and the pressure. To date, the Company has filed IP tests with the Texas Railroad Commission on twenty-one Eagle Ford wells.
As noted in its August 14, 2012 earnings release, Matador has begun flowing back wells on smaller chokes after stimulation than it did initially, which appears to provide better bottomhole pressure management, keeps the wells flowing longer before requiring artificial lift and may improve their long-term performance. The Company expects to continue using smaller chokes following stimulation going forward, which may result in lower flow rates and higher flowing pressures on IP tests in comparison to similar tests on earlier wells. In addition, IP data points should not be used alone to make an investment decision, but these points are provided in an effort to show the overall results of our Eagle Ford drilling program since inception. As to future releases, Matador does not expect to release IP data as each well is drilled but rather once or twice a year to try to provide information and perspective about its overall drilling program.