Matador Resources Company (NYSE: MTDR) (“Matador” or the “Company”), an independent energy company engaged in the exploration, development, production and acquisition of oil and natural gas resources, with an emphasis on oil and natural gas shale and other unconventional plays and with a current focus on its Eagle Ford operations in South Texas and its Permian Basin operations in Southeast New Mexico and West Texas, today is pleased to announce the 24-hour initial potential test results of two of its most recent wells completed in the Permian Basin – the Norton Schaub #1H well and the Pickard State 20-18-34 #1H well, each of which has been producing less than 30 days. Matador is also pleased to provide an update on its growing leasehold position in the Permian Basin.
24-Hour Initial Potential Test Results
In the Wolf prospect area of Loving County, Texas, the Norton Schaub #1H well flowed 1,026 BOE per day, including 706 Bbl of oil per day and 1,922 Mcf of natural gas per day (69% oil), at 3,000 pounds per square inch (“psi”) surface pressure on a 22/64
inch choke during its 24-hour initial potential test in mid-July 2014. This well was completed in the upper portion of the Wolfcamp formation, the Wolfcamp “A,” at approximately 10,800 feet vertical depth. Matador drilled a 4,700-ft horizontal lateral in the Norton Schaub #1H and completed this well with 20 frac stages, including approximately 200,000 Bbl of fluid and 9.8 million pounds of sand. This well is the Company’s second successful test of the Wolfcamp “A” formation in its Wolf prospect. The Norton Schaub #1H was drilled near and to the northwest of Matador’s original well on the Wolf prospect, the Dorothy White #1H, which has produced 175,000 BOE, including 115,000 Bbl of oil (66% oil), in about seven months on production. Based on the success of these two wells, Matador intends to keep one of its two Permian Basin drilling rigs operating full-time in the Loving County area.
In the Ranger prospect area in Lea County, New Mexico, the Pickard State 20-18-34 #1H well flowed 592 BOE per day, including 535 Bbl of oil per day and 340 Mcf of natural gas per day (90% oil), at 750 psi surface pressure on a 22/64
inch choke during its 24-hour initial potential test in late July 2014. This well was completed in the Second Bone Spring sand at approximately 9,900 feet vertical depth. Matador drilled a 4,100-ft horizontal lateral in the Pickard State 20-18-34 #1H and completed this well with 17 frac stages, including approximately 167,000 Bbl of fluid and 7.3 million pounds of sand. This well is the Company’s second positive test of the Second Bone Spring sand in the Ranger prospect area, and early indications are that this well may be comparable to or better than Matador’s initial Second Bone Spring well, the Ranger 33 State Com #1H, which has produced 123,000 BOE, including 113,000 Bbl of oil (91% oil), in about nine months on production. The Pickard State 20-18-34 #1H well flowed oil at higher rates and at higher flowing pressures much earlier on comparable chokes, as compared to the Ranger 33 State Com #1H. At July 30, 2014, Matador’s total acreage position in the Ranger prospect area was approximately 14,600 gross (10,200 net) acres.
Matador began 2014 with approximately 70,800 gross (44,800 net) acres in the Permian Basin in Southeast New Mexico and West Texas. Between January 1 and July 30, 2014, Matador acquired an additional 23,200 gross (17,200 net) acres in this area, primarily in Loving County, Texas and in Lea and Eddy Counties, New Mexico. Including these acreage acquisitions at July 30, 2014, Matador’s total Permian Basin acreage position is approximately 94,000 gross (62,000 net) acres. Of particular note, the Company holds 11,200 gross (7,200 net) acres in the Loving County area (including a few small tracts in Reeves and Ward Counties) at July 30, 2014. Matador has effectively doubled its leasehold position in the Loving County area since January 1, 2014, including the addition of 1,800 gross (1,700 net) acres located adjacent to its Wolf prospect area, and has increased its overall position in the Delaware portion of the Permian Basin by approximately 33%.