This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Matador Resources Company Provides Permian Basin Operational Update

Stocks in this article: MTDR

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 th 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 th 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.

Acreage Acquisitions

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%.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs