Earthstone Energy resumes Eagle Ford activity
Earthstone Energy executives express optimism that they can increase their Eagle Ford activity this summer as crude prices continue to move higher.
Related: Earthstone Reports ‘Decent’ Q4
The Woodlands-based company announced a challenging first quarter that included a 7% decrease in production. The company made crucial due to decisions to defer certain capital expenditures throughout the quarter due to weaknesses brought on by crude prices.
“This decrease was due to lack of completion activity on the 12 Eagle Ford wells that we have drilled, but are waiting on completion along with natural declines on well drilled in 2015 and the fact that we chose to allow flowing wells to continue to produce at lower rates as a result of postponing the capital expenditures for installing artificial lift on those flowing wells.”
2016 Q1 highlights:
- Average daily production of 3,576 Boepd
- Total revenue of $8.9 million, which includes the effects of realized hedges
- Lease operating expense decreased 30% relative to the first quarter of 2015
- Adjusted EBITDAX(1) of $1.9 million
Read more about Earthstone in the Eagle Ford
Eagle Ford Operations
Approximately 60% of Earthstone’s operated Eagle Ford acreage is held by production. The Company has 12 gross Eagle Ford locations waiting on completion from four units.
For the rest of 2016, the company has allotted $4.0 million to spend on the Eagle Ford.
“With price improvement, we believe we can ramp up production with our frac inventory while re-establishing drilling activities. We will likely complete our four-well Boggs Unit in Karnes County this summer.”
Last week, Earthstone announced it had completed their acquisition of Lynden Energy Corp anticipating production of approximately 4,900 barrels of oil equivalent per day.
Read more at EarthstoneEnergy.com