Matador Resources will spend almost 85% of its capital budget developing properties and acquiring new properties in the Eagle Ford Shale in 2012. The company wil drill no Haynesville Shale operated wells in 2012 and will keep two rigs active in the Eagle ford throughout the next 12-months.
As set forth in its initial public offering prospectus dated February 1, 2012, Matador’s 2012 capital budget is estimated to be approximately $313 million. The Company plans to direct approximately 94% or $295 million of its 2012 capital budget to opportunities prospective for oil and liquids opportunities, including the allocation of approximately 84% or $264 million specifically to the exploration, development and acquisition of additional interests in the Eagle Ford shale play in South Texas. Matador is running two rigs in South Texas currently and expects to run two rigs in that area throughout 2012. The Company plans to allocate the remaining 6% or approximately $18 million of its 2012 budget to natural gas related activities, primarily in the Haynesville shale in North Louisiana. The Company does not plan to drill any operated Haynesville wells in 2012.
While natural gas production will be in decline from the lack of activity in the Haynesville, the company expects volumes will be offset by higher value wet-gas in the Eagle Ford.
Matador anticipates that some of the decline in the Company’s Haynesville dry gas production will be offset by natural gas production associated with its Eagle Ford drilling activities which should enjoy higher effective pricing as compared to the Haynesville dry gas production due to its natural gas liquids (“NGL”) content.
Read the entire press release at matadorresources.com