Lonestar Releases First Quarter Earnings
Lonestar Resources plans to focus the rest of 2016 on its Eagle Ford assets in Dimmit, LaSalle and Gonzales Counties.
Related: Earthstone Energy Looks to Resume Eagle Ford Activity
In a first quarter earnings report, Lonestar announced an 18% increase in net oil and gas production to 6,553 BOEPD in 1Q16, vs. 5,547 BOEPD in 1Q15 along with a net loss of $11.3 million.
Eagle Ford Operations
Throughout the quarter, Lonsestar focused its technical and capital resources on the Eagle Ford Shale and boasts an increase of 23% for oil and gas volumes compared over the first quarter of 2015.
“Lonestar currently plans to drill and complete a total of 6 to 7 net wells (9 to 10 gross wells) at today’s NYMEX strip prices, with a focus on Dimmit, LaSalle and Gonzales Counties. The Company’s plan is intended to result in no change in the Company’s net debt position at December 31, 2016 and yield annual average production which Lonestar estimates would range from flat to an increase of up to 10% over 2015 results.”
Highlights include:
- Assets averaged 5,954 BOEPD during the first quarter of 2016, and was comprised of 3,066 barrels of oil per day, 1,391 barrels of NGL’s per day, and 8,987 Mcf of natural gas per day
- 75% of production was derived from liquid hydrocarbons, 51% of which was derived from crude oil
- Operating expenses from Eagle Ford Shale assets totaled $4.1 million, a 14% increase over the first quarter of 2015
- On a unit of production basis, field operating expenses decreased 9% to $7.53 per BOE, year-over-year as production volumes continued to grow.