Lonestar Resources credit its Eagle Ford well completions for a strong production growth for the first quarter.
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During a quarterly earnings call last week, Lonestar executives reported a 15% production growth during the three months ending March 31, 2017. The company also reduced Lease Operating and Gas Gathering Costs ("LOE") by 15% during the quarter, compared to $3.5 million over Q4 2016. Executives expect production to grow at an accelerated rate through the rest of 2017.
“2017 is off to a strong start, as Lonestar has resumed production growth in the Eagle Ford Shale play with a 15% increase in production over 4Q16 results. Our well results are validation of our highly technical approach to the Eagle Ford. I believe that we are on-track to accelerate production growth in the second half of the year, which should achieve improved liquidity and an expanded borrowing base heading into 2018.”
Q1 Highlights
- Net oil and gas production averaged 5,266 Boe/d
- Production volumes consisted of 3,250 barrels of oil per day (62%), 927 barrels of NGLs per day (17%), and 6,528 Mcf of natural gas per day
- Lonestar plans to drill 12 net wells during 2017
- Lease Operating Expense was reduced from $3.5 million in 4Q16 to $3.0 million in 1Q17
- General & Administrative Expense was reduced from $2.8 million in 4Q16 to $2.5 million in 1Q17