Lonestar Resources Q1: Strong Production Growth

Q1 2017

Lonestar Resources credit its Eagle Ford well completions for a strong production growth for the first quarter.

Related: Carrizo Invests Heavily in the Eagle Ford Shale Play

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.
— Lonestar's Chief Executive Officer, Frank D. Bracken, III,

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