Australia-based New Standard Energy completed drilling operations on its second Eagle Ford well (Peeler Ranch 6-H) in late March 2014. The first well (Peeler Ranch-5H) was completed at the end of February 2014. New Standard entered the Eagle Ford in December 2013 when the company acquired Magnum Hunter Resources' Eagle Ford assets in Atascosa County, TX.
The wells are operated on the company's behalf by Magnum Hunter. New Standard has a 98.4375 % working interest and a 72.4125 % net royalty interest in the two wells.
Read more: Magnum Hunter Signs Option to Sell Pearsall and Eagle Ford Assets
Magnum Hunter is a New Standard shareholder, and the companies have formed a strategic business partnership in the play. As drilling continues, New Standard will work with Magnum Hunter to identify drilling locations.
“We have had an excellent start to our Eagle Ford drilling campaign and look forward to continuing to work alongside the team at Magnum Hunter to deliver more wells within budget and on time to facilitate increased production and revenue.”
Both New Standard Eagle Ford wells were drilled in parallel lateral lengths, targeting the same hydrocarbon bearing zone in the formation. The wells will be fracked in April 2014, using the "zipper frac" method, which alternates frac stages between the two wells. According to company officials, production will begin in late April or early May. The two wells will add to the five existing wells already in production within the acreage.