EARTHSTONE ENERGY, INC. (NYSE MKT: ESTE) reported that the
Company recently applied for a drilling permit in Nebraska in
preparation for a deep Pennsylvanian test of the Virgil Formation.
Earthstone expects to drill its first Nebraska well, the Schmale 33-20,
by mid-summer to a depth of approximately 6,500 feet. The well is
located in Sec 20, Township 15 North Range 47 West, Cheyenne County,
Nebraska. In conjunction with this effort, the Company has acquired
approximately 70 square miles of 3D seismic data and 30,000 acres of
leasehold; primarily in Cheyenne County. The Company anticipates
drilling one or two more wells over the next 18 months to define its
geologic concept. Earthstone will be the Operator and has a 45% working
interest in this venture.
"We are pleased to announce our newest project," commented Ray
Singleton, President of Earthstone. "We are encouraged by the potential
we see in this area. While the Nebraska panhandle has long been a
producing region with a high density of shallow wells, it has only been
sparsely explored in its deeper horizons. The 'rocks' in these deeper
Permian and Pennsylvanian age formations are typically carbonates
(limestone and dolomite), similar to the formations we experience in the
Williston basin. Also similar to the Williston basin, multiple
formations are productive; with several million barrel fields. However,
unlike the Williston basin, these wells are much shallower and are
inexpensive by Williston standards. Our initial efforts are expected to
be vertical well penetrations, in that we do not see this as a resource
play. However, as we gain better knowledge of the rocks, we may
incorporate horizontal drilling into our exploration efforts. We are
hopeful that these efforts will positively impact production and
reserves and have a meaningful impact on the value of the Company."
ABOUT EARTHSTONE ENERGY:
Earthstone Energy, Inc. is a growth-oriented independent oil and gas
exploration and production company with primary operations in the
Williston Basin and southern Texas. Earthstone is currently traded on
NYSE MKT under the symbol ESTE. Information on Earthstone can be found
at its web site: www.earthstoneenergy.com.
THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995. Some statements
contained in this release are forward-looking, and therefore involve
uncertainties or risks that could cause actual results to differ
materially. Forward-looking statements can be identified by words such
as "should," "may," "will," "anticipate," "expect," "estimate," "intend"
or "continue," or comparable words or phrases. In addition, all
statements other than statements of historical facts that address
activities that Earthstone intends, expects or anticipates will or may
occur in the future are forward-looking statements. Forward-looking
statements also include comments regarding the future contributions of
various personnel. Factors that could cause actual results to differ
materially include, contract terms and compensation in addition to
economic and political events affecting supply and demand for oil and
gas and government regulations. These and other factors are discussed in
more detail in Earthstone Energy's filings with the Securities and
Exchange Commission, including the Company's Annual Report on Form 10-K
filed for March 31, 2012 and Quarterly Reports on Form 10-Q for the
three, six and nine months ended June 30, 2012, September 30, 2012 and
December 31, 2012, respectively. The Company disclaims any obligation to
update forward-looking statements.
