EARTHSTONE ENERGY, INC. (NYSE MKT: ESTE) reported that the
Company has begun completion operations on its first deep Pennsylvanian
test in Cheyenne County, Nebraska. During drilling operations, the
Schmale 34-20 reached a total depth of 6,550 feet and was cased to 6,200
feet in order to more fully test the productive capacity of the well.
During completion operations, two zones were tested; one in a
Pennsylvanian age interval and one in a Permian age interval. While some
oil was recovered, at this time, volumes are not sufficient to warrant
building production facilities. The Company and its partners have
suspended operations and are assessing further actions which could
include further stimulation to existing zones, testing additional zones
or plugging the well. The Company expects to resume operations in the
next thirty days. Earthstone is the Operator of the well and has a 45%
working interest in this venture. The remaining ownership in this
project is held by unrelated, privately-held, third parties. As
previously disclosed, the Company has acquired approximately 70 square
miles of 3D seismic data and 30,000 acres of leasehold in the area;
primarily in Cheyenne County.
"It is hard to believe that a formation with that much porosity would
give up such a small amount of fluid," commented Ray Singleton,
President of Earthstone. "We continue to work with various service
companies in efforts to understand and overcome this challenge.
Regardless of the ultimate outcome of this first well, the knowledge and
data that we gain will refine our understanding of the geology and
geophysics in these deeper formations. The Company still anticipates
drilling one or two more wells over the next 18 months."
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, 2013 and Quarterly Reports on Form 10-Q for the
quarter ended June 30, 2013. The Company disclaims any obligation to
update forward-looking statements.
