Matador Resources Company (
) provided an update on various aspects of its operations.
Matador released a summary of the various 24-hour Initial
) tests for the Eagle Ford wells it has drilled since the beginning
of its drilling program in the Eagle Ford play for which it has
filed, or will be soon filing, IP test results with the Texas
Matador has begun flowing back wells on smaller chokes after
stimulation than it did initially, which appears to provide better
bottomhole pressure management, keeps the wells flowing longer
before requiring artificial lift and may improve their long-term
performance. The company expects to continue using smaller chokes
following stimulation going forward, which may result in lower flow
rates and higher flowing pressures on IP tests in comparison to
similar tests on earlier wells.
In addition, IP data points should not be used alone to make an
investment decision, but these points are provided in an effort to
show the overall results of our Eagle Ford drilling program since
inception. As to future releases, Matador does not expect to
release IP data as each well is drilled but rather once or twice a
year to try to provide information and perspective about its
overall drilling program.
Matador also announced that its partner in the Gracie Prospect
has agreed to fund 100% of the next $9 million (approximately) of
additional exploration and leasehold renewal expenses, in order to
acquire 50% of the interest in this prospect, including paying
these monies toward a horizontal test of the Meade Peak shale that
is scheduled to be drilled later this year in Southwest
MTDR shares are up 2.8% to $10.35.