Matador Resources Updates Drilling Ops, Gracie Prospect Funding; Shares Rise 3%


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Matador Resources Company ( MTDR ) provided an update on various aspects of its operations.

Matador released a summary of the various 24-hour Initial Potential ( IP ) 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 Railroad Commission.

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 Wyoming.

MTDR shares are up 2.8% to $10.35.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2014 All rights reserved. Unauthorized reproduction is strictly prohibited.

This article appears in: Investing , Commodities
More Headlines for: IP , MTDR

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