Evolution Petroleum Corporation reported recent drilling results for two wells in the Giddings Field in central Texas. In mid-January, the Company completed the Hilton-Yegua #1RE as a re-entry into an existing well in the Burleson County area of the Giddings Field. The re-entry included drilling a new vertical section from 3,000′ depth to a total vertical depth of 10,500′ and then drilling a new horizontal leg of 3,000′ within the Austin Chalk Formation. On its first full day of production, the Hilton flowed approximately 4.0 million cubic feet per day (“MMCFD”) of rich natural gas with 237 barrels of oil and condensate (“BOPD”). Average gross production over the first eight days was approximately 3.0 MMCFD and 146 BOPD, and EPM owns a 100% working interest and approximately 80% of the revenue interest in the well.
In late January, the Company completed the Pearson #1RE as a re-entry into an existing well in the Grimes County area of the Giddings Field. The re-entry included the drilling of a new horizontal leg of 3,500′ within the Georgetown Formation at a total vertical depth of 10,500′. On its first full day of production, the Pearson produced approximately 1.25 MMCFD and 48 BOPD, a rate which it maintained over its first eight days of production. EPM owns 100% of the working interest and approximately 78% of the revenue interest.
Robert Herlin, President and Chief Executive Officer, commented, “We are very pleased that our two most recent re-entries in the Giddings Field have exceeded our expectations, particularly since the Pearson re-entry is located in the same immediate area as six grassroots development locations we have under lease. The average initial gross rate of almost 580 BOEPD for these two re-entries is more than double the initial rate we averaged on the first seven wells we placed on production in the Giddings Field during fiscal 2009.”
Mr. Herlin further commented, “Despite these excellent drilling results, we are continuing our strategy of deferring additional drilling of proved undeveloped locations until commodity prices improve. However, we are continuing to move forward with plans to commence drilling in our shallow Woodford Shale projects in order to confirm our expectations of substantial gas reserves at a cost that is attractive at current gas prices. We are also moving forward to confirm oil reserves in our South Texas Neptune project. Fortunately, our strategy of proving up and growing reserves does not require that we raise capital this year.”