Red Mountain Resources Notes Initial Production at Madera Well
Red Mountain Resources, Inc., a growth-oriented energy company engaged in the acquisition, development, and exploration of oil and natural gas properties, announced the initial production of its recently drilled and completed Madera 24 Federal 3H well.
The initial production rate from the Madera 24 Federal 3H well was 1,491 barrels of oil equivalent per day (81% oil). Located in the Permian Basin, the Madera 24 Federal 3H well has a total measured depth of 13,570 feet, including a true vertical depth of 9,062 feet and a lateral length of 4,508 feet. A 20-stage open-hole completion system was run, and all 20 stages were opened to the well bore. The stages were frac treated with a total of 1.94 million pounds of sand. Flow-back on the well is currently taking place to clean out the lateral leg, and the load recovery is approximately 49.7 percent.
RMR owns approximately 32.5-percent working interest and 24.3-percent net revenue interest in the well.
"We are extremely excited with the successful drilling and completion of the Madera 24 Federal 3H well and its initial production rate," said Alan Barksdale, Chief Executive Officer of RMR. "These production results from our second operated horizontal well in the Brushy Canyon formation demonstrate the tremendous potential of our Delaware Basin property and further validate the economic and type curve assumptions of our Madera development program. We also completed the conversion of the Madera 25 Federal 1 to a salt water disposal well which reduces our disposal costs for the Madera wells by more than 65%."
RMR's Madera prospect is comprised of 2,545 gross acres (1,132 net) and includes Brushy Canyon, Avalon Shale, Bone Spring, Strawn, and Atoka formations. In addition to the Madera 24 Federal 3H well, RMR expects to drill 10 additional Brushy Canyon horizontal wells within the Madera prospect to go along with 12 potential Avalon Shale horizontal wells, 12 potential Bone Spring horizontal wells, and three potential Strawn/Atoka vertical wells. RMR operates all of the leases within the Madera prospect through its wholly owned subsidiary, RMR Operating, LLC, and owns working interests ranging from 23.3 to 83.6 percent and net revenue interests ranging from 17.5 to 62.7 percent.
"Because we own and operate the Madera prospect, we are in the unique position of controlling the timing associated with the potential drilling locations. This provides us with great flexibility to drill at the appropriate time and allocate resources to the various locations as it makes sense based on our overall company objectives. We believe this property is a prime example of how RMR is carefully building the company with a focus on production and reserve growth to ensure its long-term viability and continued success," Barksdale concluded.
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