Bonanza has completed its first two of 14 planned horizontal wells in Apclark Field, Borden County, Texas, and commencement of production.
The Jackson-1 well was completed on September 3, 2008, and the Everett-1-H was completed on September 22, 2008. The wells were drilled to approximately 6,300 feet vertically and 4,000 feet horizontally. The wells were stimulated with multi-stage fractures and are currently producing together approximately 140-150 barrels of oil per day and 31 Mcf of natural gas per day from the Spraberry formation. Bonanza has a 25% working interest and an 18.75% net revenue interest in the field.
The Company is continuing with its exploitation program with the drilling of its next two horizontal wells commencing during the fourth quarter. Bonanza is also expanding the current 6,700 acre position by securing approximately 500 additional acres in the adjacent area.
"The Company is very pleased with the early performance of these wells, and is looking forward to the continuous drilling program. These first two completions validate our exploitation thesis in the field and the strength and value of the Company," said Bill Wiseman, President and CEO.
The Company also anticipates commencement of drilling operations on its Point Bar Prospect in Damon Mound field on or before October 31, 2008. The Company initially expected to spud this well in September, however due to Hurricane Ike which hit the Texas Gulf Coast on September 13, 2008, the Company's drilling contractor was delayed on other projects. The Company's initial well, which has been fully funded and is being drilled to approximately 4,000 feet, is anticipated to take 7-10 days to drill.
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