Archer has completed a Wolfberry oil well with it's initial well in the Company's Greater Joe Mill Project in West Texas, which was drilled to a total depth of approx 8500 feet. After recovering approximately 50% of the stimulation fluids (thus far) used to fracture the formation, the Company's operational team is reporting oil cut ahead of schedule. As is typical in these wells, the oil cut is increasing on an ongoing basis as more fluid is being recovered and is expected to increase to a peak production rate in the coming weeks. Management expects to be in a position to report an initial production rate on the well when approximately 70-80% of the stimulation fluids have been recovered.
Based on the success of this initial well, Management expects to commence drilling on the second location of the Company's four (4) well program in the Greater Joe Mill Project within the next 30 days.
The Greater Joe Mill Project is a tight formation, multi-pay zone vertical well opportunity in the Permian Basin of West Texas. The Company has over 25 potential drilling locations in the area. Despite the recent price drop in global oil prices, Management believes the Company's Wolfberry play will remain economic at prices down to approx $40 per barrel given the low finding and development costs inherent in these assets.
Victor Barcot, CEO stated, "This initial well successfully proves up multiple drilling opportunities for the Company on our existing acreage and further validates Archer's business plan of developing high probability, low risk assets while pursuing high impact acquisitions for the Company."
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