Earthstone Energy Completes North Dakota Well

Earthstone Energy, formerly known as Basic Earth Science Systems, reported that drilling and completion operations have been concluded on the company's newest well.

The Alfred Brown #2 well is located in Section 34, T151N-R96W, McKenzie County, North Dakota in what is considered the deep part of the Williston Basin. The well reached total depth at 15,228 feet approximately 300 feet above the Precambrian granite. Based on drill cutting sample analysis, in addition to wireline geophysical surveys, the well appears to be productive in the Winnipeg, Red River, Duperow, Nisku and Mission Canyon formations (the Bakken formation in this spacing unit is already productive in the previously disclosed Kings Canyon #21-27H and the Lassen # 41-26H wells recently drilled by ConocoPhillips and in which Earthstone participates). The Alfred Brown #2 was completed in the Red River formation.

While initial indications are that the well will produce primarily natural gas, the productive capacity of the well will not be known until the well is connected to a gas sales gathering line. Earthstone has an approximate 7.25% working interest and estimates spending approximately $230,000 for our share of drilling and completion costs on this well. Murex Petroleum Corporation, headquartered in Aurora, Colorado, is the Operator of the well.

"We are excited about the preliminary results we have seen on the Alfred Brown #2; the final well we drilled in fiscal year 2010," commented Ray Singleton, president of Earthstone Energy. "With completion operations behind us, we are only waiting on a pipeline connection to bring this well on-line and begin seeing just how productive this well may be."