Upstream operator Matador Resources Company (MTDR - Free Report) reported success at its horizontal drilling ventures and an increase in 2013 proved reserves.
Horizontal Drilling Update
Matador started production from the Dorothy White #1H, the company’s first horizontal well in Loving County, Texas. In its initial testing, the well produced 902 barrels of oil per day (Bbl/d) and 2.7 million cubic feet per day (Mmcf/d) of natural gas, resulting in 1,355 barrels of oil equivalent per day (Boe/d).
The Ranger 33 State Com #1H, Matador’s first horizontal well in Lea County, New Mexico, also exhibited strong results, exceeding its expectations. The well has consistently performed well since it was brought online toward the end of Oct 2013. In its first three months of operation the well has already yielded more than 48,000 BOE.
Matador successfully drilled its first horizontal well in Eddy County, Texas – the Rustler Breaks 12-24-27 #1H well and is currently working on another well, the Pickard 20-18-34 #2H, in Lea County, New Mexico.
Matador’s 2014 Permian Basin plans include drilling of 9.8 net wells.
At the beginning of 2014, Matador held net 44,800 acres of land in Southeast New Mexico and West Texas based Permian Basin. Following certain acquisitions in the Lea and Eddy Counties of New Mexico, the company’s holding in the Permian Basin in Southeast New Mexico and West Texas was 46,400 net acres as of Feb 12.
Matador reported its total proved oil and natural gas reserves of 51.7 million Boe at Dec 31, 2013, up a whopping 117% from the 2012 level of 23.8 million. Proved developed reserves (comprising 33% of the total reserves) comprised 8.3 million Bbl of oil and 53.5 Bcf of natural gas.
The company recorded growth in its proved oil reserves, up 56% year over year to 16.4 million Bbl in 2013, on its drilling ventures in the Eagle Ford.
As a result of Matador’s successful drilling and completion programs, the proved natural gas reserves increased to 212.2 Bcf versus 80.0 Bcf a year ago.
Matador presently holds a Zacks Rank #2 (Buy). Other players worth considering in the industry include Athlon Energy Inc. , Cabot Oil & Gas Corporation (COG - Free Report) and Clayton Williams Energy, Inc. . All these stocks currently sport a Zacks Rank #1 (Strong Buy).