Lilis Energy Inc. is raising its year-end production guidance after four wells in the Permian Basin reached 24-hour initial production (IP) rates, including one that it said registered the highest IP in New Mexico to date, the Houston-based company said Monday.
Lilis is raising its year-end net production guidance to 8,000 boe/d, up from 7,500 boe/d after “strong well results” from its Prizehog 2H, Wildhog 2H, Howell 1H and Antelope 1H wells. The Prizehog well is Lilis’ first to target the Wolfcamp A interval, while the Antelope well is its first in the Bone Spring, which is targeting the Third Bone Spring interval.
Meanwhile, the Wildhog and Howell wells are both targeting the Wolfcamp XY interval, from New Mexico and Texas, respectively. Wildhog is Lilis’ first well on its acreage in New Mexico, while Howell is the farthest eastern well drilled on Lilis’ acreage in West Texas.
“We are at the beginning of our delineation program with initial well results from several benches, and we are continually learning from our drilling and technical work,” CEO Ronald Ormand said. “We expect to continue improving the overall efficiency and productivity of our wells as we further evaluate and develop these additional benches.”
The Prizehog well reached a 24-hour IP rate of 1,825 boe/d (76% liquids), the highest ever recorded by Lilis in New Mexico, on a three-stream basis, equivalent to 411 boe/d per 1,000 feet. The Prizehog well was completed as a 4,720-foot lateral with 24 stages using 195-foot plug-to-plug spacing and about 2,040 pounds of sand per foot.
The Wildhog well reached a 24-hour IP rate of 1,756 boe/d (55% liquids), on a three-stream basis, equivalent to 386 boe/d per 1,000 feet. The well was completed as a 4,567-foot lateral with 23 stages using 200-foot plug-to-plug spacing and about 1,837 pounds of sand per foot.
The Howell well reached a 24-hour IP rate of 1,401 boe/d (49% liquids), on a three-stream basis, equivalent to 350 boe/d per 1,000 feet. The well was completed as a 4,002-foot lateral with 20 stages using 200-foot plug-to-plug spacing and about 1,354 pounds of sand per foot.
The Antelope well reached a 24-hour IP rate of 1,309 boe/d (53% liquids), on a three-stream basis, equivalent to 235 boe/d per 1,000 feet. The well was completed as a 5,560-foot lateral with 28 stages using 200-foot plug-to-plug spacing and approximately 1,584 pounds of sand per foot.
The company’s drilling program in the second half of 2018 will “almost exclusively target 1.5-mile laterals,” and the company is on track to meet and exceed its previously stated year-end exit rate of 7,500 net boe/d. Its total net acreage in the Permian today is more than 19,000 acres.
“We will continue to monitor our exit rate guidance throughout 2018 as we are confident of meeting and exceeding our revised target,” Ormand said.
Lilis in June traded some acreage to build its inventory in the Permian Delaware sub-basin in West Texas. The acre-for-acre trade was for about 1,500 net acres in Winkler and Loving counties to increase gross working interests in the Delaware by up to 35% and concentrate the land position in the company’s main operational area. No financial details were disclosed nor was the name of the trading partner.
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