PetroShale (ticker: PSH) holds multiple assets throughout the Bakken/Three Forks plays. The company is partnered with several Bakken operators and has 64,500 gross (4,136 net) acres. Across this acreage, the company holds 49 net potential drilling locations—representing approximately $450 million in drilling inventory, the company reported.
PetroShale produced an average of 3,349 BOEPD during its first quarter of 2017. Its capital expenses during the first quarter were $1.945 million, all of which was spent in participating in the completion of 43 gross non-operated wells.
Acquisition
PetroShale announced an acquisition of land in its core South Berthold area. The acquisition was announced on June 5th, 2017, and PetroShale will pay $9.0 million for acreage that forms two separate drilling units. The company will be assuming a 92% working interest in the acreage, which currently produces approximately 90 BOEPD.
Potential in PetroShale’s first operated well
In PetroShale’s first operated well—the 8H well, in the middle Bakken—an initial test period in early 2017 indicated a 24-hour initial production rate of 2,500 to 3,000 gross BOEPD. PetroShale noted that the well was achieving high production rates despite only a third of the wellbore length being fully completed. The company said it that the remaining two thirds of the well will be completed appropriately to bring the remainder of the well’s potential online.
PetroShale noted that its recently completed well was adjacent to acreage owned by EOG Resources, on which EOG drilled a record Bakken well with a 30-day initial production rate of 3,580 BOEPD.
The company wants to further pursue opportunity in its acreage by increasing well density. As of December, 2016, the company’s reserve report estimated 232 gross (33.6 net) 2P well locations. The company predicts that if it increased density to 880 foot spacing, the reserves would grow to 462 gross (48.9 net) 2P locations. It further predicted that if it reduced spacing further—to 660 foot spacing—the reserves would grow to 675 gross (67.0 net) 2P locations.
PetroShale is presenting at EnerCom’s The Oil & Gas Conference® 22
PetroShale will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.
The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors. The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.
