Rosehill cuts Loving County spud-to-TD time in half
Rosehill Resources Inc. (ticker: ROSE) reported a net loss attributable to Rosehill of $1.3 million, or $(0.22) per share. Rosehill said this loss included an $18.2 million non-cash, pre-tax loss on commodity derivative instruments. For the quarter, Rosehill incurred capital costs of $96 million.
Operations
Rosehill grew average net first quarter production to 12,256 BOEPD (77% oil and 89% total liquids), or an increase of 67% compared to the fourth quarter of 2017. President and CEO J.A. (Alan) Townsend said that in April, the company produced over 18,000 BOEPD.
In the first quarter of 2018 Rosehill operated two rigs, drilled nine gross horizontal wells, completed nine wells in the first quarter and had five DUCs at the end of March. The company has reduced spud-to-total-depth in Loving County from over 30 days at year end 2016 to under 15 days across all zones.
IP-30 for 3-well Loving County pad came in at 6,400 gross BOEPD
In late February, the company began flowback on a three well pad on the Z&T 32 lease in Loving County, with all three wells producing from the lower Wolfcamp A formation. The wells have performed above the company’s type curve expectations, with combined IP 30-day rates of over 6,400 gross BOEPD, or 304 barrels of oil per thousand lateral feet.
“We expect to spud our first horizontal well in Lea County, New Mexico later this month,” Townsend said.
