Earthstone Energy, Inc., www.earthstoneenergy.com – the growth and profitability-focused independent oil and gas firm (formerly Basic Earth Science Systems, Inc., originally formed 41 years ago as a geophysical service company) with substantial operations in the Rocky Mountain Region and Texas/Gulf Coast, reported yesterday that XTO Energy Inc. (acquired by Exxon Mobil Corporation in 2010) finished BSIC’s new well and placed it in production.
This newest well, the Mondak Federal #11X-14H (Section 14, T148N-R105W), is targeting the Bakken Formation in BSIC’s Williston Basin operations and is reported by XTO to have an initial output production rate of 489 BPD, 251 MCF of gas per day and 955 barrels of water per day.
With approximately 8.40625% working interest and a projected $400k in costs associated with drilling and completion, BSIC has added yet another producing revenue stream to its portfolio of operations in the Montana and North Dakota areas of the Williston Basin which, according to the Company’s website, consists of some:
18.6 net oil wells
57 gross oil wells
64,800 Bbls of Oil
29,400 MCF of Gas
With a 33.8k Bbls of oil and 26.4k MCF of gas (4.2 net/7 gross wells) operation in the Denver-Julesburg basin of Colorado, and a smaller operation in Wyoming, BSIC is really capitalizing on its three-pronged organic growth strategy, which emphasizes generating shareholder returns via growth of its resource pool and exploration drilling, including:
Cost-effective implementation of both external and internal drilling projects
Analysis and identification of strategically high-value production sites
Increasing liquidity via cost controls and exploitation of behind-pipe potential
The Company is a survivor, as is evinced by its proven operational track record, with a solid management team capable of steering the ship through even turbulent markets, and BSIC has an extensive production foundation with positive cash flow and profitability on its side.