New Standard Energy Limited spudded its first well in the Eagle Ford shale (EFS), the Peeler Ranch-5H, on Sunday 26 January 2014.
The Peeler Ranch-5H well, which is in New Standard’s Atascosa Project, Texas, USA, is operated on the company’s behalf by strategic business partner Magnum Hunter Recourses (NYSE: MHR, Magnum Hunter). It is expected to take approximately 20 days to drill to the target vertical depth (TVD) of 2,950 metres, with a lateral length of 1,735 metres.
Upon completion of Peeler Ranch-5H, the rig will be mobilised across the existing pad to drill the Peeler Ranch-6H well. This ability to use existing infrastructure will provide New Standard with cost efficiencies.
New Standard Energy Managing Director Phil Thick said while there were existing, producing wells on the same acreage which were already providing revenue to New Standard, the Peeler Ranch-5H represented a significant milestone for New Standard, as it is the first well drilled under the acreage’s new ownership.
“I am delighted that we have been able to progress operations alongside Magnum Hunter to a point where we are able to drill our first well only a week after receiving overwhelming support from our shareholders to purchase the Atascosa Project,” Mr Thick said. Completion of the acquisition of the US assets will occur this week.
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