American Standard Energy Corporation Provides Operational Update and Guidance

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Sep 28, 2011, 08:24 ET

SCOTTSDALE, Ariz., Sept. 28, 2011 /PRNewswire/ -- American Standard Energy Corp (the "Company") (OTCBB:ASEN), today announced its year to date operational results for the drilling activities in the Permian Basin, the Williston Basin, and the Eagle Ford. Highlights include:

Launched a 10-well Wolfberry drilling program in Andrews County, Texas in July 2011.
Launched a 10-well Wolfberry drilling program in Reagan County, Texas in August 2011.
Launched a 6-well Wolfcamp drilling program in Crockett County, Texas in August 2011.
3 dedicated rigs drilling full time for the Company in the Permian Basin.
Scheduled 5 completion dates for the Permian Basin Wolfberry wells. Currently negotiating for additional frac dates in the fourth quarter.
IP data for the first two wells in the Permian Basin pending.
Participated in 13 gross (1.3 net) wells in La Salle and Frio Counties in the Eagle Ford.
Participated in 78 gross (1.13 net) Bakken and Three Forks wells in the Williston Basin.
Total well count is currently 147 gross (37.8 net) wells, an increase of 297% in gross well count, and 299% increase in net well count compared to December 31, 2010.
The Company's 2011 daily exit rate is estimated at 2,000 barrels of oil equivalent, an increase of 3,348% compared to 2010 daily exit rate of 58 barrels of oil equivalent per day.

Permian Basin Current Producing Wells:

As of September 28, 2011, the Company currently holds working interests in 47 gross (26.2 net) Permian Basin producing wells:


Well Name	Operator	Target Formation	County	State	WI
L. Davis #1	XOG	Spraberry	Upton	Texas	100.00%
L. Davis #2	XOG	Spraberry	Upton	Texas	100.00%
Davies Lease	XOG	Pennsylvanian	Upton	Texas	100.00%
H.C. Davies	XOG	Spraberry	Upton	Texas	100.00%
Wilson O #1	XOG	Wolfcamp, Spraberry	Upton	Texas	100.00%
Wilson O #2	XOG	Wolfcamp, Spraberry	Upton	Texas	100.00%
Wilson O #3	XOG	Wolfcamp, Spraberry	Upton	Texas	100.00%
Wilson O #4	XOG	Wolfcamp, Spraberry	Upton	Texas	100.00%
J.F. Lane A A/C #1	XOG	Devonian	Upton	Texas	100.00%
Davies Estate #1	XOG	Spraberry	Upton	Texas	100.00%
Davies Estate #2	XOG	Devonian	Upton	Texas	100.00%
John Lane #1	XOG	Strawn	Upton	Texas	100.00%
John Lane #2	XOG	Strawn	Upton	Texas	100.00%
J.F. Lane A A/C #2-65	XOG	Devonian	Upton	Texas	100.00%
King Ranch Oil & Lignite	XOG	Devonian	Upton	Texas	100.00%
JH Shirk Estate	XOG	Strawn	Upton	Texas	100.00%
Jerry B Clayton "B"	XOG	Wolfcamp, Spraberry	Borden	Texas	100.00%
Matula #1R	XOG	Gaines	San Patricio	Texas	99.00%
Capps Farms Lease	XOG	Devonian	Midland	Texas	98.00%
Capps Farms #1	XOG	Devonian	Midland	Texas	98.00%
Jordan B-1	XOG	Wolfcamp	Lea	New Mexico	70.12%
State WE L	Apache	South Morrow	Lea	New Mexico	49.80%
Granger #1	Clark	San Andres	Gaines	Texas	28.33%
Cornett #1 & #2 Lease	Clark	San Andres	Gaines	Texas	28.33%
University Y & Z	Pits	Clearfork	Crane	Texas	25.00%
Reveley Gas Unit #1	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #2	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #3	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #4	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #5	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #6	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #7	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #8	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #9	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #10	Reliance	Atoka	Logan	Arkansas	24.88%
Reveley Gas Unit #11	Reliance	Atoka	Logan	Arkansas	24.88%
Federal 1x-5c & 5t	XOG	Atoka	Logan	Arkansas	24.88%
Seabean #1	Clark	San Andres	Gaines	Texas	22.40%
Badger 30 State	Nearburg	North Morrow	Lea	New Mexico	18.69%
Bell C#3	Pitts	Glorieta	Andrews	Texas	15.32%
Bell C#4	Pitts	Glorieta	Andrews	Texas	15.19%
Bell C#1	Pitts	Glorieta	Andrews	Texas	15.06%
Booger Bear "A" #2	Raw O&G	Canyon Lime	Scurry	Texas	11.91%
McGinty	Pitts	Devonian	Yoakum	Texas	6.67%
Luther Gray Unit #1	Chevron- Texaco	Britt Sand	Grady	Oklahoma	5.96%
TCG #2	Trilogy	Fusselman	Glasscock	Texas	5.00%
TCG #1	Trilogy	Fusselman	Glasscock	Texas	5.00%

*Current production also includes several wells in Arkansas and Oklahoma not part of the Permian Basin.

Permian Basin Current Drilling Activity:

The Company currently has three rigs drilling full-time in the Permian Basin, with one rig in Andrews, Reagan, and Crockett Counties. All current drilling activities listed are being supervised by Cambrian Management, a Wolfberry completion expert consulting firm and contract operator.


Well Name	Operator	Target Formation	County	WI	Drilling Status
University 8 #1	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Completing
University Andrews 42 #2	XOG	Devonian	Andrews	100.00%	Completing
University Andrews 42 #1	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Completion Scheduled
University 8 #5	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Completion Scheduled
University 8 #3	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Completion Scheduled
University Reagan 27 #1	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Total Depth
University Crockett 21A #1	XOG	Wolfcamp	Crockett	100.00%	Total Depth
University Crockett 21 #1	XOG	Wolfcamp	Crockett	100.00%	Total Depth
University Reagan 27 #2	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Spud
University Reagan 4 #1	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Permitted
University Reagan 4 #2	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Permitted
University Reagan 4 #5	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Permitted
University Reagan 4 #6	XOG	Wolfcamp, Spraberry, Strawn	Reagan	100.00%	Permitted
University Crockett 6 #1	XOG	Wolfcamp	Crockett	100.00%	Permitted
University 8 #2	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Permitted
University 8 #4	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Permitted
University 8 #6	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Permitted
University Andrews 42 #3	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Permitted
University Andrews 42 #4	XOG	Wolfcamp, Spraberry, Strawn	Andrews	100.00%	Permitted

Eagle Ford Current Drilling Activity:

As of September 28, 2011, the Company currently holds working interests in 13 gross (1.30 net) Eagle Ford wells drilling, awaiting completion, or producing:


Well Name	Operator	Target Formation	County	WI	Drilling Status	IP ("BOEPD")
Irvin Family #3	Cheyenne	Eagle Ford	LaSalle	10.00%	Producing	1,591
Irvin Family Unit A1H	Cheyenne	Eagle Ford	LaSalle	10.00%	Waiting on Pump	-
Irvin Family #2	Cheyenne	Eagle Ford	LaSalle	10.00%	Waiting on Pipeline	965
Cromwell 1H	Cheyenne	Eagle Ford	LaSalle	10.00%	Waiting on Pipeline	1,192
Cromwell 2H	Cheyenne	Eagle Ford	LaSalle	10.00%	Waiting on Pipeline	993
Cromwell 3H	Cheyenne	Eagle Ford	LaSalle	10.00%	Waiting on Pipeline	1,207
Irvin Family Unit B1H	Cheyenne	Eagle Ford	LaSalle	10.00%	Completing	-
ZCW 1H	Cheyenne	Eagle Ford	LaSalle	10.00%	Completing	-
SJW 1H	Cheyenne	Eagle Ford	LaSalle	10.00%	Completing	-
SJW 2H	Cheyenne	Eagle Ford	LaSalle	10.00%	Completing	-
Aline Williams Unit A1H	Cheyenne	Eagle Ford	Frio	10.00%	Drilling in Progress	-
Aline Williams 1H	Cheyenne	Eagle Ford	Frio	10.00%	Drilling in Progress	-
Cromwell 4H	Cheyenne	Eagle Ford	LaSalle	10.00%	Drilling in Progress	-


*	The "IP" means the initial production ("IP") rate expressed in barrels of oil per day. The IP rate is the 24-hour "Peak Production Rate." Peak Production Rates may be established following the initial day of production, depending on operator design or well flowback profiles. The IP rate may be estimated based on other third party estimates or limited data available at this time.

Williston Basin Current Drilling Activity

As of September 28, 2011, the Company currently holds working interests in 51 gross (0.69 net) Bakken or Three Forks wells that are producing:


Well Name	Operator	Target Formation	County	WI	Drilling Status
Burke 17-23H	EOG	Bakken	Mountrail	8.00%	Producing
Link 12-1H	Zenergy	Bakken	McKenzie	6.26%	Producing
Hayes 1-6H	Continental	Bakken	Williams	5.42%	Producing
Jorgenson 158-94-11D-2-1H	Petro-Hunt	Bakken	Mountrail	4.39%	Producing
Lazy DE #24-7H	Marathon	Bakken	Dunn	4.20%	Producing
Lazy DE #34-7H	Marathon	Bakken	Dunn	4.20%	Producing
Galen Fox USA 24-7H	Marathon	Bakken	Mountrail	2.71%	Producing
Burke 27-07H	EOG	Bakken	Mountrail	2.25%	Producing
Clearwater 7-04H	EOG	Bakken	Mountrail	2.22%	Producing
Sidonia 17-1324H	EOG	Bakken	Mountrail	1.88%	Producing
Kandiyohi 2-20H	EOG	Bakken	Mountrail	1.72%	Producing
Dennis Kadrmas	Occidental	Bakken	Dunn	1.56%	Producing
Mosser #11-27TFH	Whiting	Three Forks	McKenzie	1.56%	Producing
Kerbaugh 31X-04	XTO Energy	Three Forks	Williams	1.56%	Producing
Allie 31X-24	XTO Energy	Bakken	Williams	1.35%	Producing
Ward 11X-23	XTO Energy	Bakken	Williams	1.33%	Producing
Skunk Creek 2-24-25-15H	Kodiak Oil & Gas	Bakken	Dunn	1.19%	Producing
Skunk Creek 2-24-25-16H	Kodiak Oil & Gas	Bakken	Dunn	1.19%	Producing
Sidonia 23-2017H	EOG	Bakken	Mountrail	1.17%	Producing
Crowfoot 35-3031H	EOG	Bakken	Mountrail	1.08%	Producing
Van Hook 7-23H	EOG	Bakken	Mountrail	1.07%	Producing
Clearwater 010-03H	EOG	Bakken	Mountrail	1.04%	Producing
Honolulu 1-22H	Continental	Bakken	McKenzie	0.94%	Producing
Wolberg 21-18H	Occidental	Bakken	Dunn	0.78%	Producing
EN Heinle 156-94-2536	Hess	Bakken	Mountrail	0.78%	Producing
Lippert 1-12 #1-H Well	Brigham	Bakken	McKenzie	0.69%	Producing
RS-Brady -157-91-2223H-1	Hess	Bakken	Mountrail	0.67%	Producing
Clearwater 8-0506H	EOG	Bakken	Mountrail	0.59%	Producing
Clearwater 102-0506H	EOG	Three Forks	Mountrail	0.59%	Producing
Orf #1-20H	Continental	Bakken	McKenzie	0.59%	Producing
Lostwood 20-1123H	EOG	Bakken	Mountrail	0.49%	Producing
Lostwood 22-1423H	EOG	Bakken	Mountrail	0.49%	Producing
Lostwood 21-1402H	EOG	Bakken	Mountrail	0.49%	Producing
Lostwood 6-1102H	EOG	Bakken	Mountrail	0.49%	Producing
HE 1-20H	Continental	Bakken	McKenzie	0.48%	Producing
Cvancara 20-17 #1H	Brigham	Bakken	Mountrail	0.44%	Producing
Barman 15-7H	Hess	Bakken	Williams	0.42%	Producing
Kjorstad 5300 24-22H	Oasis	Bakken	Williams	0.41%	Producing
Hodenfield 15-23H	Hess	Bakken	Williams	0.31%	Producing
Hodenfield 15-7H	Hess	Bakken	Williams	0.31%	Producing
Knoshaug 14-11 #1H	Brigham	Bakken	Williams	0.30%	Producing
Harriet 1-22H	Continental	Bakken	Divide	0.25%	Producing
Probe #1-19-30H	Slawson	Bakken	Mountrail	0.25%	Producing
Clearwater 100-19H	EOG	Bakken	Mountrail	0.24%	Producing
Bud 1-19H	Continental	Bakken	Williams	0.24%	Producing
Twilight 1-24H	Hess	Bakken	Williams	0.20%	Producing
Lisa Diane #15-22H	Murex	Bakken	Williams	0.18%	Producing
Palermo 1-13-12H	Hunt	Bakken	Mountrail	0.16%	Producing
Stepanek 8-5H	Zenergy	Bakken	McKenzie	0.06%	Producing
Lansing 1-25H	Continental	Bakken	McKenzie	0.08%	Producing
Trulson 11-14H	Hunt	Bakken	Mountrail	0.03%	Producing

As of September 28, 2011, the Company currently holds working interests in 27 gross (0.54 net) Bakken or Three Forks wells that are drilling or completing:


Well Name	Operator	Target Formation	County	WI	Drilling Status
Drone #1-32-27H	Slawson	Bakken	Dunn	6.25%	Completing
Thomte 8-5-163-99H	Samson	Bakken	Divide	6.24%	Drilling in Progress
Borden Federal 5300 24-34H	Oasis	Bakken	McKenzie	4.93%	Drilling in Progress
Charles 3-10 #1-H	Brigham	Bakken	Williams	4.68%	Drilling in Progress
Charles 3-10 #2-H	Brigham	Bakken	Williams	4.68%	Drilling in Progress
Enns 28-21 #1H	Brigham	Bakken	Mountrail	4.49%	Drilling in Progress
Carriere 5300 44-15H	Oasis	Bakken	Williams	4.34%	Completing
Helstad 158-99-34D-27-1H	Petro-Hunt	Bakken	Williams	3.27%	Drilling in Progress
Kellogg Ranch 1-32H	Continental	Bakken	McKenzie	3.27%	Drilling in Progress
Oren USA 31-6TFH	Marathon	Bakken	Mountrail	2.79%	Drilling in Progress
1-H Breitling 23-14	Newfield	Bakken	Williams	2.60%	Drilling in Progress
Sidonia 26-2413H	EOG	Bakken	Mountrail	1.85%	Completing
Harry Stroh 1-8-5H-143-96	Occidental	Bakken	Dunn	1.56%	Completing
Agnes 1-22H	Continental	Bakken	Divide	1.56%	Drilling in Progress
Sidonia 41-2017H	EOG	Bakken	Mountrail	1.15%	Completing
Van Hook 17-23H	EOG	Bakken	Mountrail	1.09%	Completing
EN - Charles Wood	Hess	Bakken	McKenzie	0.66%	Completing
Pankake 157-99-6A-7-1H	Petro-Hunt	Bakken	Williams	0.57%	Drilling in Progress
Hanover Federal 5300 13-14H	Oasis	Bakken	Williams	0.47%	Drilling in Progress
Hagerup 1-28H	Continental	Bakken	Divide	0.46%	Drilling in Progress
GO-Qualley 157-97-1102H-1	Hess	Bakken	Williams	0.39%	Drilling in Progress
Lucy Hanson 15-22 #1-H	Brigham	Bakken	Williams	0.31%	Completing
Elizabeth Stroh 1-7-6H-143-96	ConocoPhillips	Bakken	Dunn	0.26%	Drilling in Progress
Kline Federal 5300 11-18H	Oasis	Bakken	McKenzie	0.10%	Completing
Steele 1-24H	Continental	Bakken	McKenzie	0.05%	Completing
Pierre 1-21H	Continental	Bakken	Williams	0.05%	Completing
Wade 5300 21-30H	Oasis	Bakken	McKenzie	0.02%	Completing

Production:

In our second quarter 2011 10-Q, the Company reported average production of 558 BOEPD. Based on the additions to producing assets from minority working interest in completed wells in the Williston Basin, wells coming on line in the Eagle Ford, and additional 100% working interest production from the Company's Permian Basin drilling programs, the Company forecasts a significant increase in daily production at the end of 2011. The Company estimates 2,000 BOEPD as an exit rate for 2011. This estimate excludes the beneficial impact of any additional acquisitions of producing properties.

Capital Expenditures:

In 2011, the Company spent $48.9 million combined on acreage acquisition and drilling activities through June 30, 2011. Of this amount, $30.6 million was for acreage acquisition, and $18.3 million was for drilling activities. We estimate that we will spend $45-50 million on drilling activities in the second half of 2011. All of the expected capital expenditures for the remainder of 2011 are expected to be financed with cash flows from operations and borrowings under the Company's senior credit facility.

With the closing of the Macquarie Bank $300 million senior credit facility, the Company is currently working to finalize its 2012 capital budget. The Company estimates that its drilling and acquisition budget will be between $150 million and $200 million in 2012. These expenditures will primarily be in the Permian Basin and Williston Basin and will be approximately equally weighted. Any future acreage acquisitions may impact how drilling budgets are allocated.

Management Commentary:

Scott Feldhacker, CEO, commented, "I am pleased and excited of our progress in 2011; steady development across all our current assets, acquiring desirable acreage and production in the Bakken and the Permian Basin and finalizing a credit relationship that will allow the company to increase its developmental progress. Our operational control in the Permian Basin will prove to be the leading catalyst of growth going into 2012, as the Eagle Ford and Bakken provide increased developmental support throughout 2012."

Richard MacQueen, President added, "We are approaching the Company's one year anniversary of being public on October 1. It has been an extremely active year for the company from both an asset and production growth perspective. Over the past year we have made great strides in enhancing the company's fundamentals while positioning the Company for accelerated growth in the year to come. We also executed three successful equity capital markets transactions, further diversifying our shareholder base to include a number of institutional investors."

About American Standard Energy:

The Company is a non-operated exploration and production company based in Scottsdale, AZ. The Company's primary focus is balanced between the Permian and the Bakken and Eagle Ford oil shale resource prospects in the continental United States. The Company currently controls approximately 40,000 net acres in the following three primary prospect areas:

32,300 core net acres targeting the Bakken/Three Forks in North Dakota;
6,500 net acres targeting the Permian formation in West Texas; and
1,200 net acres targeting a specific Eagle Ford prospect in South Texas

FORWARD-LOOKING STATEMENTS

Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and the Company's future results that are subject to the safe harbors created under the Securities Act of 1933 (the "Securities Act") and the Securities Exchange Act of 1934 (the "Exchange Act"). All statements other than statements of historical facts included in this report regarding the Company's financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as "estimate," "project," "predict," "believe," "expect," "anticipate," "target," "plan," "intend," "seek," "goal," "will," "should," "may" or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company's control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, the Company's ability to raise capital, general economic or industry conditions nationally and/or in the communities in which the Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting the Company's operations, products, services and prices.

The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company's management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company's control.