New Gulf Resources, LLC Announces Results from Vertical Lower Cretaceous "Buda-Rose" play in Madison County, Texas
TULSA, Okla., June 4, 2015 /PRNewswire/ -- New Gulf Resources, LLC (the "Company" or "NGR") announced today the recent well results from its Vertical Lower Cretaceous ("Buda-Rose") project located in Madison County, Texas.
NGR is currently completing its seventh well in the play. NGR owns and operates more than 53,000 net acres and over 1000 drilling locations prospective for Buda-Rose in Madison, Grimes and Walker counties. The Company is drilling vertical wells that commingle production from up to five zones in a given wellbore. The Company's Six Shooter well resulted in a thirty day average production in excess of 473 barrels of oil equivalent per day ("BOEPD") from the commingled lower cretaceous Buda, Georgetown, Edwards, and Glen Rose formations. In addition, the Iron Duke well produced 595 BOEPD in its initial 24-hour commingled production test with only the Buda and Georgetown formations completed and contributing at this time. Both wells have additional behind pipe zones that will be added to the commingled production at a later date, including the Eagle Ford. NGR continues to test individual zones in its wells to optimize production and reserves in future drilling. "We are seeing contribution from multiple lower cretaceous zones in each of our wells while lowering our costs, making for some very attractive economics," said Ralph Hill, Chairman and CEO. The Company continues to focus on efficiency, and its most recent vertical well was drilled in 6.5 days to a depth of approximately 11,000 feet. Hill remarked, "We have studied and tested individual zones across our acreage and now believe we will be able to optimize a manufacturing approach at the appropriate time. Additionally, we are analyzing which zones we will ultimately be able to drill horizontally as well, which should enhance the value of our position in a material way".
NGR is running one rig in the Buda-Rose play and plans to continue at the same pace in the near term, then ramp up drilling as the pricing environment improves. Additionally, NGR will add a second rig this month to drill the first of 400 or more potential horizontal locations in its Eagle Ford play in Grimes County.
About New Gulf Resources, LLC
New Gulf Resources, LLC (www.newgulfresources.com) is based in Tulsa, Oklahoma and owns, manages and operates upstream energy projects, primarily in East Texas. NGR is highly experienced in the application of advanced technologies such as horizontal drilling and multi-stage fracture stimulation to maximize the value of U.S. oil reserves. NGR owns over 83,000 net mineral leasehold acres in the prolific Woodbine, Eagle Ford and Lower Cretaceous plays. NGR acquired a large position in East Texas in 2014 from Halcόn Resources Corporation, which added to an existing position and excellent track record in the basin.
SOURCE New Gulf Resources, LLC
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