Press Release – updated: Aug 11, 2017 07:00 EDT
Denver, Colorado, August 11, 2017 – Fifth Creek Energy Company, LLC, an exploration, and production company operating in the DJ Basin in rural northern Weld County Colorado, announced the results of its initial four well development program on its Hereford property. The Company drilled three Codell wells and one Niobrara well; all four drilled to a total average lateral length of 9,229 feet. Peak 30-day production rates from these wells averaged 1,031 Boe/d with crude oil and natural gas liquids accounting for approximately 88% of the production stream. The Fox Creek 222 achieved a peak 30-day production rate of 1,221 Boe/d; its oil rate for the same period of 1,010 Bo/d ranks as the fifth best peak month rate for a Niobrara well ever reported in the DJ Basin. The wells averaged an IP90 rate of 765 Boe/d with the Fox Creek 222 producing approximately 85,000 Boe through its first 100 days on production.
The Company also announced that its total current acreage in Hereford is 80,332 net acres. After acquiring the Hereford asset in July 2016, Fifth Creek has added approximately 30,000 net acres through organic leasing efforts and two recently closed bolt-on transactions. The northern DJ Basin contains a stacked-pay reservoir prospective for the Niobrara B and C benches and the Codell, with similar geological characteristics to the greater Wattenberg Field.
Fifth Creek recently completed its mid-year reserves assessment, updating from its year-end 2016 reserves report prepared by Netherland Sewell & Associates, Inc. Proved reserves increased 54% from 113 MMBoe at year-end 2016 to 173 MMBoe at mid-year with 314 gross Proved Undeveloped two-mile lateral drilling locations. The NPV10 for Fifth Creek’s Proved Reserves at June 30, 2017 strip pricing is $1.1 billion. During the same period, Proved and Probable reserves increased 63% from 256 MMBoe to 418 MMBoe. Including acquisitions subsequent to June 30, total Proved and Probable reserves increased to 499 MMBoe. The Company’s Proved and Probable two-mile lateral drilling inventory currently stands at 1,462 gross locations across the Niobrara B, C and Codell.
Michael Starzer, Fifth Creek’s Chairman and CEO, commented, “Fifth Creek and its investors are very encouraged by the progress achieved on the Hereford asset in a short period of time. Fifth Creek’s team of talented professionals led by Patrick Graham, Fifth Creek’s COO, has proven that the resource in the northern DJ Basin utilizing modern completion technology is competitive with the best of the Wattenberg Field.
“It is our intention to delineate the property with further testing of enhanced completion technology in 2017, continuing to show tremendous results, and bring to the market in 2018 what we consider a vastly differentiated asset. The Hereford property sits on the Wyoming border and enjoys a rural development setting, good infrastructure including a gas processing facility on the property, which guarantees less than 50 psig at the wellhead, and attractive crude oil differentials of less than $2.25 off WTI. Combine this with some of the best wells in the DJ Basin and a 20-year drilling inventory that totals 1,777 identified two-mile lateral locations, we believe Fifth Creek is well positioned to create extraordinary value.”
Fifth Creek Energy will present at EnerCom’s The Oil & Gas Conference on Wednesday, August 16, 2017, in Denver, Colorado at the Westin Denver Downtown. The Company’s presentation is scheduled as part of the Private Company Panel at 1:30 p.m. Mountain Time in Confluence C. The presentation will be webcast live and may be accessed at the conference website, www.theoilandgasconference.com. In addition, the Company has published an updated corporate presentation on its website, www.fifthcreekenergy.com.
About Fifth Creek Energy
Fifth Creek Energy is an exploration and production company headquartered in Denver, Colorado, focused on developing prolific oil and gas reserves from the Denver-Julesburg Basin (DJ Basin). Our management team has operated assets in the DJ Basin and built companies in Colorado for nearly two decades.
The information contained herein is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities in the Company.
Source: Fifth Creek Energy
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