Perth - Stonehorse Energy Limited (ASX: SHE) (Stonehorse or the Company) is pleased to provide the following update on sustained production results from the recently acquired Non-operated Working Interest in the Bullard Well #1-18-07-UWH.
The Bullard well is a Woodford Shale producer located in the southern core of the SCOOP Play in the Anadarko Basin in Oklahoma and is operated by Rimrock Resource Operating LLC.
Highlights
The 15.61% Non-operated Working Interest was acquired by Stonehorse from Brookside Energy Limited (ASX: BRK) on the 24th October 2019 (refer SHE ASX announcement dated 24th October 2019) with an effective date of 1st November 2019.
The Bullard Well has now been producing for approximately 14-months, having produced gross wellhead volumes of 167,000 barrels of oil and 1.0 Billion cubic feet (Bcf) of natural gas (335,000 BOE - 50% oil)
This well delivered an initial production rate (IP24) of 1,749 BOE per day (63% oil) and averaged 1,350 BOE per day in its first 90-days of production (62% oil)
To date this well has generated gross revenue of US$12.13m (representing a 100% working interest before royalty payments at realised pricing of US$58/Bbl. and US$1.61/Mcf) with the well now expected to achieve 'pay-out' in less than 2-years
The Bullard's performance to date has exceeded our initial forecasts with the now 'seasoned' production contributing meaningfully to operating revenue.
These results substantiate and support the Company's long-term strategy of building a portfolio of cash accretive oil and gas assets reflecting risk appetite and capital availability.
Commenting on the investments, Stonehorse's Executive Director David Deloub said; 'The Bullard well's performance to date has exceeded our expectations and supports our planned investments in the SCOOP and STACK Plays. This, coupled with our low-cost operating model provides us with financial and operational flexibility and validates the back-in after payout arrangement we have with our technical services provider effectively incentivising them to identify and offer only high quality opportunities forecast to pay-out quickly'.
Background
The overall objective of the Company is to implement its strategy of adopting a flexible approach to building a portfolio of high quality well bore assets with Working Interest percentages reflecting risk appetite and capital availability underpinned by the Step-in Agreement with Brookside. This Step-in Agreement provides the Company with access to a pipeline of well bore opportunities in the Anadarko Basin, including the potential to participate in non-operated wells in the core of the STACK Play and higher-impact wells in the emerging and highly sought after Sycamore-Woodford trend in the SCOOP Play.
The Bullard #1-18-07-UWH Well
Under the terms of the Step-in arrangement, Stonehorse exercised its right to step-into 15.61% Working Interest in this well located in the southern SCOOP Play in the Anadarko Basin.
The following chart shows the Bullard's current production to date (BOE per day/ monthly), and gross cumulative revenue. To date the well has generated gross revenue of US$12.13 million (representing a 100% Working Interest before royalty payments at realised pricing of US$58/Bbl. and US$1.61/Mcf) and it is ontrack to achieve payout in approximately 21-months.
Contact:
David Deloub
Tel: (+61 8) 6489 1600
Forward-Looking Statements and Other Disclaimers
This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Stonehorse Energy Limited ('Stonehorse Energy' or 'the Company'). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Stonehorse Energy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based. This announcement does not constitute investment advice. Shareholders should not rely on this announcement. This announcement does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require in order to make an informed assessment of Stonehorse Energy. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement. To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.
STONEHORSE ENERGY LIMITED 
