The Frost #1H well, the company’s first well on the prospect, has reached total depth of approximately 10,000 feet, including an approximately 4,800-foot horizontal leg, and casing is being set. The operator has advised that it plans to initiate fracking of the well in the immediate future.
The well, located in the Northwest Shelf of the Midland Basis, targeted the “Exploration” component of the San Andres Formation. Houston American Energy holds a 12.5% working interest (subject to a 10% back-in after payout) in the 650-acre prospect.
Jim Schoonover, interim CEO of Houston American Energy, stated, “We are pleased to have completed drilling operations on our first San Andres well and look forward to the commencement of fracking operations and bringing the well on line. Drilling data has been encouraging and, based on that data, our operator has determined to move forward expeditiously with setting production facilities to facilitate the commencement of production as soon as possible following completion of fracking. We expect that the operator’s plans to commence construction of production facilities will allow us to avoid, or minimize, shutting-in the well pending construction of such facilities. As a result, we expect to save both cost and time bringing the well onto production, facilitating continuous production and cash flow.
“Depending on the ultimate results of the Frost #1 well, we anticipate that our existing acreage may support a multi-well development program. Our operator has previously indicated that our Yoakum County lease acreage may support up to five additional horizontal wells.”
Source: Company Press Release
