Freedom Oil and Gas Limited (ASX: FDM) today announced that the company has drilled seven wells in its oil-rich acreage located in the Eagle Ford shale of South Texas.
The drilling forms part of company’s Eagle Ford Shale development program in Dimmit County, Texas. Further, the company has already commenced the completion operation on the first three of those wells while three Vega wells located on the Wilson pad are reportedly scheduled to be completed and begin production in December 2018.
With the use of dedicated rig, the company is currently drilling the eighth well and further intends to drill approximately 16 wells within the remaining drilling contract period of 6-months ending mid-February 2019. The drilling of these new wells adds to the original six wells that were drilled in late 2017 and early 2018.
Freedom Chairman and Chief Executive Officer J. Michael Yeager stated that the average number of days needed for drilling have significantly reduced from 11.5 days taken in the three Vega wells drilling to about 9.3 days recorded on the most recent drilling undertaken by the company for three wells on the North Hovencamp pad.
“As a result, drilling costs per well have also declined and the company is now progressing its program to meet the target of drilling 16 wells by the end of the rig’s initial six-month contract on February 20, 2019. However, a decision to extend the drilling rig for an optional 6 months is expected to be made by the company in January 2019.”
Mr. Yeager confirmed that the drilling is executed in accordance with the drilling design program as the company is drilling the horizontal sections of each well, which are approximately 7,700 feet in length, and staying closely within its target producing zone of the Lower Eagle Ford Shale.
Freedom Oil and Gas Limited is into the exploration and production of oil and gas across the undeveloped acreage and production assets especially in United States unconventional shale plays. For the year ended 31 December 2018, the company reported consolidated revenue from operations to US$ 4.10 million, delivering a net loss of US$11.4 million compared to the previous corresponding period’s loss of US$46.1 million. As at 31st December 2018, cash balance of the company stood at US$25.97 million.
With this update, Freedom’s share price plunged 3.448% to last trade at $0.140 on 21 November 2018. And over the past one year, the stock has witnessed a performance change of 39.58%.
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