Freedom Oil & Gas Ltd (ASX: FDM) is an independent oil and gas company based in Houston that has started its drilling operations in the area of the Eagle Ford Shale in South Texas. The company is currently in the growing stage of oil and gas exploration.
Freedom today provided the initial 30-day average production rate from six of its newly drilled horizontal wells in Dimmit County, Texas on its Eagle Ford acreage.
The six of its horizontal wells over the initial 30-day period are segregated below in the table:
According to J. Russell Porter, Chief Executive Officer and President of Freedom, the production rates from these six horizontal wells shows the spacing of 600-foot between wells which is less than the previously completed wellsâ foot space of 900-1000. He believes that KB 3H is the best functioning well among all these recently completed wells. Due to its position on the outside edge of the developed portion of the companyâs leasehold, it has sufficient spacing between wellbores which works in favour of its better performance. For this reason, some of the offset operators have planned to widen well spacing in the Lower Eagle Ford formation in the companyâs surrounding area.
Freedom is presently indulged in the drill work of its last of the three horizontal wells with a depth of 7,600-foot (the TAMU 1H, 2H and 4H wells). To minimise the interference with other adjacent wells, these three wells are drilled on around 840-foot spacing between Lower Eagle Ford wellbores.
The three TAMU wells are planned to be finished using âfar fieldâ diverters. On completion of these three wells, the company will be having 18 producing wells on its acreage. Freedomâs earlier plan to build the fourth TAMU well has been postponed considering the capital conservation. These three wells are being constructed under the drilling rig contract with Orion drilling and would be the final activity of the company under the current 6-month period.
Mr Porter is of the opinion that post the production of the KB and Persimmon wells, the companyâs total net production for the fourth quarter of 2018 is around 3,472 barrels of oil equivalent per day per well among which 2,822 BOE per day is on a two-stream basis as compared to the companyâs net rate of 1,506 barrels of oil equivalent per day per well (1,198 BOE per day on a two-stream basis).
The companyâs stock closed the marketâs trading session at AUD 0.071, up by 14.516% than the previous dayâs market price.
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