American Standard Energy Corporation Provides Operational Update and Guidance
SCOTTSDALE, Ariz., Sept. 28, 2011 /PRNewswire/ — American Standard Energy Corp (the “Company”) (OTCBB:ASEN), today announced its year to date operational results for the drilling activities in the Permian Basin, the Williston Basin, and the Eagle Ford. Highlights include:
- Launched a 10-well Wolfberry drilling program in Andrews County, Texas in July 2011.
- Launched a 10-well Wolfberry drilling program in Reagan County, Texas in August 2011.
- Launched a 6-well Wolfcamp drilling program in Crockett County, Texas in August 2011.
- 3 dedicated rigs drilling full time for the Company in the Permian Basin.
- Scheduled 5 completion dates for the Permian Basin Wolfberry wells. Currently negotiating for additional frac dates in the fourth quarter.
- IP data for the first two wells in the Permian Basin pending.
- Participated in 13 gross (1.3 net) wells in La Salle and Frio Counties in the Eagle Ford.
- Participated in 78 gross (1.13 net) Bakken and Three Forks wells in the Williston Basin.
- Total well count is currently 147 gross (37.8 net) wells, an increase of 297% in gross well count, and 299% increase in net well count compared to December 31, 2010.
- The Company’s 2011 daily exit rate is estimated at 2,000 barrels of oil equivalent, an increase of 3,348% compared to 2010 daily exit rate of 58 barrels of oil equivalent per day.
Permian Basin Current Producing Wells:
As of September 28, 2011, the Company currently holds working interests in 47 gross (26.2 net) Permian Basin producing wells:
Target Well Name Operator Formation County State WI L. Davis #1 XOG Spraberry Upton Texas 100.00% L. Davis #2 XOG Spraberry Upton Texas 100.00% Davies Lease XOG Pennsylvanian Upton Texas 100.00% H.C. Davies XOG Spraberry Upton Texas 100.00% Wilson O #1 XOG Wolfcamp, Upton Texas 100.00% Spraberry Wilson O #2 XOG Wolfcamp, Upton Texas 100.00% Spraberry Wilson O #3 XOG Wolfcamp, Upton Texas 100.00% Spraberry Wilson O #4 XOG Wolfcamp, Upton Texas 100.00% Spraberry J.F. Lane A A/C #1 XOG Devonian Upton Texas 100.00% Davies Estate #1 XOG Spraberry Upton Texas 100.00% Davies Estate #2 XOG Devonian Upton Texas 100.00% John Lane #1 XOG Strawn Upton Texas 100.00% John Lane #2 XOG Strawn Upton Texas 100.00% J.F. Lane A A/C #2-65 XOG Devonian Upton Texas 100.00% King Ranch Oil & Lignite XOG Devonian Upton Texas 100.00% JH Shirk Estate XOG Strawn Upton Texas 100.00% Jerry B Clayton "B" XOG Wolfcamp, Borden Texas 100.00% Spraberry Matula #1R XOG Gaines San Patricio Texas 99.00% Capps Farms Lease XOG Devonian Midland Texas 98.00% Capps Farms #1 XOG Devonian Midland Texas 98.00% Jordan B-1 XOG Wolfcamp Lea New Mexico 70.12% State WE L Apache South Morrow Lea New Mexico 49.80% Granger #1 Clark San Andres Gaines Texas 28.33% Cornett #1 & #2 Lease Clark San Andres Gaines Texas 28.33% University Y & Z Pits Clearfork Crane Texas 25.00% Reveley Gas Unit #1 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #2 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #3 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #4 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #5 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #6 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #7 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #8 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #9 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #10 Reliance Atoka Logan Arkansas 24.88% Reveley Gas Unit #11 Reliance Atoka Logan Arkansas 24.88% Federal 1x-5c & 5t XOG Atoka Logan Arkansas 24.88% Seabean #1 Clark San Andres Gaines Texas 22.40% Badger 30 State Nearburg Lea New Mexico 18.69% North Morrow Bell C#3 Pitts Glorieta Andrews Texas 15.32% Bell C#4 Pitts Glorieta Andrews Texas 15.19% Bell C#1 Pitts Glorieta Andrews Texas 15.06% Booger Bear "A" #2 Raw O&G Scurry Texas 11.91% Canyon Lime McGinty Pitts Devonian Yoakum Texas 6.67% Luther Gray Unit #1 Chevron- Britt Sand Grady Oklahoma 5.96% Texaco TCG #2 Trilogy Fusselman Glasscock Texas 5.00% TCG #1 Trilogy Fusselman Glasscock Texas 5.00%
*Current production also includes several wells in Arkansas and Oklahoma not part of the Permian Basin.
Permian Basin Current Drilling Activity:
The Company currently has three rigs drilling full-time in the Permian Basin, with one rig in Andrews, Reagan, and Crockett Counties. All current drilling activities listed are being supervised by Cambrian Management, a Wolfberry completion expert consulting firm and contract operator.
Target Well Name Operator Formation County WI Drilling Status University 8 #1 XOG Wolfcamp, Andrews 100.00% Completing Spraberry, Strawn University Andrews 42 #2 XOG Devonian Andrews 100.00% Completing University Andrews Completion 42 #1 XOG Wolfcamp, Andrews 100.00% Scheduled Spraberry, Strawn Completion University 8 #5 XOG Wolfcamp, Andrews 100.00% Scheduled Spraberry, Strawn Completion University 8 #3 XOG Wolfcamp, Andrews 100.00% Scheduled Spraberry, Strawn University Reagan 27 #1 XOG Wolfcamp, Reagan 100.00% Total Depth Spraberry, Strawn University Crockett 21A #1 XOG Wolfcamp Crockett 100.00% Total Depth University Crockett 21 #1 XOG Wolfcamp Crockett 100.00% Total Depth University Reagan 27 #2 XOG Wolfcamp, Reagan 100.00% Spud Spraberry, Strawn University Reagan 4 #1 XOG Wolfcamp, Reagan 100.00% Permitted Spraberry, Strawn University Reagan 4 #2 XOG Wolfcamp, Reagan 100.00% Permitted Spraberry, Strawn University Reagan 4 #5 XOG Wolfcamp, Reagan 100.00% Permitted Spraberry, Strawn University Reagan 4 #6 XOG Wolfcamp, Reagan 100.00% Permitted Spraberry, Strawn University Crockett 6 #1 XOG Wolfcamp Crockett 100.00% Permitted University 8 #2 XOG Wolfcamp, Andrews 100.00% Permitted Spraberry, Strawn University 8 #4 XOG Wolfcamp, Andrews 100.00% Permitted Spraberry, Strawn University 8 #6 XOG Wolfcamp, Andrews 100.00% Permitted Spraberry, Strawn University Andrews 42 #3 XOG Wolfcamp, Andrews 100.00% Permitted Spraberry, Strawn University Andrews 42 #4 XOG Wolfcamp, Andrews 100.00% Permitted Spraberry, Strawn
Eagle Ford Current Drilling Activity:
As of September 28, 2011, the Company currently holds working interests in 13 gross (1.30 net) Eagle Ford wells drilling, awaiting completion, or producing:
Target Well Name Operator Formation County Irvin Family #3 Cheyenne Eagle Ford LaSalle Irvin Family Unit A1H Cheyenne Eagle Ford LaSalle Irvin Family #2 Cheyenne Eagle Ford LaSalle Cromwell 1H Cheyenne Eagle Ford LaSalle Cromwell 2H Cheyenne Eagle Ford LaSalle Cromwell 3H Cheyenne Eagle Ford LaSalle Irvin Family Unit B1H Cheyenne Eagle Ford LaSalle ZCW 1H Cheyenne Eagle Ford LaSalle SJW 1H Cheyenne Eagle Ford LaSalle SJW 2H Cheyenne Eagle Ford LaSalle Aline Williams Unit A1H Cheyenne Eagle Ford Frio Aline Williams 1H Cheyenne Eagle Ford Frio Cromwell 4H Cheyenne Eagle Ford LaSalle
IP Well Name WI Drilling Status ("BOEPD") Irvin Family #3 10.00% Producing 1,591 Irvin Family Unit A1H 10.00% Waiting on Pump - Irvin Family Waiting on #2 10.00% Pipeline 965 Waiting on Cromwell 1H 10.00% Pipeline 1,192 Waiting on Cromwell 2H 10.00% Pipeline 993 Waiting on Cromwell 3H 10.00% Pipeline 1,207 Irvin Family Unit B1H 10.00% Completing - ZCW 1H 10.00% Completing - SJW 1H 10.00% Completing - SJW 2H 10.00% Completing - Aline Williams Drilling in Unit A1H 10.00% Progress - Aline Williams Drilling in 1H 10.00% Progress - Drilling in Cromwell 4H 10.00% Progress -
The "IP" means the initial production ("IP") rate expressed in barrels of oil per day. The IP rate is the 24-hour "Peak Production Rate." Peak Production Rates may be established following the initial day of production, depending on operator design or well flowback profiles. The IP rate may be estimated based on other third * party estimates or limited data available at this time.
Williston Basin Current Drilling Activity
As of September 28, 2011, the Company currently holds working interests in 51 gross (0.69 net) Bakken or Three Forks wells that are producing:
Target Well Name Operator Formation County WI Drilling Status Burke 17-23H EOG Bakken Mountrail 8.00% Producing Link 12-1H Zenergy Bakken McKenzie 6.26% Producing Hayes 1-6H Continental Bakken Williams 5.42% Producing Jorgenson 158-94- 11D-2-1H Petro-Hunt Bakken Mountrail 4.39% Producing Lazy DE #24-7H Marathon Bakken Dunn 4.20% Producing Lazy DE #34-7H Marathon Bakken Dunn 4.20% Producing Galen Fox USA 24-7H Marathon Bakken Mountrail 2.71% Producing Burke 27-07H EOG Bakken Mountrail 2.25% Producing Clearwater 7-04H EOG Bakken Mountrail 2.22% Producing Sidonia 17-1324H EOG Bakken Mountrail 1.88% Producing Kandiyohi 2-20H EOG Bakken Mountrail 1.72% Producing Dennis Kadrmas Occidental Bakken Dunn 1.56% Producing Mosser #11-27TFH Whiting Three Forks McKenzie 1.56% Producing Kerbaugh 31X-04 XTO Energy Three Forks Williams 1.56% Producing Allie 31X-24 XTO Energy Bakken Williams 1.35% Producing Ward 11X-23 XTO Energy Bakken Williams 1.33% Producing Skunk Creek Kodiak Oil & 2-24-25-15H Gas Bakken Dunn 1.19% Producing Skunk Creek Kodiak Oil & 2-24-25-16H Gas Bakken Dunn 1.19% Producing Sidonia 23-2017H EOG Bakken Mountrail 1.17% Producing Crowfoot 35-3031H EOG Bakken Mountrail 1.08% Producing Van Hook 7-23H EOG Bakken Mountrail 1.07% Producing Clearwater 010-03H EOG Bakken Mountrail 1.04% Producing Honolulu 1-22H Continental Bakken McKenzie 0.94% Producing Wolberg 21-18H Occidental Bakken Dunn 0.78% Producing EN Heinle 156-94-2536 Hess Bakken Mountrail 0.78% Producing Lippert 1-12 #1-H Well Brigham Bakken McKenzie 0.69% Producing RS-Brady - 157-91- 2223H-1 Hess Bakken Mountrail 0.67% Producing Clearwater 8-0506H EOG Bakken Mountrail 0.59% Producing Clearwater 102-0506H EOG Three Forks Mountrail 0.59% Producing Orf #1-20H Continental Bakken McKenzie 0.59% Producing Lostwood 20-1123H EOG Bakken Mountrail 0.49% Producing Lostwood 22-1423H EOG Bakken Mountrail 0.49% Producing Lostwood 21-1402H EOG Bakken Mountrail 0.49% Producing Lostwood 6-1102H EOG Bakken Mountrail 0.49% Producing HE 1-20H Continental Bakken McKenzie 0.48% Producing Cvancara 20-17 #1H Brigham Bakken Mountrail 0.44% Producing Barman 15-7H Hess Bakken Williams 0.42% Producing Kjorstad 5300 24-22H Oasis Bakken Williams 0.41% Producing Hodenfield 15-23H Hess Bakken Williams 0.31% Producing Hodenfield 15-7H Hess Bakken Williams 0.31% Producing Knoshaug 14-11 #1H Brigham Bakken Williams 0.30% Producing Harriet 1-22H Continental Bakken Divide 0.25% Producing Probe #1-19-30H Slawson Bakken Mountrail 0.25% Producing Clearwater 100-19H EOG Bakken Mountrail 0.24% Producing Bud 1-19H Continental Bakken Williams 0.24% Producing Twilight 1-24H Hess Bakken Williams 0.20% Producing Lisa Diane #15-22H Murex Bakken Williams 0.18% Producing Palermo 1-13-12H Hunt Bakken Mountrail 0.16% Producing Stepanek 8-5H Zenergy Bakken McKenzie 0.06% Producing Lansing 1-25H Continental Bakken McKenzie 0.08% Producing Trulson 11-14H Hunt Bakken Mountrail 0.03% Producing
As of September 28, 2011, the Company currently holds working interests in 27 gross (0.54 net) Bakken or Three Forks wells that are drilling or completing:
Target Well Name Operator Formation County WI Drilling Status Drone #1-32-27H Slawson Bakken Dunn 6.25% Completing Thomte Drilling in 8-5-163-99H Samson Bakken Divide 6.24% Progress Borden Federal Drilling in 5300 24-34H Oasis Bakken McKenzie 4.93% Progress Charles 3-10 Drilling in #1-H Brigham Bakken Williams 4.68% Progress Charles 3-10 Drilling in #2-H Brigham Bakken Williams 4.68% Progress Enns 28-21 Drilling in #1H Brigham Bakken Mountrail 4.49% Progress Carriere 5300 44-15H Oasis Bakken Williams 4.34% Completing Helstad 158- 99-34D- Drilling in 27-1H Petro-Hunt Bakken Williams 3.27% Progress Kellogg Drilling in Ranch 1-32H Continental Bakken McKenzie 3.27% Progress Oren USA Drilling in 31-6TFH Marathon Bakken Mountrail 2.79% Progress 1-H Breitling Drilling in 23-14 Newfield Bakken Williams 2.60% Progress Sidonia 26-2413H EOG Bakken Mountrail 1.85% Completing Harry Stroh 1-8-5H- 143-96 Occidental Bakken Dunn 1.56% Completing Drilling in Agnes 1-22H Continental Bakken Divide 1.56% Progress Sidonia 41-2017H EOG Bakken Mountrail 1.15% Completing Van Hook 17-23H EOG Bakken Mountrail 1.09% Completing EN -Charles Wood Hess Bakken McKenzie 0.66% Completing Pankake 157- 99-6A-7- Drilling in 1H Petro-Hunt Bakken Williams 0.57% Progress Hanover Federal Drilling in 5300 13-14H Oasis Bakken Williams 0.47% Progress Hagerup Drilling in 1-28H Continental Bakken Divide 0.46% Progress GO-Qualley 157-97- Drilling in 1102H-1 Hess Bakken Williams 0.39% Progress Lucy Hanson 15-22 #1-H Brigham Bakken Williams 0.31% Completing Elizabeth Stroh 1-7- Drilling in 6H-143-96 ConocoPhillips Bakken Dunn 0.26% Progress Kline Federal 5300 11-18H Oasis Bakken McKenzie 0.10% Completing Steele 1-24H Continental Bakken McKenzie 0.05% Completing Pierre 1-21H Continental Bakken Williams 0.05% Completing Wade 5300 21-30H Oasis Bakken McKenzie 0.02% Completing
In our second quarter 2011 10-Q, the Company reported average production of 558 BOEPD. Based on the additions to producing assets from minority working interest in completed wells in the Williston Basin, wells coming on line in the Eagle Ford, and additional 100% working interest production from the Company’s Permian Basin drilling programs, the Company forecasts a significant increase in daily production at the end of 2011. The Company estimates 2,000 BOEPD as an exit rate for 2011. This estimate excludes the beneficial impact of any additional acquisitions of producing properties.
In 2011, the Company spent $48.9 million combined on acreage acquisition and drilling activities through June 30, 2011. Of this amount, $30.6 million was for acreage acquisition, and $18.3 million was for drilling activities. We estimate that we will spend $45-50 million on drilling activities in the second half of 2011. All of the expected capital expenditures for the remainder of 2011 are expected to be financed with cash flows from operations and borrowings under the Company’s senior credit facility.
With the closing of the Macquarie Bank $300 million senior credit facility, the Company is currently working to finalize its 2012 capital budget. The Company estimates that its drilling and acquisition budget will be between $150 million and $200 million in 2012. These expenditures will primarily be in the Permian Basin and Williston Basin and will be approximately equally weighted. Any future acreage acquisitions may impact how drilling budgets are allocated.
Scott Feldhacker, CEO, commented, “I am pleased and excited of our progress in 2011; steady development across all our current assets, acquiring desirable acreage and production in the Bakken and the Permian Basin and finalizing a credit relationship that will allow the company to increase its developmental progress. Our operational control in the Permian Basin will prove to be the leading catalyst of growth going into 2012, as the Eagle Ford and Bakken provide increased developmental support throughout 2012.”
Richard MacQueen, President added, “We are approaching the Company’s one year anniversary of being public on October 1. It has been an extremely active year for the company from both an asset and production growth perspective. Over the past year we have made great strides in enhancing the company’s fundamentals while positioning the Company for accelerated growth in the year to come. We also executed three successful equity capital markets transactions, further diversifying our shareholder base to include a number of institutional investors.”
About American Standard Energy:
The Company is a non-operated exploration and production company based in Scottsdale, AZ. The Company’s primary focus is balanced between the Permian and the Bakken and Eagle Ford oil shale resource prospects in the continental United States. The Company currently controls approximately 40,000 net acres in the following three primary prospect areas:
- 32,300 core net acres targeting the Bakken/Three Forks in North Dakota;
- 6,500 net acres targeting the Permian formation in West Texas; and
- 1,200 net acres targeting a specific Eagle Ford prospect in South Texas
Except for the historical information contained herein, this press release contains forward-looking statements regarding future events and the Company’s future results that are subject to the safe harbors created under the Securities Act of 1933 (the “Securities Act”) and the Securities Exchange Act of 1934 (the “Exchange Act”). All statements other than statements of historical facts included in this report regarding the Company’s financial position, business strategy, plans and objectives of management for future operations, industry conditions, and indebtedness covenant compliance are forward-looking statements. When used in this report, forward-looking statements are generally accompanied by terms or phrases such as “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “target,” “plan,” “intend,” “seek,” “goal,” “will,” “should,” “may” or other words and similar expressions that convey the uncertainty of future events or outcomes. Items contemplating or making assumptions about, actual or potential future sales, market size, collaborations, and trends or operating results also constitute such forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties, and important factors (many of which are beyond the Company’s control) that could cause actual results to differ materially from those set forth in the forward-looking statements, including the following: oil and gas prices, the Company’s ability to raise capital, general economic or industry conditions nationally and/or in the communities in which the Company conducts business, changes in the interest rate environment, legislation or regulatory requirements, conditions of the securities markets, changes in accounting principles, policies or guidelines, financial or political instability, acts of war or terrorism, other economic, competitive, governmental, regulatory and technical factors affecting the Company’s operations, products, services and prices.
The Company has based these forward-looking statements on its current expectations and assumptions about future events. While the Company’s management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control.
CONTACT: Investor Relations Richard MacQueen President (480) 371-1929
SOURCE American Standard Energy Corp.