Earthstone begins 2021 drilling program in Midland County
March 12, 2021
Earthstone Energy Inc., The Woodlands, Tex., recently commenced its 2021 drilling program with the deployment of a rig in Midland County, Tex., with an expected 2021 capital expenditure budget of $90-100 million. Production guidance for the year is 19,500-21,000 boe/d (52-54% oil).
After drilling on a three-well pad in the Hamman project, the company expects to drill a four-well pad on the recently acquired Independence Resources Management (IRM) Spanish Pearl project. The company signed in December 2020 to acquire Warburg Pincus-backed IRM for $185.9 million (OGJ Online, Dec. 18, 2020). The deal closed Jan. 7.
The company then plans to move the rig to Upton County to drill 10-11 wells.
Overall, the company anticipates drilling 16 gross/14.8 net operated wells and spudding an additional 5 gross/3.7 net operated wells during 2021.
The company recently completed 5 gross/3.7 net wells in Upton County and anticipates turning these wells to sales before the end of March. In 2021, a total of 16 gross/13.5 net operated wells are expected to complete and turn to sales.
In fourth-quarter 2020, the company produced an average 14,809 boe/d. Full year 2020 average production was 15,276 boe/d with capital expenditures of $66.8 million comprised primarily of drilling and completion costs. Total net loss in 2021 was $29.4 million with an adjusted net income of $30.0 million.