- Stonehorse Energy (SHE) opens green on the ASX today after announcing its joint-owned Jewell Well has started producing oil, gas and natural gas liquids
- Stonehorse owns 50 per cent of the Jewell Well through Black Mesa Energy, a joint venture (JV) operation with fellow ASX-listed Brookside Energy (BRK)
- Alongside the news of the Jewell Well production, Stonehorse says it is taking up a 0.21 per cent interest in two other wells in the Anadarko Basin, Oklahoma
- Executive Director David Deloub says the minority interest in the two new wells adds “low-risk incremental revenue” to the company’s portfolio
- Shares in Stonehorse Energy are up 4.35 per cent and trading at 2.4 cents each at 10:19 am AEST
Stonehorse Energy (SHE) has opened green on the ASX today after it announced its joint-owned Jewell Well has started producing oil, gas and natural gas liquids.
The company also announced to investors this morning a decision to take up a 0.21 per cent working interest in two other wells also in the STACK Play in the Anadarko Basin, Oklahoma.
Stonehorse owns 50 per cent of the Jewell Well through Black Mesa Energy, a joint venture (JV) operation with fellow ASX-listed Brookside Energy (BRK).
Brookside and Stonehorse announced this morning the Jewell Well is producing premium light sweet crude and liquids-rich gas.
What’s more, oil and gas flow rates from the well are already approaching pre-drill base case volume estimates, according to the JV partners.
Stonehorse Executive Director David Deloub said the combination of sweet crude and liquids-rich gas being produced from the well will help further enhance Jewell’s economic success.
Meanwhile, the 0.21-per-cent working interest in the two extra Anadarko Basin wells builds on Stonehorse’s existing minority interest in the area.
The company took hold of a minority interest in the Randolph 1-34-27XHM well back in January 2020, with around $30,000 in operating revenue hitting Stonehorse’s books from this well since then.
Stonehorse’s new minority-interest wells are Randolph infill wells operated by Continental Resources.
“The incremental investment in the Continental-operated Randolph infill wells adds low-risk incremental revenue and is consistent with our current strategy of building on our current portfolio of working interests,” Mr Deloub said.
“Whilst we continue to assess opportunities located in continental United States, we are increasingly focused on diversifying our portfolio of producing oil and gas wells and turning our attention to identifying and assessing opportunities to participate in oil and gas well projects located on the eastern seaboard of Australia.”
Stonehorse said a focus on Australian assets is a “geographical departure” from its historic US focus, but the current economic climate and existing infrastructure down under presents an opportunity to de-risk its portfolio of oil-and-gas-producing assets.
Shares in Stonehorse Energy were up 4.35 per cent and trading at 2.4 cents each at 10:19 am AEST. The company has a $13.69 million market cap.