Eagle Ford-focused Lonestar expects more output
US shale producer Lonestar Resources said July 15 it expected production during the second half of the year to be at the high-end of guidance.
CEO Frank Bracken III said that production was expected in the range of 11,500-12,000 barrels of oil equivalent (boe)/day during the second half of the year. The wells it put onstream this year in the Eagle Ford shale basin produced 12,750 boe/d in June, with much of that in natural gas and natural gas liquids.
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It is currently drilling a three-well pad at the Hawkeye reserve within Eagle Ford.
The US Energy Information Administration (EIA) puts Eagle Ford as the third-largest oil producer and the fifth-largest gas producer among the seven primary shale basins. Production is expected to decline slightly in both oil and natural gas from July to August, according to the EIA’s latest drilling productivity report.
Bracken added that he expects the company to realise $23bn in adjusted Ebitdax and see cash flow at $19mn, exceeding its guidance of between $16mn and $18mn for discretionary cash flow.
The announcement came one day after Eagle Ford-focused Penn Energy said it would acquire Lonestar in an all-stock transaction.
Lonestar exited bankruptcy in November after eight months, eliminating some $390mn in aggregate debt obligations. It still had net debt of $239mn during the three months ending March 31.
The merger is expected to close during the second half of this year.