“We are soon to be drilling on the Stover Lease, near the Stover #1 which had an IP of 40 barrels of oil a day (BOD). This Fentress County lease and other leases we own that have established oil production, which gives us excellent additional drilling locations to develop,” said Alan Murrell, Hornet President. “We plan to drill these development locations on our producing leases well into 2016.
Murrell cited a recent American Oil & Gas Reporter article that noted that the Appalachian Basin is one of the few areas in the country where it can be profitable to drill, even at $20 oil. The article mentioned several Hornet wells as examples of profitable, low-cost, shallow wells in the Appalachian Basin.
“We have several advantages in Tennessee, including low drilling cost, shallow wells and multiple pays. In addition, wells in this area seldom need much more than a small acid job to stimulate production. Certainly, not the expensive multiple-stage frac jobs required in many producing areas of the country,” he added.
Hornet’s Ray #1, was the best well in the state in 2014 and continues producing today and has now produced more than 33,850 barrels of oil.
“We have also drilled other very successful wells in the last couple years, including the Green #2 and the Hensley #1 and fully expect to continue to develop the Tennessee oil fields we have discovered,” explained Murrell. “And we are continuing an aggressive leasing program as well.
“We know we can drill these wells profitably at today’s prices,” he stated, “and they will be still be producing well into the future when oil prices recover.” He added.