Dallas-based Sun River Energy Inc., a development stage upstream oil and gas company, has completed the Neal Heirs # 1 well in the Haynesville Shale formation in East Texas and turned it to production on March 31. The well was drilled vertically to a total depth of 11,057 feet in Panola County, Texas.
Located in the prolific Carthage Field, the well initially shut-in at 5,386 PSI tubing pressure after fracture treatment. Currently, it is producing both natural gas and crude oil and is flowing at 2,256 MCF a day with a constant flowing tubing pressure of 3,320 PSI.
Sun River Operating Inc. operates the well, and Sun River Energy Inc. owns a 77.5% working interest in the well.
Donal R. Schmidt, Jr., the company’s president and CEO, said, “It is always a relief to have your first well in a project come on like the Neal Heirs #1. The well exceeded our team's initial expectation in every way. We are presently preparing to drill two more wells in adjoining gas units and expect similar results. The Neal Heirs #1 confirms my belief that our team has what it takes to consistently develop deep unconventional gas at an attractive cost. Our preliminary estimate is that the net finding and development cost per MCFE of proved gas in this well will be around $1.24. This will place us at the top of low cost producers in our sector of the natural gas market.”