Chaparral Energy Announces Robust Results from Recent Canadian County Spacing Tests

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OKLAHOMA CITY, May 28, 2019 (GLOBE NEWSWIRE) -- Chaparral Energy, Inc. (NYSE: CHAP) today announced an operational update for its recent 11-well cube style, co-development Foraker spacing test, as well as its three-well Denali partial spacing test in Canadian County. The company also announced participation in several upcoming investor conferences.

• Continued excellent performance from drilling and completion capital program wells has increased total company production to more than 28,000 Boe/d and forecasted second quarter 2019 production is expected to be above the high end of its previously announced guidance range of 26,000 - 27,500 barrels of oil equivalent per day (Boe/d)

• Announced average 30-day initial production (IP) results for all 11, single-mile Foraker wells of 1,357 Boe/d, with 48% oil

• Continued strong results from the single-mile, three-well partial section Denali spacing test

“We are excited about the outstanding initial results we have seen from our operated Canadian County spacing tests,” said Chief Executive Officer Earl Reynolds. “The Foraker 11-well cube style, co-development spacing test has clearly demonstrated enhanced productivity, which we believe helps to validate the upside potential of our cube-style, co-development approach moving forward. The nine Meramec wells had an average 30-day IP rate of 1,491 Boe/d, which is 170% of our type curve expectations. The Woodford wells are also performing above type curve, with 30-day IP rates of 754 Boe/d, or 102% of our type curve expectations. All 11 wells continue to flow naturally with no artificial lift and the bottom hole pressure drawdown and gas-oil ratio (GOR) trends are similar to nearby offset wells. These outstanding production results, coupled with costs at or below our type curve estimates, lead us to believe these wells will be some of the most economic and capital efficient wells Chaparral has ever drilled.”   

“In addition to the Foraker results, we released additional information about our Denali spacing test, which has been online since September 2018,” Reynolds continued. “The three-well Denali test had average initial 30-day IP rates similar to the Foraker wells at 1,290 Boe/d. These wells have continued to maintain strong performance and are 145% of our oil type curve expectations after 260 days of production. The knowledge and results gained from our two Meramec-target Denali partial section spacing test were incorporated in our Foraker full section development and were instrumental in helping maximize results. We will continue to enhance our knowledge, apply operational efficiencies and implement learnings on future spacing tests as we build upon our recent success.”

“With our current production in excess of 28,000 Boe/d, we expect to exceed the high end of our previously issued second quarter guidance. Our excellent capital efficient results, such as the Foraker test, allow us to profitably grow production and increase cash flow. This further increases our confidence that we have the capital resources to continue to execute our planned capital program and move closer to achieving cash flow neutrality. As a reminder, following the Foraker spacing test, we transitioned from four to three rigs and expect our second half 2019 capital spend will be lower than the first half. We are proud of our results and remain committed to creating long-term value for our shareholders,” Reynolds concluded.

The average 30-day IP rate for all 11 wells was 1,357 Boe/d, with 48% oil and 73% liquids. The nine Meramec wells had an average 30-day IP rate of 1,491 Boe/d, with 50% oil and 74% liquids. All nine Meramec wells are significantly outperforming the company’s type curve expectations and have achieved 30-day and 60-day oil IP rates at 230% and 195% of oil type curve respectively. The bounded, or middle wells in the Meramec formation, are performing in line and in some cases better than the half bounded wells. The two Woodford wells had an average 30-day IP rate of 754 Boe/d, with 39% oil and 69% liquids. These Woodford wells are outperforming the company’s type curve expectations, with an average 30-day and 60-day oil IP rate at 138% and 120% of oil type curve respectively.

In addition, the average capital cost per well for the Foraker test continues to track below Chaparral’s average AFE estimates of approximately $4.4 million. This was primarily driven by drilling and completion efficiency gains, with the company realizing significant increases in drilling feet per day and frac stages completed per day. As such, the cycle time was accelerated to 133 days from spud to first sales and the entire project was brought online two weeks ahead of schedule.

In the third quarter of 2018, Chaparral brought online its first Canadian County Merge Miss partial section spacing test. The three-well Denali pad exceeded type curve expectations, producing at an average 30-day IP rate of 1,290 Boe/d per well, of which 75% was liquids. These wells have continued to perform above type curve, with a 60-day IP rate of 1,149 Boe/d (140% of type curve) and a 90-day IP rate of 1,032 Boe/d (134% of type curve). These wells have now been on production for more than 260 days and have achieved 145% of the company’s oil type curve expectations. 



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Globe Newswire: 21:30 GMT Tuesday 28th May 2019

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