Earthstone Energy supplied an update of its recent North Dakota activity. During the past year the Company has participated in eight new horizontal wells in three distinct areas of North Dakota; the Banks Field, the Mondak Field and Indian Hill Field.

Banks Field, McKenzie County In the Banks area, the Company participated in four wells; all of which were operated by Zenergy, Inc; a private company headquartered in Tulsa, Oklahoma. The Pederson #10-3H was drilled in April 2010 and is now both producing and no longer on confidential status. The well had an initial potential of 522 barrels of oil per day and has cumulative production of approximately 65,000 barrels of oil, 109,000 MCF of gas and 35,000 barrels of water. In February 2011, the well was re-entered to clean debris out the horizontal lateral of the well. Following this work, the well is producing approximately 350 barrels of oil per day. Earthstone has a 2.4 % working interest in this well.

The Ceynar 29-32H was drilled in November 2010. Efforts to complete and hydraulically stimulate the well were hampered by harsh winter conditions. As a result, the well has just recently been placed on production. The well is still on confidential status and an initial production rate has not been released by the Operator. However, the Company estimates that the well will have an initial potential of approximately 1,000 barrels of oil per day. Earthstone has a 0.132 % working interest in this well.

The A. Johnson 12-1H and the Berquist 33-28H are currently being drilled. Earthstone has a 0.084 % and 0.18% working interest in these wells, respectively. Both wells are expected to be on production by late May.

The Company previously reported that Brigham Exploration Company, Austin, TX, had purchased Panther Energy Company, LLC's, Tulsa, OK, interest in the Banks area. Brigham had previously indicated that they planned to drill two or more wells prior to the end of 2010. While that did not occur, Earthstone has recently received drilling proposals for two wells; the Garmin 19-18 #1H and the Enerud 9-4 #2H. Drilling is expected to begin on both wells by early summer. Earthstone expects to have less than 1% working interest in both wells.

Tags: Earthstone Energy