Mexco Energy Corporation announced production results of two new wells in the Two Georges (Bone Spring) formation in Loving County, Texas.
The first of these horizontal wells, operated by Energen Resources Corporation, produced at an average rate of approximately 266 barrels of oil and 919,000 cubic feet of natural gas per day, during the month of February 2015.
The second of these two wells had an initial potential test over 24 hours of 296 barrels of oil 894,000 cubic feet of gas with flowing tubing pressure of 3,050 pounds per square inch. The results are not necessarily indicative of future rates of production or reserves. These two wells are the second and third of three. Mexco's ownership in these two wells is approximately a 1.12% royalty interest (expense free).
Also, Mexco announced the addition of interests in two recently drilled and completed oil wells. A third well is in the process of being completed. These two new wells initially produced respectively at rates of 51 and 49 barrels of oil per day in which Mexco owns a 12.5% (approximately 10% net revenue interest) non-operated working interests. Now eight wells are producing on 20-acre spacing with one additional proven undeveloped location at approximately 3,600 foot depth in the 190 acres in Pecos County, Texas.