Terrace Energy Corp. announce continuing success in its horizontal drilling program on its STS Olmos Project in South Texas, USA with its partner, BlackBrush Oil & Gas LP. Its latest horizontal well, the STS AW A1-17H well, was drilled to a measured depth of 14,215 feet, including a horizontal section of approximately 4,300 feet in the target interval and was successfully fracture stimulated in 18 stages.
After less than 5% load recovery, the well is stabilizing at a rate of approximately 627 BOPD (barrels of oil per day) and 2.6 MMCFD (million cubic feet per day) of liquid rich gas. All of the wells in this project will be tied into the wet gas gathering system located on the STS Project and delivered into a high efficiency natural gas liquids extraction plant. Based on the current test rate, liquids recoverable through the extraction plant are expected to effectively increase this well's revenue stream to over 1200 BOEPD (barrels of oil equivalent per day). There can be no assurance that the flow rate will stabilize at current or higher levels over time.