American Energy Update

Of the first four American Energy (AEZ) wells of high interest, three have now been reported, and all have been very good wells.

The Summerfield 15-15H is in Bear Creek, not a particularly well known field but in a fairly active area. The Little Knife and Rattlesnake Point oil fields are in the area. The Rattlesnake Point oil field recently caught my interest with announcement of a CLR Eco-Pad there as well as another CLR Eco-Pad in the immediate area (Jim Creek oil field). The Summerfield is a short lateral and was fracture stimulated with 14 stages. AEZ owns an approximate 33% working interest in this well.

Ron Viall 1-25H is a wildcat that was clearly in an undeveloped area and was a very nice well, at least based on initial results. Time will tell how good the well really was. But if it turns out to be a good well, we have more evidence that there are still "new" places to go for oil in the Williston Basin. The Ron Viall had a similarly high flowback rate and averaged 1,748 bopd in its first seven production days.

Tong Trust 1-20H is in the Ray oil field.  The town of Ray is near the epicenter of the oil success in the Williston Basin, but it is a small oil field and hasn't been particularly active.

Taken as a whole, it certainly appears that AEZ has staked out some new areas and has been very successful, at least based on initial results.

Again, AEZ tends to report 24-hour flowback rates which are significantly higher than the 30-day average. I assume the 30-day average will be closer to 800 and then further decline over the next 60 days where daily production will start to plateau at 500 barrels/day if they are to remain "good" wells.