Earthstone Provides Update

Rigzone.com provides an update of Earthstone.

The company participated in eight wells in calendar year 2010 in three fields: Banks, Mondak, and Indian Hill.

Banks field: four wells operated by Zenergy.
Mondak field: three wells operated by XTO, a subsidiary of XOM.
Indian Hill field: two wells operated by SM.

For individuals who can't keep track of their holdings, you are not alone:

The Mondak Federal 14X-11 was drilled, completed and placed on production during our last fiscal year. However, as previously reported, the Company did not learn it had an interest in the well until November 2010. As such, the capital expenditures for this well will be recognized in this fiscal year. The well had an initial potential of 1,175 barrels of oil per day and has cumulative production of approximately 57,000 barrels of oil, 36,000 MCF of gas and 38,000 barrels of water. Earthstone has a 2.2 % working interest in this well.

57,000 x $65 = $3.7 million
0.022 x $3.7 million = $81,000 before expenses.

And, another example of operations hindered by the forcing choke point and the severe winter weather:

The Mondak Federal 24X-12 was drilled in October and 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 850 barrels of oil per day. Earthstone has a 2.8 % working interest in this well.

Earthstone was previously known as Basic Earth Science System.