GEOI's headline story was announcing the drilling of their first Eagle Ford well in south Texas.
However, the Bakken update was quite interesting. They are in the process of completing their fourth well. They have just added a second dedicated drilling team, and will be adding a third rig early in 2012.
We recently added a second dedicated drilling rig to our Williams County project area which is now on location and should spud our sixth Middle Bakken well, the Rasmussen 1-25-36H, within the next few days.
We plan to add a third drilling rig to this area shortly after the end of this year. Our intent, similar to our Eagle Ford project, is to accelerate drilling in the second half of 2011 and into 2012. We anticipate a higher level of production from our operated project area in the third quarter of 2011 compared to the second quarter of 2011 due to less downtime on existing producing wells with improved weather conditions and additional production from new well completions. As we proceed in developing this project area, we expect each operated rig to drill 9-11 gross wells per year.
To date, we have acquired approximately 25,000 net acres in our Williams County project area, generally representing a 47.5% working interest, within an area of mutual interest (“AMI”) being developed with industry participants. We are the operator for our group. Assuming full development on 1,280 acre spacing units, our group will have varying interests in 100 units.
