Ramp up to 1.500 BOPED in early 2022/Strong performance of recently drilled wells
Mannheim/Denver. Drilling and development activity on Bright Rock Energy’s Utah acreage will significantly accelerate over the course of 2021. In the second half of 2021 Bright Rock will in total invest 15.6 million USD in drilling and development capital. In total, the company will therefore invest 18 million in 2021 across 32 wells with an average working interest of 7.1%. As wells are completed through the end of 2021, Bright Rock is expected to produce 1.500 BOEPD, about a fourfold of the current production, from its Utah wells in the first quarter 2022.
Recent results in the basin compete with the best U.S. shale oil fields. It is also noteworthy that the wells target five different stacked zones, all of which are proven by nearby wells. Bright Rock calculates an rate of return (IRR) for the wells it is participating in between 35 to 75% at a flat USD 55 oil price. Pay back of invested funds is expected in a period of 1 to 2 years. The wells demonstrate the enormous potential of the Uinta-Basin.
The reason for this significant uptick in development capital is primarily the general activity level in the basin and the fact that operators have started to move towards tighter spacing of wells in single drilling units. Through participation in a series of drilling programs, acquisition of additional acreage and two recently concluded transactions with other basin players, Bright Rock has managed to create the basis for significantly higher production volumes going forward.
Mannheim, 30 August 2021
Deutsche Rohstoff identifies, develops and sells attractive raw material deposits in North America, Australia and Europe. The focus is on the development of oil and gas deposits in the USA. Metals such as gold and tungsten complete the portfolio. Further information can be found at www.rohstoff.de