OKLAHOMA CITY--(BUSINESS WIRE)--
Roan Resources, Inc. (NYSE: ROAN) (“Roan” or the “Company”) announced it
is positively updating guidance for the second quarter of 2019.
Specifically, the Company anticipates second quarter production to
exceed 50 thousand barrels of oil equivalent (MBoe) per day, which
compares to adjusted guidance of approximately 49 MBoe/d, when
accounting for ethane rejection(1).
Additionally, due to drilling and completion costs continuing to trend
lower, the Company is projecting CAPEX to come in approximately 10%
below original second quarter guidance of $155 million.
The Mad Play unit, along with the Mayes wells from the Earl and Victory
Slide units, continue to be strong producing wells. Updated results for
these wells are as follows:
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4-well Mad Play unit had an average per well 30-day IP rate of 1,602
Boe/d (44% oil, 20% NGLs, 36% gas) from a normalized 10,000-foot
lateral
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3 Mayes wells from the Earl unit had an average per well 30-day IP of
1,466 Boe/d (39% oil, 24% NGLs, 37% gas) from a normalized 10,000-foot
lateral
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2 Mayes wells from the Victory Slide pad had an average per well
30-day IP rate of 1,109 Boe/d (71% oil, 14% NGLs, 15% gas) from a
normalized 10,000-foot lateral
The Company anticipates 14 gross operated wells to be turned to first
sales during June and July. These wells are spaced and being completed
in accordance with the Company’s improved development program of 2019
and anticipates strong performance results from this group of wells.
“We remain focused on executing on our development program and achieving
free cash flow by the fourth quarter of 2019 while still growing
production 20-25% year over year,” said Joseph A. Mills, Roan’s
Executive Chairman of the Board. “With respect to operations, based on
preliminary results, our second quarter production results are
outperforming on a lower capital spend. We are expecting several strong
wells to come online through July that will further exemplify the
meaningful operational optimizations the Company has made. In addition,
the Company remains very engaged with the strategic initiative process
with its advisors and has executed multiple NDA’s with interested
parties.”
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1)
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The Company elected to reject ethane in the month of June,
which impacts monthly volumes by approximately 3.3 MBoe/d.
Previous second quarter guidance of 50 MBoe/d incorporated ethane
recovery in June.
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About Roan Resources
Roan is an independent oil and natural gas company headquartered in
Oklahoma City, OK focused on the development, exploration and
acquisition of unconventional oil and natural gas reserves in the Merge,
SCOOP and STACK plays of the Anadarko Basin in Oklahoma.
For more information, please visit www.RoanResources.com,
where we routinely post announcements, updates, events, investor
information, presentations and recent news releases.
Cautionary Statements
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended.
All statements, other than statements of historical fact, are
forward-looking statements which contain our current expectations about
future results. These forward-looking statements are based on certain
assumptions and expectations made by the Company, which reflect
management’s experience, estimates and perception of historical trends,
current conditions and anticipated future developments. Such statements
are subject to a number of assumptions, risks and uncertainties, many of
which are beyond the control of the Company, which may cause actual
results to differ materially from those implied or anticipated in the
forward-looking statements. When considering these forward-looking
statements, you should keep in mind the risk factors and other
cautionary statements found in the Company’s filings with the Securities
and Exchange Commission, including its Current Report on Form 8-K, filed
September 24, 2018 and any subsequently filed quarterly reports on Form
10-Q or current reports on Form 8-K.
We caution you that these forward-looking statements are subject to
all of the risks and uncertainties, most of which are difficult to
predict and many of which are beyond our control, or incidental to the
development, production, gathering and sale of oil, natural gas and
NGLs. These risks include, but are not limited to, commodity price
volatility, inflation, lack of availability of drilling and production
equipment and services, environmental risks, drilling and other
operating risks, regulatory changes, the uncertainty inherent in
estimating reserves and in projecting future rates of production, cash
flow and access to capital, the timing of development expenditures and
the other risks.
Should one or more of the risks or uncertainties described occur, or
should underlying assumptions prove incorrect, our actual results and
plans could differ materially from those expressed in any
forward-looking statements.
All forward-looking statements, expressed or implied, included in
this release are expressly qualified in their entirety by this
cautionary statement. This cautionary statement should also be
considered in connection with any subsequent written or oral
forward-looking statements that we or persons acting on our behalf may
issue.
Except as otherwise required by applicable law, we disclaim any duty
to update any forward-looking statements, all of which are expressly
qualified by the statements in this section, to reflect events or
circumstances after the date of this release.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190614005078/en/
Investor Contact:
Alyson Gilbert
Investor Relations
Manager
405-896-3767
[email protected]
Source: Roan Resources, Inc.