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Alta Mesa Cuts Rig Count Down to Two (-67%) in Q1 as it Turns Focus to DUCs

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   |    Monday,May 20,2019

Alta Mesa Resources, Inc. reported a operational and financial update for Q1 2019.

• First quarter 2019 production is estimated to be 37,800 BOEPD (48% oil, 71% liquids) - up 58% YOY from 24,000 BOEPD

Cuts Rig Count from Six to Two; Focus on DUCs

Alta Mesa Upstream entered the year with six rigs actively working and reduced the rig count to zero by the end of January.  A new development program was restarted in March by completing 16 drilled and uncompleted wells (DUCs) and operating two drilling rigs. 

The Company’s objective with the development program is to improve economic returns through a revised well spacing pattern of four or five wells per section, improved lateral placement and lower well costs.  U

nder the reinvigorated development program, Alta Mesa Upstream has drilled 10 wells completing eight patterns (including the DUCs) and through May 17, 2019 had brought 22 new wells onto production.  These wells are all tied into Kingfisher Midstream’s system.

Well Costs

The wells drilled and completed in 2019 have been averaging less than $3.0 million per well compared to $4.5 million per well experienced by the end of the previous drilling program.  The Company has also made material progress on reducing lease operating expenses on a unit cost basis and lowering recurring general and administrative costs.  More detail will be provided when it reports first quarter 2019 financial results.