Rio Bravo Oil, Inc. (OTCBB: RIOB), a domestic onshore oil company, announced today that it has completed drilling its first horizontal Edwards formation well, the DG Tiller #4H. The well demonstrated the presence of hydrocarbon during drilling and has the potential to produce approximately 150 barrels of oil per day and to cumulatively produce up to approximately 250,000 barrels of oil. The well is located within the Salt Flat Field, in Luling, Texas. Well completion will conclude this week, and the well will be placed on production. The company estimates that it will be able to determine the optimal production level of the well within 30 days.
The Company also equipped and put into production four inactive Austin Chalk wells. These wells are each producing several barrels of oil per day, and following a review period the Company will determine their stabilized production and expected cumulative production. Lastly, the Company is in the process of testing for additional reserves in the DG Tiller #3H. Following results from its current capital projects, Rio Bravo believes that it will be able to increase its stated reserve position.
Rio Bravo's CEO, Tom Bowman , commented, "We have taken the important first steps. Our first horizontal well was drilled in zone and has good contact with the upper Edwards formation. We remain focused on delivering shareholder value. Obtaining production from our recent efforts should strengthen the value of our overall reserve position."
This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More