At the end of last week, Royale Energy Inc. (NASDAQ:ROYL) announced a successful initial drill operation in the Ballinger oil field in Runnels County, Texas, as the company completed its Royale Ballinger #1 well.
In May of this year, Royale entered into an agreement to drill and develop 2,299 acres in the producing Ballinger oil field. According to a press release on behalf of the company, Royale has drilled two of three scheduled wells, on time and under budget.
Ballinger #1 was completed in the Palo Pinto North formation at 3,400 feet and tested at a rate of 80 barrels per day. With an estimated 70 percent oil cut, it’s indicated that sustained production will rest around 15 barrels of oil per day.
“Establishing production from the Ballinger #1 adds a large base of proved reserves in our Texas Eastern shelf Permian Basin oil properties,” stated Co-President and Co-CEO Stephen Hosmer. “Reserves could exceed 750,000 barrels of oil in estimated ultimate recoverable reserves over the entire field even at today’s prices.”
The second well in completion, Royale’s Mosley #1, has reached total depth and is expected to be on time for completion testing sometime this week. Drilling will commence on Royale’s third well, Lynn #1, by August 31, 2015. The company stated that given the results of the first three wells, Royale could drill as many as 50 to 70 wells for full field development.