Morgan E&P achieves oil production from Bakken wells following drilling campaign

February 18, 2024

(WO) –Morgan E&P, LLC, a wholly-owned subsidiary of Equus, has completed its first two wells in Billings County, North Dakota, the Baranko 1-28H and the Obrigewitch 1-33H. Morgan received its drilling permits from the North Dakota Industrial Commission (“NDIC”) in September 2023 and successfully completed drilling in October. Both wells, along with construction of production facilities, were completed by the end of November.

Morgan drilled both wells into their target zones of the Middle Bakken, with the Baranko achieving a total depth of 19,920 ft and the Obrigewitch achieving a total depth of 21,356 ft. The wells were completed with 60-stage fracture stimulations.

The wells began flowback procedures on Dec. 3, 2023. To accelerate the flowback process, Electronic Submersible Pumps (ESPs) were installed in the wells. The installation was completed on Jan. 26, 2024. The ESPs are still removing water used to fracture the formation, resulting in an increasing oil cut.

Currently, the two wells are producing at a combined rate over 1,000 bopd. Morgan anticipates further increases as the wells continue flowback for the next few weeks. Morgan expects to publish its initial IP 30 rate towards the end of Q1 2024.

Morgan has completed a Purchase and Sale Agreement (“PSA”) for the divestiture of certain of its working interests to Bakken Partners I, LLC (“BPI”) in the amount of $5.6 million. The sale of working interests provides BPI an average of approximately 37% working interest prior to royalty and other working interest burdens and operating expenses in these first two horizontal wells.

The PSA provides BPI with an option to participate up to 15.0% in future wells, within the first two Drilling Space Units (“DSUs”) only, upon Morgan’s election to drill additional wells in these DSUs.

Morgan E&P is an upstream exploration and production company focused on the development of oil and gas assets throughout North America. Morgan is a wholly-owned subsidiary of Equus.


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