After the market closed on Friday, Monogram Energy announced that it has obtained rights to workover the Mobhun 1 well in Pecos County, Texas. Mobhun 1’s last production was in 1998 when it was shut down because of the low oil prices. The Company’s analysis of the well and its reserves anticipate it should produce approximately 150-250 barrels per month.
The CEO of the company stated, “With our second well acquisition announced today, management feels confident that we will meet our goal of 50 additional wells for our Workover Program by year’s end. We will continue to identify and procure the rights to promising leases. We anticipate cumulative initial production of 10,000 barrels of oil per month once all wells have completed the Workover Program.”
Monogram plans to maintain steady growth by acquiring and enhancing properties that have proven production in the past. The company intends to reinvest the net operating cash flows to expand existing production and acquire new producing properties through a balanced mix of debt and equity.
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