Matador Resources disclosed operational data on its oil and gas activities, as well as provided financial guidance on the company’s capital budget for 2012.
Matador Resources has set the company’s capital budget for this year at approximately $313 million, with 94% of the funds allocated to the exploration and development of hydrocarbon plays that produce crude oil and natural gas liquids.
Matador Resources said that the company made the decision to pursue these types of plays due to the higher prices for these commodities relative to natural gas and the higher returns offered through drilling here.
One area that Matador Resources is focused on in 2012 is the Eagle Ford Shale formation located in South Texas. The company plans to operate two rigs on its properties here in 2012.
Matador Resources expects to produce between 1.4 million and 1.5 million barrels of oil in 2012, a significant increase over 2011 oil production of 154,000 barrels. The company estimates that at the end of 2012 it will be producing between 5,000 and 5,500 barrels of oil per day.
Matador Resources plans to fund the company’s 2012 capital budget with internally generated cash flow and borrowings from its credit facility. The company has $125 million of availability under this facility.
For more information on the company, go to www.matadorresources.com
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