MTDR to add third rig late Q3

[dan_s]

Matador Resources remains on track to add a rig in late summer that will start drilling test wells on newly acquired acreage in New Mexico.

This week, Dallas-based Matador (NYSE: MTDR) completed the joint venture with the HEYCO Energy Group, Inc. to acquire the acreage totaling more than 59,000 acres. As part of the deal, George Yates, president of the HEYCO Energy Group, joined the Matador board of directors.
As far as adding the rig, David Lancaster, executive vice president and CFO of Matador, said they are encouraged by crude oil prices, which have hovered around $60 a barrel for several weeks.

“Our clear expectation is that we will have the third rig,” Lancaster said. "It will enable us to spud four or five additional wells that we wouldn’t have done otherwise.”

The new rig will be put to work on the land acquired from HEYCO in Lea and Eddy counties in New Mexico.