DENVER, Oct. 7, 2013 (GLOBE NEWSWIRE) -- Recovery Energy, Inc. (Nasdaq:RECV), an independent oil and gas exploration and production company with operations and assets in the Denver-Julesburg Basin, today announced the successful results of its remediation and workover of the Anderson 32-2 well on its Silo East Prospect located in Laramie County, Wyoming. The Company is pleased to report that the Anderson 32-2 is currently producing 50-60 BOPD, up substantially from the approximate production level of 3 BOPD prior to initiation of the remediation procedures.
In June 2013, Recovery Energy Inc. acquired a 50% interest in the 1,200 acre area that comprises the Silo East Prospect, including a 50% interest in the Anderson 32-2 well. A re-entry program was designed for the Anderson well with a view toward enhancing the productivity of the Muddy "J" formation by perforating additional areas of the formation and stimulating the formation with a hydraulic fracture treatment. The Company believes that the successful conclusion of these procedures establishes a "proof of concept" completion program for the prospect and sets up several potential offsets to the Anderson well. The Company anticipates that at least two additional offsets will be drilled by the end of the first quarter of 2014, with up to a total of twelve locations required to fully develop the field.
"We are very pleased with the success of the remediation procedures, and anxious to proceed with the development of additional wells in the field," said A. Bradley Gabbard, Chief Operating Officer of Recovery Energy.
"Referring to our Letter to Shareholders of August 29, 2013, the Anderson 32-2 is the first well utilizing the proceeds of the debenture recently funded by some of our own executives and other affiliates of earlier investors in our convertible debentures," said Avi Mirman, President of Recovery Energy. "Slowly but surely, we hope to continue building confidence and look forward to accelerating our drilling program, with emphasis on our Wattenberg Field properties."
About Recovery Energy, Inc.
Recovery Energy, Inc. ("Recovery Energy") is a Denver-based independent oil and gas exploration and production company that operates in the Denver-Julesburg (DJ) Basin where it holds approximately 130,000 gross, 115,000 net acres. Recovery Energy's focus is to grow reserves and production through a combination of acquisitions and conventional and unconventional drilling activity, targeting the various oil-bearing formations that produce in the DJ Basin.
Forward Looking Statements
This press release may include or incorporate by reference "forward-looking statements" as defined by the SEC, including statements, without limitation, regarding the Company's expectations, beliefs, intentions or strategies regarding the future. Such forward-looking statements relate to, among other things the Company's: (1) proposed exploration and drilling operations, (2) expected production and revenue, and (3) estimates regarding the reserve potential of its properties. These statements are qualified by important factors that could cause the Company's actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company's ability to finance its continued exploration and drilling operations, (2) positive confirmation of the reserves, production and operating expenses associated with the Company's properties; and (3) the general risks associated with oil and gas exploration and development, including those risks and factors described from time to time in the Company's reports and registration statements filed with the SEC.