Tecolote Energy Announces Record 4,070 Boepd Well in the Western Anadarko Basin Panhandle Oil Window

TULSA, Okla.–(BUSINESS WIRE)–Tecolote Energy, LLC, (“Tecolote”) a private oil and gas exploration and
production company based in Tulsa, OK announced today record results
from four recently completed wells. The announcement includes the
highest reported 30-day initial production rate from a Tecolote operated
well to date and follows Tecolote’s previous announcement of record
results from an extended-lateral well in the Cleveland reservoir.

The Tecolote operated Meadows-Clifford 31-30 MD EX 2H extended lateral
well was completed in 9,933 feet of productive lateral within the
Marmaton ‘D’ formation and achieved the highest 30-day initial
production rate from a Tecolote operated well to date. The well produced
at a 30-day initial production rate of 3,802 barrels of oil equivalent
per day of which 50% of the production is comprised of oil and natural
gas liquids. Production rates on a 24-hour basis peaked 54 days after
first sales at 4,070 barrels of oil equivalent per day. The well
eclipsed Tecolote’s previous record of 2,439 barrels of oil equivalent
per day from the Mathers State 172-156 CL EX 1H well which was announced
in October 2017.

On the same pad, Tecolote completed the Meadows-Clifford 31-30 ME EX 1H
extended lateral well in 7,456 feet of productive lateral within the
Marmaton ‘E’ formation and achieved a 30-day initial production rate of
2,596 barrels of oil equivalent per day of which 54% of the production
is comprised of oil and natural gas liquids.

In addition, the company recently completed a separate two-well pad in
the Marmaton ‘D’ formation. The Hayes-Reid 18-9 MD EX 1HR was completed
in 8,369 feet of productive lateral and produced at a 30-day initial
production rate of 2,119 barrels of oil equivalent per day of which 54%
of the production is comprised of oil and natural gas liquids. The
second well on the pad, the Hayes-Reid 18-9 MD CX 2H was completed in
10,144 feet of productive lateral and produced at a 30-day initial
production rate of 2,016 barrels of oil equivalent per day of which 52%
of the production is comprised of oil and natural gas liquids.

To date, Tecolote has completed five consecutive extended lateral wells
in three separate Pennsylvanian reservoirs with modern completion and
stimulation techniques utilizing greater than 1,000 pounds of proppant
per foot of lateral length. The five wells average 9,700 feet of
productive lateral and an average 30-day initial production rate of
2,572 barrels of oil equivalent per day of which 59% of the production
is comprised of oil and natural gas liquids.

Tecolote is early in the application of modern drilling and stimulation
techniques in the Panhandle Oil Window. While over 2,000 horizontal
wells have been drilled in the play, only 22 wells are extended laterals
(>7,500’ completed lateral length) and only four wells are
super-extended laterals (>10,000’ completed lateral length). Tecolote
drilled all four of the wells with completed laterals in excess of
10,000 feet.

“Our drilling results in the area we call the Panhandle Oil Window
continue to exceed our expectations. As we apply new drilling and
completion technology to our long laterals we have seen the results
continue to improve and are demonstrating that our high flow rates are
repeatable across a large area,” said Tecolote’s CEO, Maurice Storm.

About Tecolote Energy, LLC:

Tecolote Energy, LLC is a private oil and gas exploration and production
company with offices in Tulsa, OK and Canadian, TX. Tecolote was formed
in 2015 with capital from the management team and NGP, a premier private
equity firm in energy capital management. Tecolote is applying extended
lateral drilling and modern completion techniques to the 16 stacked oil
and liquids-rich Pennsylvanian age reservoirs that underlie it’s 210,000
net HBP acres in the Panhandle Oil Window.

About NGP:

Founded in 1988, NGP is a premier private equity firm in the natural
resources industry with approximately $17 billion of cumulative equity
commitments organized to make strategic investments in the energy and
natural resources sectors. For more information visit www.ngpenergycapital.com.

Contacts

Tecolote Energy, LLC
Ryan Jech, 918-513-4100