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Lonestar Hits Production Record in Q3 as it Accelerates Eagle Ford Drilling

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Lonestar Resources reported its Q3 2018 results.

Production Record in Q3 at 12.5 MBOEPD:

• Production volumes exceeded the Company's guidance of 11,800 - 12,200 Boe/d and were 81% crude oil and NGL's on an equivalent basis. The increase in production was attributable to the drilling and completion of 8.0 gross / 6.8 net wells during the quarter.

Ops - Expanded Eagle Ford Drilling

In the third quarter of 2018, Lonestar aggressively expanded its Eagle Ford producing well count, placing 8.0 gross / 6.8 net wells online, which included 3.0 gross / 2.4 net wells in Karnes County and 5.0 / 4.4 net wells in Gonzales County. Lonestar expects to continue to grow production organically during the fourth quarter, as it anticipates placing 4.0 gross / 3.3 net wells online during 4Q18. This includes 2.0 gross / 2.0 net wells at Asherton placed into flowback in October, and 2.0 gross / 1.3 net wells at Hawkeye scheduled to begin flowback operations in mid-December.

Western Region

Asherton - In October 2018, the Company completed drilling operations on the Asherton #1HN and Asherton #3HN to total measured depths of 17,725 feet and 17,730 feet, respectively. The Asherton #1HN and #3HN wells were fracture-stimulated in engineered completions using diverters with an average proppant concentration of 1,985 pounds per foot over 37 stages and 36 stages, respectively. On average, these wells were completed with a perforated interval of 10,788 feet and tested 1,053 Boe/d (three stream) on a 32/64'' choke. The Asherton #1HN was completed with a perforated interval of 10,780 feet and tested 962 Bbls/d of oil and 1,202 Mcf/d of natural gas, or 1,237 Boe/d (three-stream) on a 32/64'' choke. The Asherton #3HN, which immediately offsets wells that have produced for 4 years, was completed with a perforated interval of 10,795 feet and tested 673 Bbls/d of oil and 1,254 Mcf/d of natural gas, or 960 Boe/d (three-stream) on a 32/64'' choke. Lonestar owns a 99% working interest ("WI") and 75% Net Revenue Interest ("NRI") in these two wells.

Beall Ranch - In Dimmit County, no new wells were completed during the three months ended September 30, 2018. The Beall Ranch leasehold is held by production, and Lonestar does not currently plan any drilling activity here in 2018.

Burns Ranch Area - In La Salle County, no new wells were completed during the three months ended September 30, 2018. Lonestar is currently mobilizing a drilling rig to Burns Ranch to drill three laterals. These wells are expected to begin flowback operations in February 2019. Lonestar owns a 100% WI and 75% NRI in these wells.

Horned Frog - Lonestar has drilled its first four wells utilizing its Geo-Engineered completion design during 2018. In June, the Company began flowback operations on the Horned Frog NW #2H and Horned Frog NW #3H. These wells, which reached peak rate in July, have now been producing for in excess of four months and the results continue to be encouraging. Through the first 120 days, the Horned Frog NW #2H has produced a cumulative 58,000 barrels of oil and 253,000 Mcf of natural gas, or 118,000 barrels of oil equivalent on a three-stream basis. Over the same period, the Horned Frog NW #3H has produced a cumulative 56,000 barrels of oil and 241,000 Mcf of natural gas, or 113,000 barrels of oil equivalent on a three-stream basis. The Horned Frog NW wells have continued to exceed forecast, outperforming third-party projections by 11%. Lonestar holds a 100% WI and 75% NRI in these wells and has an additional 5 drilling locations offsetting these wells.

Lonestar owns a 100% WI in the Horned Frog G #1H and Horned Frog H #1H, which were placed onstream in March 2018. These wells have now been producing for in excess of seven months and the results continue to outperform projections. During the first 210 days of production, the Horned Frog G #1H has produced cumulative production of 72,000 barrels of oil and 1,317,000 Mcf of natural gas, or 385,000 barrels of oil equivalent on a three-stream basis, an average of 1,832 Boe/d over its first 210 days of production. Over the same period, the Horned Frog H #1H has produced cumulative production of 67,000 barrels of oil and 1,230,000 Mcf of natural gas, or 359,000 barrels of oil equivalent on a three-stream basis, an average of 1,708 Boe/d over its first 210 days of production. Through their first seven months, these have outperformed third-party projections by 15%, the majority of which has been comprised of crude oil contribution.

Central Region

Cyclone - In July 2018, Lonestar completed the Cyclone DM #13H and Cyclone DM #14H to measured depths of 20,205 feet and 19,685 feet, respectively. As seismic indicated a potential fault, the Cyclone DM #13H well was steered higher within the Lower Eagle Ford shale, out of our target window for approximately 47% of the wells producing lateral. The Cyclone DM #13H has a perforated interval of 10,056 feet and produced at a Max 30-day production rate of 500 Boe/d, consisting of 443 barrels of oil per day, 26 barrels of natural gas liquids per day, and 186 Mcf per day of natural gas. The Cyclone DM #14H, drilled subsequently, was drilled lower in section in the Lower Eagle Ford in our target zone and has a perforated interval of 9,600 feet. The #14H produced at a Max 30-day production rate of 649 Boe/d, consisting of 578 barrels of oil per day, 32 barrels of natural gas liquids per day, and 233 Mcf per day of natural gas. Lonestar owns a 100% WI and 78.5% NRI in these wells.

Hawkeye - Lonestar owns an 87.5% WI in the Hawkeye #1H and Hawkeye #2H, which were placed onstream in January 2018. The Hawkeye wells have continued to deliver exceptional productivity, with oil production outperforming third-party projections by 24%. Now online in excess of nine months, the Hawkeye #1H has produced a cumulative 151,000 barrels of oil and 82,000 Mcf of natural gas, or 170,000 barrels of oil equivalent on a three-stream basis. Over the same period, the Hawkeye #2H has produced a cumulative 128,000 barrels of oil and 72,000 Mcf of natural gas, or 137,000 barrels of oil equivalent on a three-stream basis.

In October 2018, the Company completed drilling operations on the Hawkeye #24H and Hawkeye #25H to total measured depths of 20,050 feet and 17,919 feet, respectively. These wells are projected to average approximately 10,200' of perforated interval with an average proppant concentration of 1,500 pounds per foot. Fracture stimulation is set to begin in November and flowback operations are forecast to begin in mid-December. Lonestar owns a 65% WI and 50% NRI in these wells.

Karnes County - During the third quarter of 2018, Lonestar drilled and completed 3.0 gross / 2.4 net wells in Karnes County. The Georg #24H, #25H & #26H were drilled to an average total measured depth of 15,480 feet and began flowback operations in August 2018. These wells were fracture-stimulated in engineered completions with an average proppant concentration of 1,980 pounds per foot over 20 stages per well and utilized diverters. The Georg #24H was completed with a perforated interval of 5,910 feet and produced at a Max 30-day production rate of 815 Boe/d, consisting of 708 barrels of oil per day, 57 barrels of natural gas liquids per day, and 300 Mcf/d of natural gas on a 26/64" choke. The Georg #25H was completed with a perforated interval of 6,115 feet and produced at a Max 30-day production rate of 837 Boe/d, consisting of 734 barrels of oil per day, 55 barrels of natural gas liquids per day, and 288 Mcf/d of natural gas on a 26/64" choke. The Georg #26H was completed with a perforated interval of 5,979 feet and produced at a Max 30-day production rate of 949 Boe/d, consisting of 825 barrels of oil per day, 66 barrels of natural gas liquids per day, and 348 Mcf/d of natural gas on a 26/64" choke. Lonestar owns an 80% WI and 61% NRI in these wells. Lonestar's first Karnes County wells (the Georg EF #18H, #19H, and #20H), which were completed in May have now produced for four months. On average, these wells have produced a cumulative 78,000 barrels of oil and 64,000 Mcf of natural gas, or 92,900 barrels of oil equivalent on a three-stream basis.

Gonzales County - Lonestar drilled the Culpepper #3-2H, Culpepper #3-3H, and Culpepper #4-4H to an average total measured depth of 15,328 feet and began flowback operations in August 2018. These wells were fracture-stimulated in engineered completions with an average proppant concentration of 2,050 pounds per foot over 19 stages per well and utilized diverters. The Culpepper #3-2H was completed with a perforated interval of 5,337 feet and produced at a Max 30-day production rate of 689 Boe/d, consisting of 607 barrels of oil per day, 44 barrels of natural gas liquids per day, and 230 Mcf/d of natural gas on a 28/64" choke. The Culpepper #3-3H was completed with a perforated interval of 5,245 feet and produced at a Max 30-day production rate of 577 Boe/d, consisting of 508 barrels of oil per day, 37 barrels of natural gas liquids per day, and 193 Mcf/d of natural gas on a 28/64" choke. The Culpepper #3-4H was completed with a perforated interval of 5,383 feet and produced at a Max 30-day production rate of 640 Boe/d, consisting of 560 barrels of oil per day, 43 barrels of natural gas liquids per day, and 226 Mcf/d of natural gas on a 28/64" choke. Lonestar owns an 80% WI and 60% NRI in these wells.

Pirate - In Wilson County, no new wells were completed during the three months ended September 30, 2018. The Pirate leasehold is held by production, and Lonestar does not currently plan any drilling activity here in 2018.