VAALCO Energy (EGY) reported a successful well drilled into the Granite Wash on a lease in Hemphill County, Texas. The company has a 100% working interest in single 640 acre lease.
The Hefley 90-01H well had an initial production rate of 11 million cubic feet of natural gas and 175 barrels of condensate per day.
VAALCO Energy reported that the cost to drill and complete the Hefley 90-01H well was $10 million and the company has between 2 and 3 additional Granite Wash locations on the leasehold. The company has budgeted $20 million in capital for the Granite Wash in 2011.