Perth - Stonehorse Energy Limited (ASX: SHE) (Stonehorse or the Company) is pleased to announce that it has finalised the step-in to a minority nonoperated working interest1 in the Continental Resources, Inc. (NYSE: CLR) operated Randolph 1- 34-27XHM well (Randolph Well) located in the STACK Play in the Anadarko Basin, Oklahoma.
Highlights
The Company has exercised its right to step-in to a minority 0.21% Working Interest in the Randolph. Well.
This investment was funded out of the company's operational cashflows.
The Randolph Well has generated (on a 100% Working Interest basis) a total of 67,000 barrels of oil and 4,777 MMcf (860,000 barrels of oil equivalent) in its first 16 months of production.
Commenting on the investments, Stonehorse's Executive Director David Deloub said; The investment in this well is consistent with the Company's long-term strategy of building a portfolio of cash generating oil and gas assets with Working Interests reflecting risk appetite and capital availability. Pleasingly, this is Stonehorse's first investment funded directly from the Company's operating cashflows'.
Background
The overall objective of the Company is to implement its strategy of building a portfolio of high quality well bore assets with Working Interest percentages reflecting risk appetite and capital availability underpinned by the Step-in Agreement the Company has with Brookside Energy Limited.
The Step-in Agreement provides the Company with access to a pipeline of well bore opportunities in the Anadarko Basin, including the potential to participate in non-operated wells in the core of the STACK Play and higher-impact wells in the emerging and highly sought after Sycamore-Woodford trend in the SCOOP Play. The Company's Prospectus, included the opportunity to step-in to a number of well bore investments (Proposed Assets), including the Randolph Well located in the STACK Play.
The Randolph 1-34-27XHM
Under the terms of the Step-in arrangement, Stonehorse had the option to step-into 0.21% working interest in this well located in the southern STACK Play in the Anadarko Basin. Initial production (IP24) of 1,319 Boe per day (65% oil) has been reported for this well with 67,000 barrels and 4,774 MMcf (860,000 barrels of oil equivalent) produced in the first 16 months of cumulative production. These initial results are very encouraging and Stonehorse looks forward to providing additional data and sustained production results over the coming 12 months.
Contact:
David Deloub
Tel: (+61 8) 6489 1600
Forward-Looking Statements and Other Disclaimers
This announcement may include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of Stonehorse Energy Limited ('Stonehorse Energy' or 'the Company'). These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward-looking statements. Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and the ASX Listing Rules, Stonehorse Energy does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward looking statement is based. This announcement does not constitute investment advice. Shareholders should not rely on this announcement. This announcement does not take into account any person's particular investment objectives, financial resources or other relevant circumstances and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. The information set out in this announcement does not purport to be all-inclusive or to contain all the information, which its recipients may require in order to make an informed assessment of Stonehorse Energy. You should conduct your own investigations and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this announcement. To the fullest extent permitted by law, the Company does not make any representation or warranty, express or implied, as to the accuracy or completeness of any information, statements, opinions, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from this announcement arising out of negligence or otherwise is accepted.
STONEHORSE ENERGY LIMITED 
