Italy’s Eni and its joint venture partner Quicksilver Resources announced Wednesday that it struck oil at the Stallings 1H well in West Texas.
The well is currently producing on a restricted choke at a rate of 750 barrels of oil equivalent per day with oil accounting for 90 percent of the output.
The well’s production rate is on the high side of those recorded in the south sector of the Delaware Basin.
The well was completed in a 2,900 feet horizontal section at a vertical depth of 7,400 feet in the Delaware Basin.
Production at Stallings 1H is expected to begin in September.
Eni is partnered with Fort Worth-based Quicksilver to evaluate, explore and develop unconventional oil reservoirs in the southern portion of the basin.
The Delaware Basin is in Pecos County, West Texas about 434 miles (700 kilometers) north west of Houston.
The joint venture is currently drilling its second exploration well, Mitchell 1H, 4.5 miles north of Stallings 1H to target the same reservoir.
The exploration agreement between Eni and Quicksilver covers an area of approximately 52,500 acres in the southern part of the Delaware Basin.
Quicksilver is the operator of the lease. Both companies hold 50 percent working interests.
According to Platts, the Delaware Basin currently produces about 539,000 barrels per day of oil with production projected to rise to 769,000 barrels per day by the end of 2019.
Eni holds interests in 530 onshore shale gas and shale oil leases in Texas.
The company currently produces over 100,000 barrels of oil equivalent per day in the United States and operates 75 percent of that production.