Lonestar Resources Provides Operational Update-June Production Up 23% Over 1Q21 While 2Q21 Financial Results Expected To Exceed High End Of Guidance

FORT WORTH, Texas--(BUSINESS WIRE)-- Lonestar Resources US Inc. (OTCQX: LONE) (together with its subsidiaries, "Lonestar," "our" or the "Company") today provided an operational update. Lonestar announced that the results of its 2021 program continue to positively influence production and cash flow. Thus far in 2021, Lonestar has placed 7.0 gross / 5.5 net wells onstream. Located in the Hawkeye and Horned Frog areas, these wells have increased estimated production for the month of June 2021 by 23% to approximately 12,750 BOE per day, which consists of approximately 6,400 barrels per day of crude oil, 2,600 barrels per day of natural gas liquids and 22,500 Mcf per day of natural gas.

Lonestar’s Chief Executive Officer, Frank D. Bracken, III, commented, “Our 2021 capital program continues to deliver new extended reach laterals on-time and on-budget. Thus far, our 2021 production results indicate exceptional rates of return. Consequently, Lonestar is currently on-track to deliver production results at the high end of its 2Q21 guidance of 11,500 – 12,000 BOE/day, while we now expect Adjusted EBITDAX to be $23.0 million, exceeding the high end of our 2Q21 guidance of $20 - $22 million. Additionally, we expect discretionary cash flow to be $19 million, eclipsing the high end of our guidance of $16 - $18 million.”

Thus far in 2021, the following wells have been placed onstream:

• Hawkeye- In February 2021, Lonestar began flowback operations on 3.0 gross / 1.5 net wells, the Hawkeye 33H, Hawkeye 34H, and Hawkeye 35H. These wells recorded initial rates over a 30-day period (“Max-30 rates”) of 909 BOE/d, 91% of which was crude oil. Recently, Lonestar introduced artificial lift operations on these wells, and they have responded favorably, logging average rates over the first 90 days of production of 784 BOE/day. The Company holds a 50% working interest (“WI”) / 38% net revenue interest (“NRI”) in these wells.
• Horned Frog West- In March 2021, Lonestar began flowback operations on 2.0 gross / 2.0 net wells on its Horned Frog West property, the Horned Frog West #1H and #2H. Lonestar has a 100% WI / 78% NRI in these wells. These wells, which have average perforated intervals of 7,496 feet, have registered average Max-30-day rates of 629 barrels per day of oil, 197 barrels per day of NGLs, and 2,246 Mcf/d of natural gas, or 1,200 BOE/d on a three-stream basis.
• Horned Frog- On June 14th, Lonestar commenced flowback operations on 2.0 gross / 2.0 net wells on its Horned Frog South property, the Horned Frog Alderman #1H and #2H. Lonestar has a 100% WI / 77.96% NRI in these wells. These wells were drilled to an average total depth of 22,025 feet and had perforated intervals averaging 12,012 feet with proppant concentrations averaging 2,029 pounds per foot. Over the last 22 days, these two wells are currently producing an average of 816 barrels of oil per day, 606 barrels of NGLs per day and 5,716 Mcf of natural gas per day, equating to 2,302 BOE per day on a three-stream basis, which is materially higher than the third-party forecast, particularly with respect to oil volumes, which are almost twice the forecasted rates.

Lonestar is also conducting drilling operations on the following pad:

• Hawkeye- Lonestar is currently drilling a 3-well pad for the Hawkeye #9H, #10H and #11H wells, which are expected to have perforated intervals exceeding 11,000 feet.

About Lonestar

Lonestar is an independent oil and natural gas company based in Fort Worth, Texas, focused on the development, production and acquisition of unconventional oil, natural gas liquids and natural gas properties in the Eagle Ford Shale in Texas.

Cautionary Note Regarding Forward Looking Statements

Disclosures in this press release contain certain forward-looking statements within the meaning of the federal securities laws. Statements that do not relate strictly to historical or current facts are forward-looking. These statements contain words such as “possible,” “if,” “will,” “expect” and “assuming” and involve risks and uncertainties including, among others that our business plans may change as circumstances warrant and securities of the Company may not ultimately be offered to the public because of general market conditions or other factors. Accordingly, readers should not place undue reliance on forward-looking statements as a prediction of actual results. For more information concerning factors that could cause actual results to differ materially from those conveyed in the forward-looking statements, please refer to the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission (the “SEC”) on March 31, 2021, and any subsequently filed quarterly reports on Form 10-Q. Any forward-looking statements in this press release are made as of the date of this press release and the Company undertakes no obligation to update or revise such forward-looking statements to reflect events or circumstances that occur, or of which the Company becomes aware, after the date hereof, unless required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210715005254/en/

Chase Booth, 817-921-1889

Source: Lonestar Resources

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