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Bonanza Creek Tightens Spacing at Legacy Niobrara Asset; Talks French Lake Results

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Bonanza Creek Energy reported its Q3 2018 results.

Production Highlights:

- Third quarter sales volumes averaged 17.7 MBoe/d - at midpoint of guidance (this is relatively flat from 2Q18 and up +12% YOY)

- During Q3, the Company spud 19 gross (13.2 net) operated wells, five of which were extended reach lateral (XRL) wells, and completed five gross (4.1 net) operated wells, five of which were XRL wells.

French Lake - XRL Wells Above Expectations; New JDA

The Company continues to be encouraged by the results at French Lake. Six of the eight XRL wells are tracking above the Company's expectations and, we believe, best reflect the reservoir quality in the area.

Additionally, Bonanza Creek recently executed a joint development agreement with a major operator in the basin. This agreement moves the Company significantly closer to realizing the value of the French Lake asset.

Legacy West - Higher Intensity Completions Pay Off; Tighter Spacing

The Company's five-well K-22 pad on its Legacy West acreage, which has wells completed in the Niobrara B, C, and Codell, is currently tracking above the Company's type curve for this area with average cumulative production of 13.1 MBoe (68% oil) per 1,000 feet of lateral after 136 days of production.

This production performance further validates the Company's high-intensity stimulation designs and the value of its Legacy Western acreage. Additionally, this five-well pad was drilled on approximately 40-acre spacing (16 wells/section) compared to approximately 60-acre spacing (11 wells/section) on pads completed in this area last year and earlier this year. The Company will continue to optimize spacing, stacking and high-intensity stimulation designs to maximize resource recoveries and value.