Matador Resources Company (MTDR), an independent energy company currently focused on the oil and liquids rich portion of the Eagle Ford shale play in South Texas, reported operating results for the three and six months ended June 30, 2012.

Eagle Ford Shale

In the second quarter of 2012 specifically, 6 gross/5.9 net operated and 1 gross/0.2 net non-operated Eagle Ford shale wells were completed and placed on production. Four of these operated wells were on the Danysh/Pawelek lease in Karnes County, one on the Northcut lease in LaSalle County and one on the Glasscock Ranch lease in Zavala County. Four of those wells did not contribute fully to the second quarter production volumes.

Matador turned its attention to drilling some of its properties in both the eastern and western parts of the play during the second quarter of 2012, including its first test wells in Zavala County. Matador drilled three of the Danysh/Pawelek wells in Karnes County back-to-back, but also delayed the completion of the first two wells until all three could be completed back-to-back. This enabled the Company to test different stimulation treatments and flow back operations on three similar Eagle Ford wells in essentially the same location. Early results from these tests and others in LaSalle County indicate improved well performance as a result of recent fracture treatment modifications. Further, Matador’s operations group has begun flowing back wells on smaller chokes after stimulation, which appears to keep the wells flowing longer before experiencing liquid loading problems and may improve their long-term performance. Drilling and stimulating wells back-to-back reduces costs and flowing wells back on smaller chokes may lead to improved well performance, but such operations also lead to restricted production volumes in the short-term. As a result, oil production, although up 43% sequentially in the second quarter of 2012, has not grown quite as quickly as anticipated.

Results from the Company’s first Eagle Ford shale test in Zavala County, Texas, the Glasscock Ranch #1H well, have been disappointing thus far, although the well is producing and the installation of artificial lift has helped stabilize the well’s oil production rate. Two additional wells have been drilled on the Zavala acreage, one in the lower Austin Chalk/upper Eagle Ford (“Chalkleford”) and a second infill location in the upper Austin Chalk. Both of these wells have just been placed on production, and there is not sufficient production history available at this time to provide a clear assessment of the long-term performance of these wells or how they may respond to artificial lift.

In addition, the Company has just completed and placed on production two wells on its Love lease in DeWitt County,Texas. To enhance well productivity and to save drilling and completion costs, these wells were drilled back-to-back and stimulated together using the “zipper-frac” technique. Early results from these wells suggest that they may be the best two Eagle Ford wells the Company has drilled to date.

Haynesville Shale

Matador has no plans to drill any operated Haynesville shale wells in 2012, but is participating in several non-operated Haynesville wells where it has small working interests throughout 2012. As a result of low natural gas prices, several non-operated Haynesville shale wells were shut in for brief periods or produced less natural gas than anticipated during the first six months of 2012 as the operators voluntarily curtailed a portion of the natural gas production from these wells.

Meade Peak Shale

Matador and its partner are currently finalizing commercial arrangements under which a horizontal test of the Meade Peak Shale would be drilled later this year. This test is anticipated to be a horizontal lateral drilled out of the Crawford Federal #1 vertical wellbore that was drilled and cored through the Meade Peak shale and then suspended in December 2011 for further evaluation. Subject to final terms of the agreement, Matador and its partner also intend to renew leases that may be available for renewal and may acquire additional leasehold within their area of mutual interest.

Acreage Acquisitions

On August 10, 2012, Matador added to its existing acreage position in the Delaware Basin with the acquisition of approximately 4,900 gross and 2,900 net acres in the heart of the Wolfbone play in Loving County, Texas. The Company expects to begin testing this acreage in early 2013.

During the second quarter of 2012, Matador also replaced its 2012 Eagle Ford shale drilling inventory with acquisitions of approximately 2,800 gross and net acres, including approximately 1,500 net acres in LaSalle County, 400 net acres in Gonzales County and 900 net acres in Wilson County, Texas. This acreage is prospective for the Eagle Ford and other targets and is located near the Company’s existing leasehold in South Texas.