Red Rock Resources - Shoats Creek Operations Update
("Red Rock" or the "Company")
Shoats Creek Operations Update
· Lutcher Moore #20 ("LM20") now producing 100 barrels of oil per day ("BOPD") from the Frio formation - 20 BOPD net to Red Rock
· Recompletion of the Lutcher Moore #19 Well ("LM19") as a Frio producer now finished with well testing in progress
· Work on preparing the Lutcher More 21 ("LM21") for spud continues with a firm date to be announced in due course
· Lutcher More #15 ("LM15") passed a mechanical integrity test and can now be used for all on-site disposal of
· Additional development opportunities have been identified in the field and a plan to begin and expand natural gas production and sales is in progress
Red Rock Chairman
While development over the year has ended up being focussed more on cheaper recompletions than on new wells we expect production levels to continue to increase and meet out ultimate targets for the year.
Lutcher Moore #19
As previously announced on
In excess of 400 BBls of oil were recovered during initial operations, swabbing and testing, with a three-day average of approximately 40 barrels of oil per day under natural pressure. The oil cut in the LM19 is over 50% better than that achieved by the Lutcher More 20 well ("LM20") and the recovered volumes, thickness of payzone, and high oil cut gives the partners enhanced confidence in the quality of the Frio sands in this section of the field. The LM19 will be added to full production in due course.
Red Rock will have a 20% WI and 14.4% NRI in the well, and the Company's contribution to the well will be approximately
Lutcher Moore #21
Preparation for the LM 21 spud continues, where Red Rock will have a 20% working interest and 14.4% net revenue interest.
Additional Well Tests
Several existing well bores have been identified as having the ability to produce oil and gas and tested as follows:
- Lutcher Moore #14: 24-hour test, 40 barrels of oil per day and natural gas at rates of up to 2.5 MMcf/d
Plans to initiate production from these wells are underway by the operator and Red Rock is in discussions to participate in these additional field developments.
Natural Gas Sales
The project management team is undertaking discussions to tie-in production of natural gas utilizing one of two existing tie-in points located at Shoats Creek Field. Once gas sales can be undertaken, additional exploitation opportunities of well bores with re-entry potential in gassier pay zones holds substantial potential to generate additional low risk, low cost revenue at Shoats Creek Field.
The technical information that is contained in this announcement has been reviewed by Mr.
For Further Information Contact:
Scott Kaintz 0207 747 9990 Director
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd
This information is provided by RNS
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