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Result Energy Announces Closing of Horn River Asset Sale and 2010 Capital Spending Focus on Conventional Tight Oil Projects
Result Energy Announces Closing of Horn River Asset Sale and 2010 Capital Spending Focus on Conve...
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nOct. 19, 2009 (Canada NewsWire Group) -- CALGARY, Oct. 19 /CNW/ -- Result Energy Inc. ('Result'; TSX-V: RTE) reports that it has closed the previously announced disposition of its Horn River shale gas assets in northeastern British Columbia to a major energy trust for $11 million cash, plus certain non-cash consideration. The cash proceeds from the sale are being used to extinguish all of the Company's bank operating loan and current payables.Corporate FocusGiven the recent and projected weakness in natural gas markets, the Company will focus its 2010 capital program on low risk conventional tight oil projects in Alberta and Saskatchewan. Result plans to participate in projects which offer year-round access and drilling depths less than 2,000 meters (vertical). The Company will also focus on geologic formations which have large oil-in-place volumes plus low primary recovery factors and which will benefit from the recent advances in multi-frac horizontal well technology. Result is currently active in four project areas which meet these criteria:Garrington - PembinaAs part of the non-cash consideration of the Horn River transaction, Result has entered into a 5.5-section farmin agreement in the Garrington area of west central Alberta. These lands are considered highly prospective for Cardium tight oil. Upon completion of the earning terms, Result will earn 50 percent working interest before payout (30 percent after payout) across the subject lands. Assuming success, the Company plans to drill additional appraisal and development wells in Q4/2010 and into Q1/2011.The Garrington farmin is situated just south of the Company's existing properties at Pembina-Modeste, where Result holds interests in eleven sections. Over the past several years, the Company has developed these lands for Viking gas potential, and recognizes that they are also very prospective in the Cardium zone. Result's Modeste acreage, in particular, is situated approximately three miles west of recent Cardium activity. The Company believes that its acreage lies within the same geologic fairway. Result plans to drill at least two (1 net) Cardium horizontal wells and one (0.4 net) Viking horizontal target at Pembina-Modeste during 2010.Greater KakwaResult is involved in a Cardium tight oil project at Kakwa, Alberta. The Company holds interests in 6 sections, whic...