Result Energy Inc. Provides Operations Update

About this update from Route 109 Resources Inc.

[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 28 /CNW/ - Result Energy Inc. ('Result'; TSX-V: RTE)\nannounces that, subject to TSX Venture Exchange approval, it intends to sell\nsubstantially all of its producing assets in Saskatchewan. The properties to\nbe sold include the Company's 50% working interest in a shallow Viking natural\ngas field (48 wells) and related compression facilities at Dodsland, plus\nproduction (1 oil and 6 gas wells) and wellsite facilities at nearby East\nDodsland. Current production from these combined properties totals\napproximately 1,800 mcfd net (300 boed net). The Dodsland properties represent\nan excellent, mature asset base, consisting of concentrated, predictable\nreserves characterized by large amounts of remaining gas in place, moderate\nproduction volumes and a long reserve life index. Property upside consists\nprimarily of the drilling potential associated with reduced well spacing to\nimprove field recoveries.\n\n\nProceeds from the proposed disposition will be applied to the Company's\ndebt including payout of convertible debentures. This reduction in debt will\nalso provide Result with the flexibility to increase its Capex budget for 2008\nto approximately $8 million. The increase in capital spending will be directed\nto new exploration projects at Royce and Eureka in the Peace River Arch, and\nto the Company's emerging combined shale gas and platform gas play in\nnortheastern British Columbia.\n\n\nThe disposition will remove a mature, development property from Result's\nportfolio and allow the Company to focus on the substantial upside associated\nwith its Peace River Arch and British Columbia properties.\n\n\nProduction from Result's Saskatchewan properties will effectively be\nreplaced by new wells which are coming on stream in early Q1-08 at Kakwa and\nWindfall.\n\n\nTwo new gross natural gas wells (0.22 net), which were drilled during\n2007 are currently being tied-in at Kakwa, Alberta. Production is expected to\ncommence by the end of January 2008 These wells were completion tested at a\ncombined rate of 8,400 mcfd gross (1,800 mcfd net). Result also holds\ninterests in 4 additional undeveloped sections in the Kakwa project, all of\nwhich are prospective for future development drilling.\n\n\nIn mid January, drilling commenced on an exciting 2,900 metre Slave Point\ngas prospect at Mearon, Alberta. Mearon...

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