Business
Result Energy Inc. provides Operations Update and 2006 Capex Plans
Result Energy Inc. provides Operations Update and 2006 Capex Plans.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCALGARY, Jan. 12 /CNW/ - Result Energy is pleased to provide an\noperations update and estimated capital budget for 2006.\nFor the second half of 2005 Result's exploration and development\nactivities were at an all time high and delivered record growth, as summarized\nbelow:\n\nPeace River Arch core area\n\n - At the Worsley property, Result (36.4% WI) and its partners\n constructed an extensive gas gathering system in the 4th quarter,\n which brought three natural gas wells on stream. Although flush\n production from these wells peaked at over 8,000 mcfd (2,900 mcfd\n net) stabilized flow rates may not become evident for several\n months. As such, these wells are being evaluated to better\n understand the reservoir size and deliverability.\n\n - Also at Worsley, Result (50% WI) and its partner have secured 2\n rigs to drill 2 identified targets. The first rig moved to\n location January 9 and will be followed by the second\n approximately two weeks later (January 23). Result is confident\n that the two wells, if successful, will substantially contribute\n to gas production in the area and would expect to have them both\n on-stream before April 1, 2006.\n\n - In late 2005, Result expanded exploration activities to Eureka in\n the northeastern part of the Peace River Arch and drilled 2\n (1.0 net) exploration wells based on 3D seismic. Completion\n operations are underway. If successful, these wells will be tied\n into the newly constructed Worsley gathering system.\n\n - In the Clearhills property, Result and several other area\n producers have reached an agreement with a third party mid stream\n operator to tie-in 1,500 mcfd (250 boed net of shut-in gas). These\n facilities are expected to be on stream by early Q2 2006. The\n Company also intends to drill 4 (1.8 net) additional wells in this\n area during Q1 2006.\n\nCentral Alberta core area\n\n - At the Winfield/Pembina area, in West Central Alberta, Result\n (50% BPO) recently drilled and cased a second Viking gas well\n based on 3D seismic. This well is a follow-up to a successful\n Viking well drilled earlier in 2005. Subject to equipment\n availability, Result expects to commence completion and tie-in\n operations for the second well by mid January. Result has\n substantially completed the tie-in for the first Viking well;\n however a third party processor has e...