Business
Result Energy to Hold Capital Spending Steady at $14 million in 2007
Result Energy to Hold Capital Spending Steady at $14 million in 2007.
About this update from Route 109 Resources Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Jan. 9 /CNW/ - Result is pleased to announce that its Board of\nDirectors has approved an initial 2007 capital budget of $14 million. Current\nplans include the drilling of 10 wells during the first six months of 2007. An\noverview of the main corporate targets for 2007 include:\n\n\n- Drill 23 wells in 2007 (at an overall average working interest of\n 50%).\n\n- Build production to average 1,650 boed for 2007, and exit the year\n with production of at least 1,800 boed. Result's field estimated\n production rate for the month of December, 2006 was approximately\n 1,300 boed.\n\n- Expand operating cash flow to at least $11 million, or $0.22 per share\n (based on 1,650 boed annual average and a $7.00 average Alberta\n natural gas spot price for 2007).\n\n\nOperations Update\n\n\nCentral Alberta W5M\n\n\n-------------------\n\n\nAt Pembina/Modeste, Result's volumes from two gas wells began flowing in\nJuly when a third party compression facility came on stream. These Viking gas\nwells have an estimated combined production capacity of 3,200 mcfd (266 boed\nnet), but have initially produced at constrained rates ranging from 700 mcfd\nto 3,000 mcfd gross due to down-stream facility limitations. Result expects\nthe capacity constraints at Modeste will be fully resolved in 2007 and upwards\nof 100 boed of net capacity will begin to flow on a daily basis at that time.\n\n\nGoing forward into 2007, Result has developed more Viking gas prospects\nin the Modeste area based on new 3-D seismic and plans to drill at least one\nexploratory well in Q1. The Company has also entered into a 5-section farmin\nwhich should provide additional prospect inventory through 2007.\n\n\nAt Windfall in Central Alberta, Result acquired interests in 4 sections\nof land, with farmin options on additional sections. The Company is pursuing\nliquids-rich Devonian gas targets based on 3-D seismic. At least one\nexploratory well is expected to be drilled in the first 6-months of 2007\n(30% WI).\n\n\nPeace River Arch\n\n\n----------------\n\n\nAt Clearhills, Result is producing 3,400 mcfd gross (265 boed net) from 4\ngas wells. A new gas processing facility came on stream in September and is\nnow handling this production. This new gas plant has provided momentum for\nResult to expand its exploration for Charlie Lake gas pools in the Clearhills\narea a...