Jun. 6, 2011 (TheNewswire.ca) --
Calgary, Alberta (June 6, 2011) - Red Rock Energy Inc. (TSX:RE) (TSXV:RRK) (OOTC:RDRIF) (TSX-V - RRK)("Red Rock" or the "Company") announced today that it has closed the transaction under which it acquired up to 4200 acres of prospective oil and gas rights in North East British Columbia. The agreement was with a regional, mid-tier oil and gas company and the properties which are the subject of the acquisition include two existing well bores and related well and processing equipment. As soon as local conditions permit, Red Rock intends to re-enter and recomplete each of these well bores with the intent of evaluating the potential for by-passed hydrocarbon production. One of the acquired well bores has been designated as the discovery well for a Bluesky oil pool. Concurrent with this land acquisition, Red Rock has also been granted a seismic option on the contiguous four section block which will allow it to earn a 100% working interest in that block, subject to a non-convertible overriding royalty to the existing land owners.
In addition to the closing of the BC transaction, Red Rock also announced that it has effected the full staffing of its Red Rock Projects subsidiary by retaining the services of the following individuals:
Mr. Scott McDougall, P.Geol., has been retained as Vice President of Petroleum Geology (subject to exchange acceptance). Mr. McDougall graduated from the University of Calgary in 1983 with a B.Sc. degree in Geology and was awarded the APEGGA gold medal. His career began at Home Oil as a Petroleum Geologist in the Western Canadian sedimentary basin. Most recently he was employed at Paramount Resources (TSX:POU) where, over a 15 year period, various positions were held including Senior Geologist, Exploration Manager and Corporate Operating Officer. He has over 25 years of experience in petroleum exploration and development in all western provinces and the Northwest Territories and is a current member of the CSPG and APEGGA.
Earl Scott, P.Eng., will serve as the Vice President of Operations (subject to exchange acceptance). Mr. Scott graduated from the University of Calgary in 1985 with a B.Sc. Degree in Engineering. He has over 25 years of oil & gas operations experience and has his own engineering consulting firm where his clients have included ExxonMobil (NYSE:XOM) , Imperial Oil (TSX:IMO) (AMEX:IMO) and Kerr McGee. From 2005-2010 Mr. Scott was with BG Canada on the executive team as Vice President of Engineering & Operations. Prior roles include Global Drilling Manager (Houston) and Ecuador Operations Manager (Quito) for AEC International. Mr. Scott began his career with Dome Petroleum in 1982 and eventually moved on to Imperial Oil where he spent 10 years in various engineering roles in Canada and Malaysia. He has held board positions with AECI USA in Houston and an Ecuador based NGO, Nanpaz.
Calvin Folden has been retained as Vice President of Engineering (subject to exchange acceptance). Mr. Folden received a B.Sc. Degree in Geological Engineering from the University of Saskatchewan in 1973. His 34 year career in the oil industry covered a variety of projects giving him diverse experience that includes sweet, sour, shallow, deep, new, and old, oil and gas. He started his career at Chevron and held a variety of engineering positions, primarily in production and reservoir engineering. This was followed by increasing responsibility in supervision and management of engineering groups and field operations. At Paramount Resources, a growing junior oil and gas company, from 1995 to 2008, he handled a variety of engineering roles including acquisitions and divestitures along with increasing responsibility for the supervision of field operations. His last position that he retired from was managing an operating area with budgets approaching $100 million. He is currently a member of SPE.
"We at Red Rock are thrilled to have been able to secure the services of what amounts to being a first class team of exploration and production professionals" stated Red Rock's President, Sandy Loutitt. "We also believe that we have been able to secure a project which will allow our new oil and gas team to demonstrate their value added potential through evaluating and producing petroleum from a potentially significant new source in British Columbia. At this time the intention of Red Rock management is to move forward as quickly as possible with the implementation of this exploitation program, and to expand our base in the north eastern British Columbia."
Finally, the Corporation also announced that, subject to TSX Venture Exchange acceptance, it has granted options to its investor relations and financial communications services provider, Mr. Rick Couronne, to acquire an aggregate of 150,000 common shares of Red Rock. These options will: (i) vest as to one twelfth per month during the first 12 months following the date of grant; (ii) be exercisable at a price of $0.204 per share, being the closing price on June 3, 2011, until June 6, 2016; and (iii) expire 30 days after the expiration of the governing consulting agreement.
For further information, contact Sandy Loutitt, President, or Rick Couronne, Investor Relations; Ph 403-685-1047, or visit: www.redrockenergy.ca.
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READER ADVISORY
Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.
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