CALGARY, April 5 /CNW/ - Result Energy Inc. "Result", (TSX-'RTE') provides the following corporate update:
During the first quarter of 2007, Result participated in 6 gross wells (3.2 net), resulting in 4 gross (1.7 net) potential gas producers, and 2 gross (1.5 net) dry and abandoned wells. The Company also participated in the setting of surface casing on 1 gross (0.25 net) impact exploratory well in a winter seasonal area, and is expected to complete drilling and testing operations in the first quarter of 2008.
At Clearhills, Alberta, Result production tested three new natural gas wells on its Triassic exploitation project. These wells flowed at gross combined rates of 2.0 MMcfd. Two of these wells are expected to come on-stream in early April, and should add approximately 115 boed net to the Company. The third well will be tied in at a future date.
At Kakwa, Alberta, Result participated in a 3,300 meter 'deep basin' gas well. Six prospective pay intervals have now been completed and fracture stimulated. Further flow testing and tie-in operations are scheduled for the fourth quarter of 2007. Result holds a 20% working interest in this project.
At Eureka, Alberta, Result and partners acquired mineral interests in an additional 4 gross (3.0 net) sections of undeveloped land on the Company's Devonian and Triassic play fairway. Result also purchased four square miles of 3-D trade seismic to assist in the evaluation of these lands. The Company expects that these initiatives will lead to several drilling locations in the third and fourth quarters of 2007.
At, Pembina-Modeste, Alberta, Result has entered into a 4-section farm-in deal with a major Royalty Trust to continue its exploration program on the Viking channel gas project. Two firm locations (one each on farm-in lands and proprietary lands) have been selected for drilling in the second quarter 2007. The Company's after-earned interest in these prospects will average 50%.
At Mearon, Alberta, Result is participating in an impact exploratory well to test for Slave Point and Gilwood gas potential. The location is situated approximately 10 kilometers southeast of the prolific Ladyfern Slave Point field. Well drilling operations commenced in the first quarter of 2007, but due to winter-only access in this area, the final drilling and testing operations will be completed in the first quarter of 2008. By participating in this well, Result will earn six sections of mineral rights at a working interest of 25%.
As at February 28, 2007, Result's total corporate production volumes were approximately 1,400 boed (90% weighted to natural gas) as tabulated from raw field receipts. An estimated additional 150 boed (100% weighted to natural gas) remains tested behind pipe and/or has previously been on production. Several pipeline and wellsite equipping projects are scheduled to be completed by early April. Upon completion of these projects, the Company expects its production to reach 1,550 boed.
Mark Smith P.Geoph., previously Vice-President, Business Development, has elected to retire from the Company effective March 31, 2007. Mr. Smith was a co-founder of Result and has been an integral part of the management team since Result commenced western Canada operations in 2001. Mr. Smith will continue to advise Result in a consulting capacity.
Result's Board of Directors announces the following executive appointments, effective March 31, 2007:
James Reimer P.Geol., is appointed Executive Vice-President, Business Development. Mr. Reimer brings more than 28 years of diversified E&P experience and was most recently Vice-President, Exploration and Development for Result.
John Wittnebel P.Geol., is appointed Vice-President, Exploration. Mr. Wittnebel brings 30 years experience and was most recently Chief Geologist for Result.
Marty Scase, B.Comm, is appointed Vice-President, Land. Mr. Scase brings 10 years experience and was most recently Land Manager for Result.
In commenting on these management changes, Mr. Bill Matheson, President, said, "Mark has been a pleasure to work with and we all wish him a very enjoyable retirement. We are also very pleased with the depth of experience and recent track record of success that Messr's Reimer, Wittnebel and Scase have contributed to Result Energy. With their enthusiasm and knowledge, Result is well positioned to deliver on its future growth targets."
2006 Year-end Financial and Reserve Reporting:
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Result advises that it will release its 2006 year-end financial statements, annual report, and N.I. 51-101 reserves disclosure on or before April 19th.
Result is a publicly traded Canadian energy company involved in the exploration and development of oil and gas properties in western Canada. Result trades on the TSX Venture Exchange under the symbol "RTE". Result's annual general meeting is scheduled for May 29, 2007.
The TSX Venture Exchange does not accept responsibility for the adequacy
and accuracy of this release.
Investors are cautioned that this news release contains forward looking information. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
The term barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet per barrel (6mcf/bbl) of natural gas to barrels of oil equivalence is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil.
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