CALGARY, Nov. 12 /CNW/ - Result Energy Inc ('Result'; TSX-V: RTE) is pleased to provide the following exploration activity update. The Company will also be presenting a corporate review at the 2007 SEPAC Investor Conference in Toronto on November 14, 2007.
Central Alberta Area
- In the Windfall area, Result recently completed the drilling and
casing of its first well (33.33% net) targeting the Devonian Nisku
liquids-rich gas play. This well will be completed and tied in as
soon as possible, with an on-stream target date of late December.
A second well (28% net) on this project is expected to commence
drilling within the next two weeks.
- At Modeste, the Company is currently conducting well stimulation and
testing operations on one of its recently-drilled Viking gas
prospects (60% net). Initial flow rates are encouraging; and well
evaluation is ongoing.
- At Kakwa, Result has participated in the drilling of a second deep
basin style gas prospect (25% net). Six potentially productive zones
have been identified in this well. Completion and stimulation
operations commenced in early November, and at this time, the Company
is cautiously optimistic and expects to comment on aggregate flow
rates by year-end.
Peace River Arch Area
- At East Eureka, Result has acquired a 100% working interest on a new
Triassic oil play. An exploratory test of this prospect is scheduled
for the first quarter of 2008.
- At Clear Hills North, Result and partners plan to acquire a regional
airborne remote sensing survey for Gilwood oil potential prior to
year-end 2007. Under the terms of the proposed agreement, Result's
partner will bear the full cost of the survey to earn a working
interest in certain Company lands and the option to participate in
the drilling of Devonian targets within the area of interest.
Saskatchewan Properties
- The Company has recently completed the drilling of a nine-well infill
program (50% net) at its North Dodsland Viking project. These wells
are expected to be completed, stimulated and tied-in before
December 1st. Recent reductions in the cost of oilfield services have
improved the economics on this shallow gas play.
Northeastern British Columbia
- Over the past twelve months, the Company has been quietly building a
significant land position on a new deep Devonian gas play in
northeastern British Columbia. This play is targeting high-
deliverability gas within the Keg River platform of the Horn River
basin. Result plans to shoot a major 2-D seismic program over these
lands in the first quarter, with a view to drilling the first
prospect in late 2008. To date, the Company has acquired more than
23,000 gross acres on this play at a 100% working interest. These
lands are also highly prospective for the emerging Muskwa and Evie
shale gas play, which is attracting major industry interest. Recent
Crown land sales for shale gas mineral rights near Result interest
acreage have, in aggregate, totaled more than C$ 325 million, with
certain individual bids exceeding $ 2,000 per hectare.
In commenting on the Company's prospect inventory, Mr. Bill Matheson,
President, said "We are very pleased with the geographic and geologic
diversity of our exploration portfolio. This program provides us with the
flexibility to allocate our capital resources to the most attractive projects
and jurisdictions".
Alberta Royalty Review
- Alberta recently announced proposed changes to the provincial Crown
royalty rates which are scheduled to become effective in 2009.
Assessing the overall potential impact on the Company's operations is
subject to many uncertainties, including a forecast of future well
volume levels, the relative mix of Alberta and non-Alberta
production, and other factors. Many of Result's Alberta natural gas
projects are expected to experience slightly higher royalty rates,
yet still yield acceptable economics.
- Result intends to mitigate the effect of the proposed changes by
directing a greater portion of its post 2007 capital projects towards
its existing Saskatchewan and expanding British Columbia properties.
In addition, certain Alberta projects may continue to be attractive
as Crown land sales, farm-in terms and third party service costs
begin to reflect the revised economic realities.
Natural Gas Hedging Program
- Result has recently entered into two new natural gas price hedges,
both for 1,500 GJ/d. The first hedge is a costless collar with a
$6.50 / GJ floor price and an $8.15 / GJ ceiling for the
November 2007 to March 2008 period. The Company has also sold forward
1,500 GJ/d at $6.25 / GJ for the November 2007 to October 2008
period.
Result Energy Inc. 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".
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.
%SEDAR: 00012334E