CALGARY, Oct. 31 /CNW/ - Result Energy is pleased to present the
following operational update and fourth quarter activity forecast. Also,
please be reminded that Result will present a corporate review at the 2005
SEPAC Investment Symposium at the Westin Hotel in Calgary at 11:00 AM on
October 31, 2005.
Central Alberta area
- In the Winfield/Pembina area, Result recently completed the drilling
and casing of its first well targeting the Lower Mannville gas play.
This well will be completed for multi-zone gas potential, with
testing operations expected to commence in mid-November.
- As a follow-up to the Company's recent Viking high-deliverability gas
success at Pembina Result has completed a 5 square mile 3D seismic
program. Based on this new seismic data, Result has elected to drill
a second Viking test on this play, which is expected to spud prior to
year end. Pipeline construction for the tie-in of these volumes is
proceeding on schedule, and Result currently expects to be producing
approximately 2,400 mcfd (1,200 mcfd net, BPO) from this discovery by
late November.
- Also during the fourth quarter, Result (50% W.I.) expects to spud a
high-impact deep Devonian test in the Winfield area.
Peace River Arch area
- At Worsley, in the Peace River Arch region, Result and partners have
recently completed the testing of a 3rd exploration well (0.4 net)
targeting the Company's high-deliverability Devonian gas play. The
latest well flowed at a stabilized rate of 1,550 mcfd, with minor
condensate and water, at less than 6% effective reservoir drawdown.
Pipeline construction to tie-in this well, plus two other wells
drilled earlier this year, is progressing on schedule. Result
anticipates production volumes from this project to reach at least
7,000 mcfd gross (2,520 mcfd net) by year end.
- At the Clear Hills property, negotiations are underway to secure
alternate pipeline and facilities to permit production from the
Company's four working interest wells within the Charlie Lake 'A'
pool (approximately 1,500 mcfd net). Subject to regulatory approvals
and favorable weather, the Company anticipates the alternative
facilities to be operational by the end of the first quarter 2006.
Saskatchewan properties
- At Dodsland East, in western Saskatchewan, Result has commenced
drilling two (1.0 net) additional development wells on the Viking
shallow gas project. Drilling, completion and tie-in operations for
these two wells, plus two wells drilled earlier this year, are
expected to be completed by the end of November. This project is
expected to add 350 mcfd net to the Company's production base.
- As at September 30, 2005, Result and its partner have fulfilled a gas
pre-pay obligation on the Dodsland North natural gas property.
Settlement of this obligation, which was similar to an over-riding
royalty on production, will enhance Result's current cash flow by at
least $75,000 per month. In addition, Result expects to commence
production from another four (2.0 net) new gas wells on this property
by the end of November. These wells should help offset natural
reservoir decline on this project.
Production Synopsis
As at October 28, 2005, Result's total corporate production volumes were
approximately 475 boed (98% natural gas) as tabulated from raw field receipts.
An estimated 950 boed (100% natural gas) has been tested behind pipe and/or
has previously been on production. Four pipeline and facilities projects are
scheduled to be completed between late November and the end of the first
quarter 2006. Consequently, the Company remains on-track to meet or exceed its
2005 exit volume forecast of 1,000 boed and its first quarter exit volume
projection of 1,400 boed.
In commenting on the Company's 2005 program, Bill Matheson, President and
CEO, said "We are very excited and very happy with the exploration and
development success realized this year. We have validated several of our new
exploration concepts which will provide attractive drilling inventory through
2006 and into 2007."
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
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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