Amarc Resources Ltd. press release
Result Energy provides exploration update
TSXV - TSX Venture Exchange · Copper · Gold · Silver · Molybdenum · Canada
CALGARY, Aug. 18 /CNW/ - Result Energy Inc. is pleased to provide the following update on its 2005 exploration and development program:
At Dodsland, Saskatchewan, four gross Viking gas development wells (2.0 net) were drilled in May and brought on production in mid-July. On Result's new East Dodsland project, the Company drilled two Viking wells (1.0 net) and successfully tested both as potential gas producers. Follow-up drilling plans include four wells (2.0 net) at Dodsland and two wells (1.0 net) at East Dodsland prior to year-end.
In the Central Alberta Winfield-Pembina core area, mineral rights have been acquired on three exploration prospects identified within Result's 85 square mile 3-D seismic data set. The first prospect was drilled in early Q3 and has been cased as a potential Viking gas producer. Completion, testing, and additional 3-D seismic acquisition are scheduled for late Q3. Result also expects to drill the two other exploration prospects prior to year-end, subject to regulatory approval and equipment availability. The Company continues to identify other exploration opportunities within the Winfield 3-D program, and is actively pursuing mineral rights on these targets for its 2006 drilling program.
At Clear Hills, Alberta, within the Peace River Arch core area, Result recently cased one new dual-zone Charlie Lake and Bluesky development gas well and has another development well currently drilling. Subject to completion success, the Company will ultimately hold interests in four wells within the Clear Hills Charlie Lake pool. Based on Result's internal estimates, this pool could cover approximately 10 sections and may contain in excess of 15 billion cubic feet of initial gas in place. The Company's current net productive capability from Clear Hills is 900 Mcfpd (150 boed) and these volumes are expected to noticeably increase when the two new wells are brought on stream. At this time, Result's Clear Hills production is shut-in due to third party pipeline and facility constraints. The Company is evaluating other options including the construction of our own facility.
At Worsley, Alberta, also within the Peace River Arch core area, the Company has successfully drilled two wells (0.72 net) targeting high- deliverability Devonian gas prospects. The first well has been completed and tested at stabilized rates exceeding two million cubic feet per day at less than 3% effective reservoir drawdown. Production testing on the second well should be completed by the end of August, and a third well is scheduled for drilling in September. The Worsley project partners have initiated the permitting and construction of a gas pipeline to serve these new discoveries.
To date, Result and partners have acquired approximately 23 square miles of 3-D seismic within the Worsley Devonian project area. The Company continues to evaluate this data and procure strategic mineral rights. At Clear Hills West, Result has already acquired four gross sections of mineral rights targeting a westerly expansion of the Charlie Lake gas trend. The company is also in the process of acquiring new 2-D and 3-D seismic date at Eureka, South Charlie, Worsley West, and Clear Hills West to provide additional Triassic and Devonian drilling inventory for 2006.
Elsewhere on the Peace River Arch, Result has completed the drilling and testing of two gross (0.85 net) wells on a new shallow gas project. The Company has experienced mixed results on this play, with two zones testing wet, one zone testing commercial gas with significant water cuts, and one zone waiting on future completion. Result has assembled 10 gross sections of land on this shallow gas project and is currently evaluating the new well information before finalizing its 2006 plans for this play.
For 2005 year-to-date, the Company has participated in 19 wells (9.4 net), resulting in 17 (8.3 net) gas or potential gas producers, one (0.6 net) oil producer and one (0.5 net) dry and abandoned well. For the balance of 2005, the Company expects to drill a further 10 to 15 gross wells.
As at August 15, 2005, the Company's working interest production volumes (before deduction of royalty interests) totaled 490 boed (field estimate), 97% weighted to natural gas. An additional 350 boed is currently shut-in or tested "behind pipe", and a further estimated 310 boed is expected to be confirmed by production testing before the end of Q3. These figures do not incorporate any potential volumes from the Company's impact gas discovery at Pembina.
Result continues to work diligently towards the permanent tie-in and production of the shut-in and "behind pipe" volumes. Such efforts require timely access to third party processing capacity, partner agreements, equipment availability, and favorable weather conditions. The Company's 2005 exit production target of 1,000 boed is firmly within our sights subject to facilities work proceeding as planned.
About Result Energy Inc.
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".
(x)The TSX Venture Exchange does not accept responsibility for the adequacy and accuracy of this release. The statements contained herein which are not historical fact are forward-looking statements that are based on assumptions and are subject to risks and uncertainties, some of which are beyond the Corporation's control, that could cause actual results, performance or achievement to differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurance can be given that any events anticipated by the forward-looking statements will transpire or occur. The risks and uncertainties faced by the Corporation include the impact of general economic conditions, reserve estimates, commodity prices, competition from other industry participants, ability to retain key personnel and the ability to access sufficient capital. The Corporation assumes no responsibility for the accuracy and completeness of the forward-looking statements contained herein and is under no duty to update any of such statements to conform them to actual results.
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 in the report are derived from converting gas to oil in the ratio mix of six thousand cubic feet of gas to one barrel of oil. %SEDAR: 00012334E