RRK

Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock" or the "Company") announced
today that it has completed the initial phases of its three-well workover
program in North Eastern British Columbia. Conducted through its wholly owned
subsidiary Red Rock Projects Inc., this program is designed to test two oil
bearing formations. Operations commenced in early January 2012 with activity on
the planned well recompletions and production test.


Initial results from the well that was production tested are encouraging. The
well swabbed 31 degrees API oil for a period of five consecutive days producing
at a stabilized rate of 48 bopd and steady water cut of 50%. Currently the well
has been shut-in for pressure build-up and production options are being
evaluated for a nearby tie-in. This well has been designated as a discovery well
by the British Columbia Oil and Gas commission which entitles it to a royalty
holiday for 3 years. Well data from wells in the area indicates that this oil
pool has the potential for multiple drilling locations with significantly
thicker oil pay on additional lands now controlled by Red Rock. Additionally Red
Rock's technical team continues to evaluate the potential of utilizing
horizontal drilling applications to maximize oil recovery from the tested
formation and the potential of secondary targets in the region. 


To date Red Rock has received preliminary results from the workover programs
from the other two wells and will commence further testing of these wells
pending the availability of equipment and other resources. Upon completion of
the above mentioned programs, Red Rock will have successfully tested all three
wells with the intent of moving each of the wells into the next phase of
development and production pending results. Moving forward, Red Rock continues
to actively compile, review, integrate and interpret data with the goal being to
identify multi-well oil prospects. 


Through Red Rock Projects Inc., the Company owns or controls a working 100%
interest in 13 of 15 sections of land in the region. All sections were procured
for their light oil potential utilizing a geological model that has been
substantiated by several analogies.


In releasing the first test results of the Company's new oil exploration
operations, Sandy Loutitt, President of Red Rock, stated: "We are extremely
pleased with the results obtained from these projects. The data from the well
that was production tested were very encouraging, and the initial results
obtained from the two wells with workover programs partially completed positions
us well to move ahead with further testing. Most importantly, the conclusions
from these operations as a whole confirm in large measure that the potential of
these oil-bearing zones is indeed very high, and we look forward to exploring
the numerous other targets which exist on Red Rock lands."


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.

Red Rock Energy Inc. (TSXV:RRK)
Historical Stock Chart
From Jun 2024 to Jul 2024

Red Rock Energy Inc. (TSXV:RRK)
Historical Stock Chart
From Jul 2023 to Jul 2024