CALGARY, Aug. 27, 2018 /CNW/ - Return Energy Inc.
("Return" or the "Company") (TSX-V: "RTN") today
filed with Canadian securities authorities its Second Quarter
Condensed Consolidated Interim Financial Statements and
Management's Discussion and Analysis for the period ending
June 30, 2018. Copies of the filed
documents may be obtained through www.sedar.com, Return's website
www.returnenergyinc.com or by emailing Return at
info@returnenergyinc.com.
Following up on the Company's previously announced Triassic
Charlie Lake light oil drilling success at Rycroft, Alberta, the Company is focusing its
efforts on the development of its Upper Charlie Lake dolomitic
siltstone play. Subsequent to the end of the second quarter, the
Company acquired an additional four and one-half sections (2,880
acres) of Crown petroleum and natural gas rights on its Upper
Charlie Lake play on which an additional twelve (12) potential
horizontal well locations have been identified, bringing the total
inventory of potential horizontal wells to thirty-four (34).
This same zone is the target of a large-scale horizontal drilling
campaign that has been advanced by a senior producer (and several
junior producers) over the last four to five years. To date, over
175 Charlie Lake horizontal wells have been drilled by other
operators immediately west and north of the Company's Rycroft acreage, with initial production rates
(averaged over the first ninety days) as high as 860 barrels of oil
per day (1,115 BOE per day) as evidenced by a third-party
horizontal well located at 15-36-78-7W6M.
Discussions with landowners are ongoing with respect to the
location of a central light oil battery facility and the location
of gathering lines to take produced solution gas from the
Charlie Lake light oil development
to Return's 100% owned Rycroft gas
plant. In addition to central battery planning, front-end
engineering work has commenced with respect to the handling of
produced water that is common to Charlie
Lake oil production in the immediate area.
As previously announced, combined production test rates from
Return's two 100% owned Charlie
Lake vertical wells drilled in the first quarter totaled 170
BOE per day. Production from these wells will be brought on as part
of the overall infrastructure development which includes the above
mentioned pipelining and water handling.
In addition to the thirty-four (34) horizontal locations
identified in the Upper Charlie Lake play, thirteen (13) potential
vertical well locations have been identified for the underlying
Braeburn member of the Charlie
Lake formation.
The Company is currently evaluating options with respect to
sourcing funds required to advance the above mentioned development
drilling and associated infrastructure
program.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Reader Advisories
Forward-Looking Statements. This news release contains
forward-looking statements and information. More particularly, this
document contains statements and information concerning the timing
of drilling, pipeline installations and general field operations.
Forward-looking information is frequently characterized by words
such as "anticipate", "plan", "expect", "project", "intend",
"will", "believe", "anticipate", "estimate", "scheduled",
"potential", or other similar words, or statements that certain
events or conditions "may", "should" or "could" occur. Use of
the word "vertical" in describing a wellbore may include wells that
are deviated slightly as opposed to wellbores that are horizontal.
The forward-looking statements and information are based on certain
key expectations and assumptions made by Return, including
expectations and assumptions concerning availability of equipment,
available funds and receipt of required regulatory approval.
Although Return believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Return can give no assurance that they will
prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, risks
that required regulatory approvals are not obtained and that
specific equipment is delayed or not available. The reader is
cautioned that assumptions used in the preparation of such
information, although considered reasonable by the Company at the
time of preparation, may prove to be incorrect and readers are
cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The Company
does not undertake any obligation to release publicly any revisions
to forward-looking information contained herein to reflect events
or circumstances that occur after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws.
BOE Presentation. References herein to "BOE" mean barrels of oil
equivalent derived by converting gas to oil in the ratio of six
thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. BOE
may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. In addition, given
that the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
SOURCE Return Energy Inc