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Shoats Creek Update

12 Jan 2017 07:00

RNS Number : 9594T
Red Rock Resources plc
12 January 2017
 

Red Rock Resources plc

 

("Red Rock" or the "Company")

 

Shoats Creek Update

 

12 January 2017

 

Further to the announcement of 14 October 2016, Red Rock announces an update in relation to the Company's investment in the Shoats Creek Field in Beauregard Parish, Louisiana ("Shoats Creek").

 

Highlights:

 

· Lutcher Moore ("LM") 20 Gas Line Connected - Hydrocarbon Production Not Yet Stable

· Operator Mayan Energy Estimates LM20 Production at 70 barrels of oil per day ("BOPD") - 14 BOPD net to Red Rock

· LM13 Well Tested for Inclusion in Field Development Program - New Payzones Under Consideration

 

Shoats Creek Overview

 

The Company was recently informed as to the latest developments at its investment in the Shoats Creek oilfield in Beauregard Parish, Louisiana. The Operator, Mayan Energy Plc, indicates that it continues to focus on increasing production through the development of multiple oil and gas wells at Shoats Creek to include a combination of new drill wells and reworking of existing wells on the property.

 

LM 20 Well

 

The LM20 well has now been reported to be connected to the local gas line, however a variety of down-well factors have kept production levels from stabilizing as desired. The Company expects ultimate production levels to stabilize in the region of 70 BOPD. This will result in 14 BOPD net to Red Rock. Red Rock retains a 20% working interest ("WI") and 14.4% net revenue interest ("NRI") in LM20.

 

LM 13 Well

 

The LM13 well has been tested with a view to including it in the fields overall development program. A Rok Quad Neutron Log was used to test the LM13 to assess its viability for reentry and workover. This testing revealed two previously unknown pay formations at 2,600 and 2,900 feet respectively.

 

Mayan Energy reports that these formations had previously been reported as water bearing and that the utilization of modern technology strongly indicates at these formations may be comparable to the deeper Frio Sands formations exploited at twice these depths in other wells in the field, including the LM20. The Company has a 20% WI in the LM13 well.

 

Additional information will be provided as to developments at Shoats Creek as soon as it is available.

 

Red Rock Chairman Andrew Bell comments: "Progress at Shoats Creek has been disappointingly slow since our initial investment approximately a year ago. The prior management of then Northcote now Mayan Energy struggled initially with optimizing production of the LM20 and in progressing to drilling the LM21 and LM22 along the schedule originally planned.

 

Delays were evident as senior and field management were radically changed over the summer and autumn of 2016 leaving Shoats Creek development slowed during this period. 2017 offers a fresh start to Mayan and the investors in Shoats Creek and Red Rock intends to work closely with them to ensure progress is both positive and more rapid in new year.

 

While a relatively small investment compared to our holdings in Jupiter Mines the Board retains its belief that Shoats Creek offers relatively inexpensive cash generative upside to its investors. The Company intends to be active in managing its interests in the project going forward. "

 

Notes

 

Attention is drawn to the announcement by Mayan today for further information on the developments at Shoats Creek. This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

 

 

For further information, please contact:

 

Andrew Bell 0207 747 9990 Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990 Director Red Rock Resources Plc

Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FURDMGMMGMKGNZZ
Date   Source Headline
16th Jun 20164:55 pmRNSDirectors Dealings
14th Jun 20162:22 pmRNSCancellation and Re-issue of Options
8th Jun 20167:35 amRNSShoats Creek Update
17th May 201611:19 amRNSHolding(s) in Company
11th May 20167:00 amRNSUpdate - Colombia
5th May 20167:00 amRNSTransaction completion and operational update
29th Apr 201611:00 amRNSFinancing, Directors Dealings and TVR
28th Apr 201611:00 amRNSAcquisition of Share Interest, Issue of Shares
14th Apr 20161:35 pmRNSDirector/PDMR Shareholding
14th Apr 20167:00 amRNSDirector/PDMR Shareholding
13th Apr 20163:48 pmRNSHolding(s) in Company
12th Apr 201611:46 amRNSHolding(s) in Company
7th Apr 20167:00 amRNSIssue of Shares and Directors' Dealings
31st Mar 20167:00 amRNSUnaudited half-yearly results period ended 31 Dec
24th Mar 20167:00 amRNSShoats Creek Update
7th Mar 20167:00 amRNSShoats Creek Update
22nd Feb 20167:00 amRNSUpdate and significant shareholding
2nd Feb 20167:00 amRNSInfrastructure and production at Shoats Creek
1st Feb 20166:30 pmRNSGrant of Options and Directors' Shareholdings
1st Feb 20161:36 pmRNSTotal Voting Rights
29th Jan 20167:00 amRNSPartial sale of holding, update
22nd Jan 20164:24 pmRNSShare Incentive Plan and Directors' Dealings
20th Jan 20167:00 amRNSInvestment
31st Dec 201512:04 pmRNSTotal Voting Rights
30th Dec 201512:07 pmRNSHolding(s) in Company
29th Dec 20155:56 pmRNSPartial Sale of Holding
21st Dec 20152:47 pmRNSResult of AGM, Board change Capital reorganisation
18th Dec 201511:21 amRNSDirector/PDMR Shareholding
16th Dec 20151:11 pmRNSLoan Repayment and Update
14th Dec 20156:05 pmRNSIssue of Equity
10th Dec 20157:00 amRNSUpdate on Star Striker Limited
2nd Dec 20157:00 amRNSPartial sale of holding
27th Nov 20155:40 pmRNSUpdate on Shoats Creek Oil Project
17th Nov 201512:49 pmRNSOperations Update
12th Nov 20159:49 amRNSFinal Results for the Year Ended 30 June 2015
9th Nov 20155:46 pmRNSTotal Voting Rights
5th Nov 20157:00 amRNSUpdate on Star Striker Ltd
28th Oct 20157:00 amRNSOption to Invest in Shoats Creek
19th Oct 201511:32 amRNSHolding(s) in Company
16th Oct 20157:01 amRNSHolding(s) in Company
16th Oct 20157:00 amRNSHolding(s) in Company
9th Oct 20152:34 pmRNSConvertible Note Conversion
5th Oct 20157:00 amRNSUpdate; Restructuring
21st Sep 20154:46 pmRNSOperations Update
4th Sep 20155:59 pmRNSConvertible Loan Note
1st Sep 20156:26 pmRNSTotal Voting Rights
27th Jul 201511:10 amRNSHolding(s) in Company
15th Jul 20156:08 pmRNSHolding(s) in Company
13th Jul 20157:00 amRNSFinal Tranche of Subscription Shares
8th Jul 20156:18 pmRNSUpdate on Subscription and Directors' Dealings

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