Last checked at 14 Oct 2016 11:00
Red Rock Resources plc
("Red Rock" or the "Company")
Update - Gas production begins at Shoats Creek
14 October 2016
Further to the announcement of 5 September 2016, Red Rock announces an update in relation to the Company's Shoats Creek Field in Beauregard Parish, Louisiana ("Shoats Creek"). The Company has been advised by the operator that gas production has begun from the Lutcher Moore 20 ("LM20") well at Shoats Creek.
Highlights:
· A 600 metre gas line has now been installed which enables oil and gas to be produced from wells at Shoats Creek, including LM 20.
· LM 20 has now started delivering gas
· Revised production rates from LM20 will be reported shortly, once they have been determined
• Gas sales to Enerfin Field Services LLC, a subsidiary of Enerfin Resources Company will start at the end of the second week of October with first cash flow from gas sales expected in November 2016
· Red Rock has a 20.00% working interest ("WI") and 14.4% net revenue interest ("NRI") in LM20.
Red Rock Chairman Andrew Bell comments: "We are pleased to see that the new management at our partners Mayan Energy Ltd ("Mayan")(AIM:MYN) remains committed to the development of the Shoats Creek field and is already showing some results from its initiatives there. We look forward to working with them.
With gas prices beginning to reflect the recovery in the oil price and trading at over $3 per Mcf, we look forward to strengthening revenues from LM20 and a rapid progression of the other wells in the field, including LM21 for which we have pre-paid $148,250 as our share of funding."
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