Result Energy Inc. Provides Exploration Update; Comments on Recent Alberta Royalty Changes



    CALGARY, Nov. 12 /CNW/ - Result Energy Inc ('Result'; TSX-V: RTE) is
pleased to provide the following exploration activity update. The Company will
also be presenting a corporate review at the 2007 SEPAC Investor Conference in
Toronto on November 14, 2007.

    
    Central Alberta Area

    -   In the Windfall area, Result recently completed the drilling and
        casing of its first well (33.33% net) targeting the Devonian Nisku
        liquids-rich gas play. This well will be completed and tied in as
        soon as possible, with an on-stream target date of late December.
        A second well (28% net) on this project is expected to commence
        drilling within the next two weeks.

    -   At Modeste, the Company is currently conducting well stimulation and
        testing operations on one of its recently-drilled Viking gas
        prospects (60% net). Initial flow rates are encouraging; and well
        evaluation is ongoing.

    -   At Kakwa, Result has participated in the drilling of a second deep
        basin style gas prospect (25% net). Six potentially productive zones
        have been identified in this well. Completion and stimulation
        operations commenced in early November, and at this time, the Company
        is cautiously optimistic and expects to comment on aggregate flow
        rates by year-end.

    Peace River Arch Area

    -   At East Eureka, Result has acquired a 100% working interest on a new
        Triassic oil play. An exploratory test of this prospect is scheduled
        for the first quarter of 2008.

    -   At Clear Hills North, Result and partners plan to acquire a regional
        airborne remote sensing survey for Gilwood oil potential prior to
        year-end 2007. Under the terms of the proposed agreement, Result's
        partner will bear the full cost of the survey to earn a working
        interest in certain Company lands and the option to participate in
        the drilling of Devonian targets within the area of interest.

    Saskatchewan Properties

    -   The Company has recently completed the drilling of a nine-well infill
        program (50% net) at its North Dodsland Viking project. These wells
        are expected to be completed, stimulated and tied-in before
        December 1st. Recent reductions in the cost of oilfield services have
        improved the economics on this shallow gas play.

    Northeastern British Columbia

    -   Over the past twelve months, the Company has been quietly building a
        significant land position on a new deep Devonian gas play in
        northeastern British Columbia. This play is targeting high-
        deliverability gas within the Keg River platform of the Horn River
        basin. Result plans to shoot a major 2-D seismic program over these
        lands in the first quarter, with a view to drilling the first
        prospect in late 2008. To date, the Company has acquired more than
        23,000 gross acres on this play at a 100% working interest. These
        lands are also highly prospective for the emerging Muskwa and Evie
        shale gas play, which is attracting major industry interest. Recent
        Crown land sales for shale gas mineral rights near Result interest
        acreage have, in aggregate, totaled more than C$ 325 million, with
        certain individual bids exceeding $ 2,000 per hectare.

    In commenting on the Company's prospect inventory, Mr. Bill Matheson,
President, said "We are very pleased with the geographic and geologic
diversity of our exploration portfolio. This program provides us with the
flexibility to allocate our capital resources to the most attractive projects
and jurisdictions".

    Alberta Royalty Review

    -   Alberta recently announced proposed changes to the provincial Crown
        royalty rates which are scheduled to become effective in 2009.
        Assessing the overall potential impact on the Company's operations is
        subject to many uncertainties, including a forecast of future well
        volume levels, the relative mix of Alberta and non-Alberta
        production, and other factors. Many of Result's Alberta natural gas
        projects are expected to experience slightly higher royalty rates,
        yet still yield acceptable economics.

    -   Result intends to mitigate the effect of the proposed changes by
        directing a greater portion of its post 2007 capital projects towards
        its existing Saskatchewan and expanding British Columbia properties.
        In addition, certain Alberta projects may continue to be attractive
        as Crown land sales, farm-in terms and third party service costs
        begin to reflect the revised economic realities.

    Natural Gas Hedging Program

    -   Result has recently entered into two new natural gas price hedges,
        both for 1,500 GJ/d. The first hedge is a costless collar with a
        $6.50 / GJ floor price and an $8.15 / GJ ceiling for the
        November 2007 to March 2008 period. The Company has also sold forward
        1,500 GJ/d at $6.25 / GJ for the November 2007 to October 2008
        period.
    

    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".

    The TSX Venture Exchange does not accept responsibility for the adequacy
    and accuracy of this release.

    Investors are cautioned that this news release contains forward-looking
information. Such information is subject to known and unknown risks,
uncertainties and other factors that could influence actual results or events
and cause actual results or events to differ materially from those stated,
anticipated or implied in the forward-looking information. Readers are
cautioned not to place undue reliance on forward-looking information, as no
assurances can be given as to future results, levels of activity or
achievements.

    %SEDAR: 00012334E




For further information:

For further information: William Matheson, President & CEO, Result
Energy Inc., (403) 777-0007

Organization Profile

RESULT ENERGY INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890