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 [email protected].
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.
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
For further information: This news release is reproduced on Return's website at www.returnenergyinc.com. For this and further information about Return please visit the website or contact Ken Tompson (President & CEO) at 403-265-8011 ext. 224