Rock Energy Inc. Announces Operations Update for Q3 2013
CALGARY, ALBERTA--(Marketwired - Oct. 15, 2013) - Rock Energy Inc. (TSX:RE) ("Rock" or the "Company") is pleased to report its operating results for the three months ended September 30, 2013. Rock is a Calgary-based crude oil exploration, development and production company.
Production and Operations
During Q3 2013 Rock's daily sales averaged approximately 3,850 boepd (92% oil & liquids), and the Company is currently producing over 4,000 boepd (approximately 90% oil & liquids). Production for the quarter has exceeded management's forecast estimate of approximately 3,500 boepd, primarily due to Rock's continuing success in its heavy oil pool at Mantario, which is currently producing over 2,700 bbls/d. During the quarter Rock drilled a total of eleven (11.0 net) oil wells. Seven (7.0 net) vertical wells were drilled in further delineating the pool at Mantario. At Onward, one (1.0 net) vertical well was drilled in conjunction with the water flood project, one (1.0 net) exploration well was successful in penetrating a new Lloydminster heavy oil pool and two (2.0 net) horizontal wells were drilled to test the light oil productivity of the Viking Formation.
Viking Light Oil Resource Play at Onward
Rock has assembled over 37 net sections of Viking rights in the Onward area, which surround our existing Lloydminster Formation water flood project. This largely contiguous acreage is approximately 2 miles north of the Kerrobert Viking oil pool and adjacent to multi-frac horizontal wells that were recently drilled by two industry competitors. Rock has assembled exploratory data from vertical Viking completions on its acreage, including positive production tests in three completions, and confirmed the existence of light oil in the Viking on our lands. During August and September, the Company successfully drilled and multi-stage fracture stimulated two Viking horizontal wells which have been on production for 15 days with production rates averaging approximately 40 bbls/d of 37 degree API oil. While these wells have not experienced any pressure declines and are still producing back some completion fluids (approximately 20-30% water cut with the oil), the initial production results are meeting management's expectations. Rock believes these positive production tests, though not necessarily indicative of long term performance or ultimate recovery, confirm that the Viking light oil trend extends onto Rock's acreage at Onward. The Company plans to continue to delineate the pool to determine the full potential of this light oil resource play.
Outlook
During 2013, Rock has been able to deliver significant operational and exploration success in its core areas of operation. For the remainder of the year, operational activities for Rock will include continuing the delineation and de-risking of its new Viking light oil resource play at Onward, and at Mantario the Company will drill its first two horizontal wells and 2-4 vertical step-out locations.