FV ( see below ) is 100 % owned by Rpt has had 2P reserves of about 7 Mmboe.
It is a high impact drilling opp with each of 3 development wells with IP of at least 1000 boepd plus gas liquids and up to 2300 boepd.
RPT began drilling its first well in 2012 and encountered completion problems when the drill string got stuck.
Rpt spent nearly $25 million on the well .....$18 million estimated to completion...and blew their wad of cash.
Thats why the share price price collapsed
it has now paid of all its FV liabilities and is reworking its gas wells plus it has the only gas processing plant at full capacity.
Fair value is now increasing rapidly and should continue to increase as it gets its full house in order fir a possible sale.
FV concession remains a very prospective asset and should command good prices in a market where gas prices have tripled in the past year,,,,
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CALGARY, ALBERTA. ArPetrol Ltd. (“ArPetrol” or the “Company”)
(TSXV:RPT) announces an operational update on its Faro Virgenes extended reach drilling program.
The first Faro Virgenes extended reach well was drilled to a Measured Depth (MD) of 3467m at an inclination of 76 degrees. The top of the Springhill formation reservoir section was encountered on prognosis. While preparing the hole to run 9 5/8” casing, the drill string became stuck at 2399m MD. ArPetrol has made multiple attempts to free the drill string, without success. As a consequence, ArPetrol has severed the drill string and has set cement plugs to temporarily suspend operations. The incident, operations associated with attempts to remedy the incident, suspension activities, and the cost of tools lost in hole have added approximately $4 million to well costs. Further costs will be incurred for personnel and equipment demobilization (related to, among other things, service providers, rental tools, the drilling camp and the drilling rig) and unused equipment restocking. Following this the working capital of the Company would be estimated to be approximately $2 million, however, this will vary depending on the final demobilization costs as well as any currency exchange fluctuations.
Based on its technical work and consultation with the drilling experts, the Company determined that approximately an additional $10 million would have been required to reactivate the drilling, completion, tie-in and production testing of the well at this time. The Company has attempted to identify sources of additional funding to continue with this well, but based on these attempts has determined that the required funding is not currently available. Management and the board of directors wish to continue to advance this project and remain committed to create value from the Company's assets. They will be reviewing strategic alternatives in order to identify and consider all options available in order to determine the optimal course of action for the Company and its shareholder