Resolute Resources begins strategic review
2024-01-29 19:19 ET - News Release
Mr. Alexander Lindsay reports
RESOLUTE RESOURCES LTD PROVIDES UPDATE AND INITIATES STRATEGIC REVIEW
Resolute Resources Ltd. has provided an update with respect to its oil project in northwest Alberta and strategic direction going forward. Resolute's Grimshaw channel well demonstrated a new heavy oil pool containing six degrees API. Oil samples collected while drilling exhibited light-medium brown oil staining, which visually appeared different to the black six-degree API oil collected during the workover of the channel well. The company is currently waiting on oil fingerprint analysis comparing oil samples recovered while drilling versus oil samples recovered during the workover. The completion of these additional data analysis are expected to provide an indication as to whether alternative conventional production options exist to exploit the reservoir discovered at Grimshaw.
At this time the company is shifting focus to its Flood property where the company believes the potential for higher API oil remains. The company's Flood acreage includes an abandoned well with a fluid test within the Gething that produced about 35 API oil. The Flood lands contain over 9,000 acres of leased land and between 45 and 51 locations between a channel and a shoreline sand based on Resolute's resource report from 2023. Management of the company believes the next steps to unlocking value at the Flood lands include drilling a well to reconfirm fluid quality and testing the production potential of the channel and shoreline sands. Any new well completion or exploration activities will need to be financed through additional capital. To support the efforts of the company to unlock the potential value that exists at Flood, the company has initiated comprehensive strategic alternatives review to maximize shareholder value and position the company for sustained growth (the strategic review). This includes but is not limited to possible mergers and acquisitions, joint ventures, and raising of additional capital.
There is no assurance that the strategic review will result in any specific transaction or other strategic alternative, and the company does not intend to disclose further developments unless and until the board of directors of the company has approved a specific course of action.
Investors and other stakeholders are encouraged to monitor the company's website and corporate/financial disclosures for updates related to the strategic review process.
About Resolute Resources Ltd.
Resolute Resources is an energy corporation trading on the TSX Venture Exchange under the symbol RRL. Resolute Resources has projects in northwestern Alberta, where it is exploring shallow cretaceous sandstone reservoirs that can be exploited with multilateral open hole wells. Resolute Resources has accumulated just under 35,000 acres in its GFD light oil project in northwestern Alberta. Resolute Resources is pursuing projects that are high in environmental, social and governance metrics that result in lower-emission oil and low water use due to no hydraulic fracturing, but that provide high economic returns.
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