GREY:ARWJF - Post by User
Post by
cgiffinon May 07, 2014 8:27pm
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Post# 22536305
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4. The recent interview posted stated about 1.5mil debt as of May? Weren't
we supposed to be debt free by July? Where does this stand?
ANSWER:
Chris, back to our water disposal facility at West Hazel again, we took on a
bit more debt due to the installation of the water disposal facility. The
water disposal facility was a KEY project for the Company in that it
immediately eliminated the West Hazel water-trucking and disposal costs
which amounted to approximately $130,000 per month JUST IN PAYING TRUCKERS
TO REMOVE THE WATER, the disposal facility allowed for increased production
- i.e the recent drilling of our new successful oil well. Chris I am
attaching our news release announcing this work so that you can see some of
the key attributes / benefits of this facility
5. Kerrobert plans in terms of timing of drilling? Results? Why no more
money to predictable oil vs exploration?? Is that indicating strong feeling
that it isn't truly exploratory at kerrobert??
ANSWER:
Kerrobert is a very exciting program for us, we shot a 21 square kilometer
3D Seismic program we announced commencement of this Program January 23,
2014. Kerrobert represents what we believe could be a company maker. If we
are successful in proving that the oil can flow to Aroway’s targeted
formation (the Lloydminster) then we are very confident that we can do some
2500 barrels per day and this would be stable long life production. Please
keep in mind, as we have stated in previous announcements and updates that
this is a pure exploration play Chris and provided we can prove that the oil
can flow that will be key – hence the Company maker. One key point for us
is that we know that there is oil there as there is a private company just 8
miles to the south of our lands producing 2900 barrels per day out of our
targeted formation. We are now evaluating the 3D Seismic data and plan to
drill our test well mid to late August.