UpdateReal Resources Inc. Updates First Quarter Drilling Activities And Plans For 2003
CALGARY, Feb. 25 /CNW/ - Real Resources Inc. ("RER" - TSX) is more than
halfway through a very successful first quarter drilling program which will
total approximately 24 (22 net) wells. Year to date, a total of 15 (14 net)
wells have been drilled resulting in 9 (8 net) gas wells, 4 (4 net) oil wells
and 2 (2 net) dry holes for an overall success ratio of 87%. Nine of the first
15 wells drilled were exploratory, while the remaining 6 were development
wells. New gas discoveries were made in the Scandia/Enchant and W5M core
project areas, while three successful horizontal oil wells were drilled at
Neutral Hills. Three drilling rigs are currently active on gas prospects in
the Whitecourt area of the Company's W5M project.
Real's production volumes are currently averaging 6,100 barrels of oil
equivalent per day comprised of 3,800 barrels of oil per day and 14 million
cubic feet of natural gas per day. At Scandia, the Company currently has
approximately 3 million cubic feet of natural gas deliverability from wells
tied into facilities but not on production. This production is shut-in due to
third party processing constraints. Real is actively pursuing processing
alternatives and anticipates bringing this gas on-stream by the end of the
second quarter.
As a result of early drilling success and a rapidly growing prospect
inventory, the Company is planning to increase its 2003 capital budget from
$45 to $50 million. This increase will allow Real to drill approximately 130
(120 net) wells versus the previous projection of 115 (105 net) wells. Over
65% of this years drilling program will be focused on gas prospects.
Real Resources Inc. is a Calgary based oil and natural gas company active
in the exploration, development and production of crude oil and natural gas in
Western Canada. The Company has grown through exploration, development and
strategic acquisitions.
This news release contains forward-looking statements that involve risks
and uncertainties. Such information, although considered reasonable by Real at
the time of preparation, may prove to be incorrect and actual results may
differ materially from those anticipated in the statements made. For this
purpose, any statements that are contained herein that are not statements of
historical fact may be deemed to be forward-looking statements. Such risks and
uncertainties include, but are not limited to risks associated with
operations, such as loss of market, regulatory matters, commodity price risk,
environmental risks, industry competition, and ability to access sufficient
capital from internal and external sources.