RedWater to Drill 6 Wells, Recomplete 9 Wells
RedWater provided its Capital Expenditure Budget and Production Targets for 2011.
RedWater's Board of Directors has approved an initial 2011 capital budget of $3.0 million. Funds of $2.7 million will be allocated to the drilling of 6.0 and the recompletion of 9.0 net oil wells at Redwater and Westlock. An additional $300,000 will be allocated to development work associated with horizontal drilling projects, including seismic and geological analysis, at Redwater, Westlock and Fairydell-Bon Accord, Canada. Redwater currently has available capital of $3.9 million consisting of $3.4 million cash and a bank operating line of $500,000.
Production levels for 2011, with this budget, targets average production for the year of 200-250 boepd and exit production of 400 boepd. Operating income for 2011 will be focused towards the acceleration of the Company's conventional and horizontal light oil drilling programs.