RSX (35%) has flow tested its successful Kiskatinaw gas well in the Boundary Lake area. The well flowed at rates of 1.7 - 1.9 Mmcf/d at 1,345 psig. Tie-in is expected to be completed by mid-August. A development location is being reviewed and, if warranted, will spud in early September.
In the Willesden Green area, RSX (30%) participated in the construction of a 13.3 km gathering and transportation pipeline with 4,100 Bhp of compression. Construction was completed on July 3, 2004. Well optimization has now begun as a result of the de-bottlenecking. A 7-well gas development program began on July 17th with the drilling of the first of two deep locations targeting Rock Creek gas at 2,250m. The company and partners will utilize one rig to drill 5 development wells to exploit gas bearing zones in shallow sands at 800 - 1,000m.
At Carrot Creek in central Alberta, RSX (30%) will participate in the completion of a potential Cardium gas well drilled as part of the winter program. The well can be tied-in by mid-September.
At Gold Creek in Northern Alberta, RSX (50%) is surveying 2 development locations to offset its recently completed Charlie Lake gas well drilled in March 2004. The well is capable of producing at greater rates but is currently choked back to 600 Mcf/d. Additional compression is being installed which is expected to allow production to increase to 1.1 - 1.5 Mmcf/d by mid September. Spudding of the first development well is planned for late August.
In the Ogsden area of Northern Alberta, (RSX 25%) will participate in the drilling of 3 Granite Wash development wells offsetting successful oil wells drilled in the winter program. The first well spudded on July 21, 2004 with additional wells to spud on July 28 and August 10, 2004. New production will be flowlined to facilities acquired by RSX (14%) in March 2004.
The company is reviewing fall drilling locations at Kinakin, Tomahawk and Chip Lake. All locations will target Cretaceous gas bearing zones at depths of 1,700 - 2,200m. RSX will maintain working interests of 50 - 100% in each of the three areas and will complete its technical review of the areas by mid-August.
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