The company reports 3.4 mmstboe of proved plus probable reserves and 2.6 mmstboe of total proved reserves effective March 31, 2005 (Gilbert Laustsen Jung & Associates Ltd.) First quarter finding and developments costs were $12.61/boe for proved plus probable reserves and $15.21/boe for total proved reserves. The company had capital expenditures of $8.8mm in Q1 consisting of $4.7mm for drilling and completion, $2.0mm for tie-in and facilities, $1.4mm for crown land acquisition and $0.7mm for seismic. RSX drilled 22 wells in the winter program (10.55 net) resulting in 10 oil wells (6.0 net) 10 gas wells (3.55 net) and two dry holes (1.0 net). An additional 8 wells were deferred until the 2005 2nd Qtr.
Ten wells (3.70 net) were drilled in the first quarter resulting in 5 oil wells (2.35 net) and 5 gas wells (1.35 net). RSX tied-in a gas well at its Bezanson property (RSX 100%) and re-completed a producing oil well at its Karr property (RSX 100%) during the quarter. During the second quarter, RSX expects to spud an oil development well at its Karr property (RSX 100%) which had been scheduled to be drilled prior to break-up. A seven well shallow gas development program will also spud in Willesden Green (RSX 30%), with the gas expected to be on-stream by late June. New production totaling 600 boepd net to RSX at Randell and Willesden Green was not realized until mid - late March and had little impact on the first quarter average. Current production is approximately 1,500 - 1,600 boepd with 100 boepd shut-in in the Karr area, due to road bans imposed in mid-May.
RSX has budgeted $22 million for the 2005 capital expenditures program consisting of $7 million for exploration drilling and $10 million for development drilling and tangibles. The company has also budgeted $3 million for Crown land acquisition ($1.2 million in the first quarter). Twenty-two wells (12.5 net) are planned for the second and third quarters of 2005. The capital program will be funded through cash flow from operations and bank debt.
In the spring program, RSX plans to test new play concepts at Paddle River, Grande Prairie and Tomahawk. RSX has spudded a 1,500m test at Paddle River and expects to spud locations late in the second quarter at Grande Prairie and Tomahawk. RSX will retain a 100% interest in each of the new prospect areas. The balance of the spring and summer program will focus on continued development at Willesden Green (10 locations), Karr (one location) and Gold Creek (one or two locations).
As at March 31, 2005 RSX has an interest in 97,459 gross acres (54,774 net) in 33 prospect areas. Approximately 50% of the lands are in its core areas.
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