In the Killam area of Alberta, Rival followed-up its Q4 2004 discovery with two successful oil wells. These wells have been completed and are waiting on surface equipment to complete the tie-ins and once Board approval is received for the Company's "holding" application, these wells will be placed on production. The application for this spacing unit relaxation was submitted in early March of this year and approvals are expected shortly.
Rival has been producing approximately 800 boe/d for the past two months, after the April sale of the Suffield, Saskatchewan oil property and the loss of approximately 110 boe/d of natural gas equivalent production from two different wells in east central Alberta that failed to perform to expectations once placed on-stream in late March of this year. However, the drilling success realized to date, combined with the 150 boe/d of production waiting to be placed on production, will push our production volumes back to about 950 boe/d over the next 30 days.
The Company continues to pursue many growth opportunities at this time and will be adding to its exploration staff in order to more aggressively gain entry into a couple of new play areas. Corporately, Rival continues to test the acquisition market, both corporate and property, and remains confident that it will be able to conclude a transaction during the 2005 calendar year.
Rival Energy has recently received approval from the TSX Venture Exchange to conduct a normal course issuer bid. The maximum number of common shares, which Rival Energy may acquire for cancellation under this bid, is 956,064 shares, representing approximately 5% of the 19,121,281 common shares, which are currently outstanding.
The Company is conducting the normal course issuer bid because, in the view of management, trading prices for the Corporation's shares may at times be less than its asset value per share and lower on a cash flow per share multiple than many of its peer corporations. The bid commenced on June 17, 2005 and will terminate on June 16, 2006. Any purchases made by Rival under the bid will be made through First Associates Investments Inc. and through the facilities of, and subject to approval by, and in accordance with the rules of, the TSX Venture Exchange.
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