Rocksource Wins RRC Okay to Co-mingle Drews Landing Production

Rocksource ASA said that its US subsidiary, Sandhawk Energy LLC, has received approval from the Railroad Commission of Texas (RRC) to co-mingle production from any or all of the reservoir zones in any well in the Drews Landing Field. This favorable decision was announced following a hearing at the RRC and will lead to more efficient production and a greater recovery from the field.

The co-mingling permit, formally known as "Field Rules," covers the entire interval of sands from 7,665 feet to 12,650 feet as shown in the recently completed Morian # 3 well.

Rocksource has already started preparations to establish co-mingled production following stimulation of some of the productive sands and expects to gradually increase overall production from the area. The target production of 1,000 barrels of oil equivalent per day (boepd) by 2007 remains the same and is expected to be reached well before year-end.

The Drews Landing drilling program started in December 2006 and includes five wells, where four of which have now been completed. The final well in this stage of the program was spudded on Friday, June 8.

As previously reported, the drilling program has proved 5 million barrels of oil equivalent (boe) reserves and established contingent resources in excess of 8 million boe.


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