Redcliffe Exploration Inc. announced the completion of the non-operated Gold Creek compression expansion. This expansion will add a net 5,000 mcfpd capacity and allow Redcliffe to increase production at Gold Creek from existing wells and future drilling proposed for 2008. While this compressor originally came on stream February 16, 2008 considerable down time has been experienced due to initial start-up problems associated with the high liquids content of the gas production. We estimate that with stabilization of these issues Redcliffe will increase net Gold Creek production by 400-500 boepd. In addition to this increase, a new well has commenced production east of our main Gold Creek property at 1,000 to 2,000 mcfpd plus liquids. Redcliffe has a 45% interest in this well that tested over 4,000 mcfpd. Based upon the anticipated stabilized rate of 2,000 mcfpd we estimate this well will add approximately 150 net boepd to our production base.
With new wells and new facilities there is always uncertainty as to sustained production rates during the startup and early production phases. With these current additions Redcliffe estimates that February exit production rates will be in the range of 1200 - 1300 boepd as compared to a January average of approximately 800 boepd. This production will be 80% weighted towards natural gas. With stabilization of the facility operations and the addition of a new well in Medicine River, Redcliffe anticipates further increasing this rate to over 1300 boepd in March of this year.
Redcliffe estimates additional increases in production in the second quarter of this year from a currently testing oil well in Wapiti area and the completion and testing of a new gas well in Elmworth.
Redcliffe also anticipates issuing additional press releases this week detailing year-end reserves increases and details of its 2008 estimated capital programs and growth strategies for 2008.
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