Rocksource Announces Addtl Production, Exploration Wells in U.S.
Rocksource ASA US subsidiaries have successfully drilled and completed a total of 9 wells in the first and second drilling campaign in its Drews Landing and New Ace field, proving total reserves of 4.9 mill barrels of oil equivalent as of 31 December 2007. To optimize commercial output two additional production wells are sanctioned in a third drilling campaign in the fields, to be started during this summer. Further wells and re- completions are being evaluated as part of the development plan to optimize the economic results from the proven reserves. The re-completions are expected to maintain a longer plateau production to take advantage of the current and expected short- term high prices for natural gas and oil.
In addition, and as part of the growth ambitions and opportunities for the US activities, an exploration well has been sanctioned for July drilling. This is on heritage acreage in Mississippi held by US subsidiary Rocksource Energy Corporation. The well is a shallow well that will be drilled to less than 7,000 feet and at a cost of less than USD 1 million fully completed for sales. The prospect has a reserve potential in excess of 1 million barrels of recoverable oil. Should the exploration well be successful, further wells shall be required to produce the expected reserves.
Rocksource is pursuing its business model in the US of combining state-of-the-art technology with local expertise and experience which has led to its current success, and is currently evaluating prospects for drilling both on currently held leases and other areas covered by 3D seismic.
Development options for the contingent reserves in Drews Landing and New Ace are being considered but no firm plans are yet established. These reserves are held by production, and it is therefore no timing constraints as to when they must be developed and produced. Rocksource has consequently decided to prioritize work on certain exploration prospects which must be drilled within contractual time limits in the immediate term.