Reliable Makes Headway in 1Q
Reliable Energy provided an operational update on its first quarter 2010 activities.
HIGHLIGHTS - Operational Achievements
- Increased average daily production to 306 boe/d, an increase of 102 boe/d or 50% over Q4, 2009.
- Exit production at March 31, 2010 increased to approximately 367 boe/d (95% oil).
- Drilled 9 (6.95 net) wells, including 2 (1.45 net) exploration wells and 7 (5.5 net) development wells.
- Acquired 8,250 acres of undeveloped land in our core area.
- Shot 124 kms of proprietary 2D seismic in our core area.
Production during the first quarter averaged 306 boe/d, an increase of 102 boe/d or 50% from the Q4, 2009, as Reliable continued its strategy of balancing development activity with exploration opportunities. Average production was slightly hampered by the early onset of spring which made field activities difficult, resulting in Reliable being unable to perform completion operations on 4 wells from the quarters drilling activity.
During the quarter Reliable drilled a total of 9 (6.95 net) wells in its core area in Manitoba. This included 2 (1.45 net) exploration wells and 7 (5.5 net) development wells. Five of the wells were placed on production and the remaining four wells will be completed as soon as road bans are removed in Manitoba, which is expected between the mid to end of May, 2010.
Reliable continued to be active in its core area, acquiring 8,250 acres of undeveloped lands during the quarter as the company continued its growth strategy that includes increasing our exposure to large high quality oil projects in Manitoba and Saskatchewan.
Following on from the fourth quarter exploration drilling program, Reliable shot another 124 kms of 2D seismic. This data is being used to delineate the size of new pool discoveries made in Q4, 2009 and identify new locations for drilling during 2010.
Reliable announces that Mr. Don Williams has departed Reliable to pursue an international opportunity. At the same time, Reliable is pleased to announce that Mr. Chris Barton, who has been consulting with Reliable since 2008, will increase his role to that of Head of our Exploration team. Mr. Barton has a B.Sc. in Geology from the University of Calgary and his career has included working for such companies as Unocal, Conoco, Pinnacle and Burlington in increasing areas of responsibility. In 2004, he started Shadow Energy Inc., a geophysical consulting company working for numerous oil & gas clientele and in 2006 he joined Kereco Energy Ltd., as VP Exploration until 2008, when Kereco was sold. Since that time he has consulted to Reliable and has played a key role in developing Reliable's exploration and development program and is a welcome addition to Reliable's team.