Rocksource Accelerates Drilling, Ups US Reserves
Following the success of its first two operated wells in Texas, Rocksource ASA Group--through its US subsidiaries Rocksource Energy Corporation and Sandhawk Energy LLC--has elected to extend its current drilling program with a further development well (Morian 5). This well will be drilled to around 12,000 feet and is expected to reach target depth in March.
In addition Rocksource has sanctioned the deepening of the Morian 3 well to 13,500 feet to test further resources. This will require a temporary shut-in of Morian 3 production. Results from this well will be available by the end of the month, after which the rig will move to drill Morian 5.
At the time of acquiring Sandhawk Energy LLC in October 2006 the initial reserve estimate (P50) for Drews Landing North was 13 billion cubic feet of gas (bcf) (2.2 million barrels of oil equivalent [boe]). Following completion of the first two wells, the reserves estimate (P50) for the Drews Landing North area has been revised to 21 bcf (3.5 million boe).
Rocksource believes that these reserves can be increased even further by testing additional hydrocarbon pools with a total exploration potential (P50) of 24 bcf (4 million boe). This potential will be tested by the drilling activities described above. Success in these activities will increase the total P50 reserve potential in the Drews Landing North area to 45 bcf (7.5 mill boe).
In addition to the activities described above completion work continues in the latest discovery well Morian 4. This well is now expected to flow gas to sales before the end of February.
All three wells are expected to be in production early in 2nd quarter and should make a significant contribution to achieving the production target of at least 1,000 boe per day in 2007.
Rocksource continues to evaluate the New Ace
Field and the Drews Landing North and South
Area, and is planning a further drilling campaign later in 2007. Reserve updates and
production increase will be reported as part of
the regular financial reporting from Rocksource.