Red Rock Energy Inc.
TSX VENTURE : RRK

Red Rock Energy Inc.

February 13, 2012 12:33 ET

Red Rock Initiates Oil Exploration Activity and Confirms Oil Flow Potential

CALGARY, ALBERTA--(Marketwire - Feb. 13, 2012) - Red Rock Energy Inc. (TSX VENTURE:RRK) ("Red Rock" or the "Company") announced today that it has completed the initial phases of its three-well workover program in North Eastern British Columbia. Conducted through its wholly owned subsidiary Red Rock Projects Inc., this program is designed to test two oil bearing formations. Operations commenced in early January 2012 with activity on the planned well recompletions and production test.

Initial results from the well that was production tested are encouraging. The well swabbed 31° API oil for a period of five consecutive days producing at a stabilized rate of 48 bopd and steady water cut of 50%. Currently the well has been shut-in for pressure build-up and production options are being evaluated for a nearby tie-in. This well has been designated as a discovery well by the British Columbia Oil and Gas commission which entitles it to a royalty holiday for 3 years. Well data from wells in the area indicates that this oil pool has the potential for multiple drilling locations with significantly thicker oil pay on additional lands now controlled by Red Rock. Additionally Red Rock's technical team continues to evaluate the potential of utilizing horizontal drilling applications to maximize oil recovery from the tested formation and the potential of secondary targets in the region.

To date Red Rock has received preliminary results from the workover programs from the other two wells and will commence further testing of these wells pending the availability of equipment and other resources. Upon completion of the above mentioned programs, Red Rock will have successfully tested all three wells with the intent of moving each of the wells into the next phase of development and production pending results. Moving forward, Red Rock continues to actively compile, review, integrate and interpret data with the goal being to identify multi-well oil prospects.

Through Red Rock Projects Inc., the Company owns or controls a working 100% interest in 13 of 15 sections of land in the region. All sections were procured for their light oil potential utilizing a geological model that has been substantiated by several analogies.

In releasing the first test results of the Company's new oil exploration operations, Sandy Loutitt, President of Red Rock, stated: "We are extremely pleased with the results obtained from these projects. The data from the well that was production tested were very encouraging, and the initial results obtained from the two wells with workover programs partially completed positions us well to move ahead with further testing. Most importantly, the conclusions from these operations as a whole confirm in large measure that the potential of these oil-bearing zones is indeed very high, and we look forward to exploring the numerous other targets which exist on Red Rock lands."

READER ADVISORY

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the mining industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

Neither the TSX Venture Exchange nor is Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Red Rock Energy Inc.
    Sandy Loutitt
    President
    403-685-1047

    Red Rock Energy Inc.
    Rick Couronne
    Investor Relations
    403-685-1047
    www.redrockenergy.ca