RockBridge Acquires BC Producing Oil & Gas Interests
Published August 5th, 2009
RockBridge Energy Inc. (RockBridge) (TSX VENTURE: RBE) is pleased to announce that it has acquired a working interest in producing oil and gas properties located in British Columbia north-east of Fort St. John, known as the Drake and Woodrush properties. The properties, which include 5 gas wells and 1 oil well, currently producing approximately 500 boed (barrels of oil equivalent per day), are operated by a high-growth oil and gas company listed on the Toronto Stock Exchange and the New York Stock Exchange AMEX. The operator’s reserve evaluators placed a reserves value on the Drake and Woodrush properties of $24.95 million, on a proved and probable basis at 10% present value.
In addition to the wells, the properties include a production gathering system and state-of-the-art sour gas oil and production facility sized to handle more than 1,000 bopd (barrels of oil per day) of oil and 3,000 mcfd (thousand cubic feet per day) of gas. The production facility, which cost approximately $7 million, is equipped to handle the full development of the oil and gas pools located under the properties. RockBridge has acquired a 1.0% working in the project for $180,000, plus funding for new wells.
The Drake property includes 4 producing gas wells with a production capacity of 2,200 mcfd. Current production is approximately 2,000 mcfd with one well restricted due to surface equipment limitations. The property is currently fully developed, however there is upside with possible expansion of the pool to the western portion of leases.
The Woodrush property currently has one producing oil well and one gas well which has been recently temporarily suspended pending an increase in the gas prices, expected later this year. The gas well was producing approximately 1,200 mcf per day. The oil well is capable of producing in excess of 300 bopd but is restricted for at least one more year to 165 bopd due to government conservation policies.
The project includes a commitment for funding at least 4 further wells on the Woodrush property, including 3 new oil wells anticipated to be completed in spring 2010 and 1 new gas well in 2011. The operator estimates that the reserves for the properties could grow from about 1.1 million boe to 3.0 million boe with the addition of 450 or more new boed.
A cash finder’s fees, in accordance with the policies of the TSX Venture Exchange, will be paid.
For more information on RockBridge, please visit the website at www.rockbridgeenergy.com.
