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CALGARY, April 9, 2018 /CNW/ - Return Energy Inc.
("Return" or the "Company") (TSX-V: "RTN"), through
its wholly-owned subsidiary, Winslow Resources Inc.
("Winslow"), is pleased to announce that the initial
drilling and completion program at its Rycroft core property north of Grande Prairie, Alberta has concluded with the
successful northerly extension of the Braeburn dolomite of the
Charlie Lake 'S' pool, as
evidenced with the drilling of the 14-27 well, in addition to
confirming the presence of commercial light oil in the overlying
Charlie Lake dolomitic siltstone
encountered in the 6-34 well. This Charlie Lake siltstone is
the target of a large-scale development by other operators
immediately west and north of Return's acreage position where it is
being exploited by way of horizontal wellbores with multi-stage
fracture stimulations.
Braeburn Member, Charlie Lake
'S' Pool
The 100/14-27-076-06W6/0 vertical well encountered the Braeburn
dolomite of the Charlie Lake
formation and, after fracture stimulation, tested 125 BOE/day of
light (370 API) sweet oil and associated natural gas.
During swabbing operations the well exhibited a steady fluid level
and increasing ability to flow as completion fluid was recovered.
Approximately 1,500 barrels of completion fluid remain to be
recovered and oil rates are expected to increase as load fluid
recovery from the fracture stimulation continues. The well is
currently shut-in for initial pressure build-up and equipping
operations are underway. Plans are also underway for the
installation of a pipeline to connect 14-27 to the Company's
wholly-owned and operated Rycroft Gas Plant and, once connected,
the well will be capable of producing without restriction.
Pipelining operations are expected to commence post spring
break-up.
Charlie Lake Dolomitic Siltstone
The second vertical well in the program was drilled at
100/06-34-076-06W6/0 and penetrated a 5.5 metre thick Charlie Lake dolomitic siltstone zone
approximately thirty metres above the Braeburn member.
After fracture stimulation, swabbing operations resulted in
light (380 API) sweet oil rates of approximately 45
barrels of oil per day. Gas flow was restricted during the
test period so rates are not available however casing pressure
continued to build throughout the test period. Water cuts
observed during testing and after the recovery of load fluid are
consistent with those observed in the large-scale Charlie Lake dolomitic siltstone development
producing to the immediate west and north of Return's landholdings
where several of the more recent horizontal wells drilled by
competitors have recorded production rates exceeding 350 barrels of
oil per day.
Return CEO Ken Tompson commented
"We're very pleased with the outcome of our initial drilling
program at Rycroft. The 14-27 well came in as expected and
6-34 has significantly de-risked a scalable resource play in the
Charlie Lake dolomitic siltstone,
setting the stage for a future horizontal drilling program using
multi-stage fracture stimulation techniques. We are now in the
position of having an inventory of up to 13 drilling locations
targeting the Braeburn dolomite and 22 horizontal drilling
locations targeting the Charlie
Lake dolomitic siltstone."
Return, through Winslow, has a 100% working interest in the
above wells and its Rycroft core
area.
Neither the TSX Venture Exchange nor its 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.
Reader Advisories
Forward-Looking Statements. This news release contains
forward-looking statements and information. More particularly, this
document contains statements and information concerning the timing
of drilling, pipeline installations and general field operations.
Forward-looking information is frequently characterized by words
such as "anticipate", "plan", "expect", "project", "intend",
"will", "believe", "anticipate", "estimate", "scheduled",
"potential", or other similar words, or statements that certain
events or conditions "may", "should" or "could" occur. Use of
the word "vertical" in describing a wellbore may include wells that
are deviated slightly as opposed to wellbores that are horizontal.
The forward-looking statements and information are based on certain
key expectations and assumptions made by Return, including
expectations and assumptions concerning availability of equipment,
available funds and receipt of required regulatory approval.
Although Return believes that the expectations and assumptions on
which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking
statements because Return can give no assurance that they will
prove to be correct. Since forward-looking statements address
future events and conditions, by their very nature they involve
inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risks. These include, but are not limited to, risks
that required regulatory approvals are not obtained and that
specific equipment is delayed or not available. The reader is
cautioned that assumptions used in the preparation of such
information, although considered reasonable by the Company at the
time of preparation, may prove to be incorrect and readers are
cautioned not to place undue reliance on forward-looking
information, which speaks only as of the date hereof. The Company
does not undertake any obligation to release publicly any revisions
to forward-looking information contained herein to reflect events
or circumstances that occur after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required under
applicable securities laws.
BOE Presentation. References herein to "BOE" mean barrels of oil
equivalent derived by converting gas to oil in the ratio of six
thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. BOE
may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1 bbl is based on an energy conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. In addition, given
that the value ratio based on the current price of crude oil as
compared to natural gas is significantly different from the energy
equivalency of 6:1, utilizing a conversion on a 6:1 basis may be
misleading as an indication of value.
SOURCE Return Energy Inc
