CALGARY, ALBERTA–(Marketwired – Oct. 6, 2014) – Rock Energy Inc. (“Rock“) (TSX:RE) is pleased to announce that effective October 2, 2014, Mr. Frank Walsh has been appointed to the Board of Directors of Rock Energy.
Board Appointment
Mr. Walsh has been working in the oil and gas industry since 1978, and is currently serving as the Chief Operating Officer at Questerre Energy Corporation. Prior to that Mr. Walsh co-founded Huron Energy (2004), where he served as the Vice-President of Engineering and Production until the company was sold to Tourmaline Oil in late 2012. Mr. Walsh co-founded and served as the Vice-President of Engineering and Production for Rubicon Energy from 1997 to 2003. Prior to Rubicon, Mr. Walsh was the VP of Production and Engineering at Jordan Petroleum from 1990 to 1997.
Mr. Walsh holds a Bachelor Degree in Engineering from the Technical University of Nova Scotia and is a member of APEGA, as well as an MBA from Queens University. He is also a member of the Institute of Corporate Directors, and is currently enrolled in their Director’s Education Program.
The Board of Directors at Rock looks forward to Frank’s contribution as he brings a wealth of engineering, operations and leadership experience.
Operations Update
During the third quarter of 2014 the Company’s operations were adversely impacted by very wet weather in southwestern Saskatchewan. Despite this delay to drilling and construction, the Company was still able to complete the drilling of 30 wells (26 wells cased as oil wells and 4 dry and abandoned wells), and to complete the construction of the Mantario production facility during the quarter. At the present time Rock has two drilling rigs running (one in Mantario and one in Onward) to catch up with the annual drilling program, and does not anticipate any issues in executing its capital spending plans during the remainder of the year.
At Onward the Company has drilled a total of 34 horizontal Viking wells into the play to date, of which 24 are on production yielding approximately 600 bopd. The remaining 10 wells are currently being completed, flowing back after fracture stimulation and being brought on production. Rock plans to drill additional 10-15 Viking horizontal wells in Onward by year end.
At Mantario the Company is completing the infill drilling program and injector conversions. Water injection is expected to commence by the end of October, and polymer injection is on schedule for Q1 2015.
Quarterly production for the three months ended September 30, 2014 was approximately 4,700 boe/d. As forecasted, the quarterly production was impacted by infill drilling and well conversions associated with the development of the EOR project at Mantario. The Company maintains its current production guidance of 4,900 – 5,100 boe/d average for 2014.
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Advisory Regarding Forward-Looking Information and Statements
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words “will”, “expects”, “believe”, “plans”, “potential” and similar expressions are intended to identify forward-looking statements or information. More particularly and without limitation, this press release contains forward looking statements and information concerning: capital spending plans for the remainder of 2014; plans at Onward to complete and bring wells on production and to drill an additional Viking horizontal well; anticipated in-service dates for the Mantario water/chemical flood program; and forecast average production for 2014.
The forward-looking statements and information in this press release are based on certain key expectations and assumptions made by Rock, including prevailing commodity prices and exchange rates; applicable royalty rates and tax laws; future well production rates; reserve and resource volumes; the performance of existing wells; the success obtained in drilling new wells; the sufficiency of budgeted capital expenditures in carrying out planned activities; the availability and cost of labour and services; and the receipt, in a timely manner, of regulatory and other required approvals. Although Rock believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information because Rock can give no assurance that they will prove to be correct. There is no certainty that Rock will achieve commercially viable production from its undeveloped lands and prospects.
Since forward-looking statements and information 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, the risks associated with the oil and natural gas industry in general, such as: operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to reserves, production, costs and expenses; health, safety and environmental risks; commodity price and exchange rate fluctuations; marketing and transportation of petroleum and natural gas and loss of markets; environmental risks; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; stock market volatility; and changes in legislation, including but not limited to tax laws, royalty rates and environmental regulations.
Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the operations or financial results of Rock are included in reports on file with applicable securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and Rock undertakes no obligation to update publicly or revise any forward looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
Rock has adopted the standard of 6 Mcf:1boe when converting natural gas to boes. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different than the energy equivalency of the 6:1 conversion ratio, utilizing the 6:1 conversion ratio may be misleading as an indication of value.
Rock Energy Inc.
Allen J. Bey
President and Chief Executive Officer
403.218.4380
Rock Energy Inc.
Todd Hirtle
Vice President, Finance and Chief Financial Officer
403.218.4380
www.rockenergy.ca
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