CALGARY, ALBERTA–(Marketwired – May 19, 2015) – Relentless Resources Ltd. (“Relentless” or “the Company”) (TSX VENTURE:RRL) is pleased to report its financial and operating results for the three months ended March 31, 2015. Selected financial and operational information is set out below and should be read in conjunction with the Company’s March 31, 2015 interim financial statements and the related management’s discussion and analysis, which are available for review, together with additional information about Relentless, on SEDAR at www.sedar.com or on the Company`s website at www.relentless-resources.com.
In Q1 2015, Relentless drilled, completed and tied in two new Glauconite horizontal wells (100% working interest) at Heathdale, Alberta. The 14-8 and 7-8-27-9 W4 wells were brought on-stream in March 2015 through a mutiwell oil treating battery. The two wells have averaged a combined rate of 185 boe/d (80% oil) total over 44 days of production and are currently producing at approximately 140 boe/d combined. The Heathdale 9-7-27-9 W4 multiwell battery is now fully operational. Approximately $3.0 million dollars was incurred drilling, completing, equipping the two horizontal wells and building the multiwell battery in winter conditions in Q1 2015.
Heathdale production was restricted in Q1 2015 due to the facility construction work and spring access conditions. As of May 1, 2015 all three Heathdale horizontal wells were producing.
Based on field estimates, Heathdale is currently producing 200 bbl/d of oil and 420 mcf/d of gas at 100% working interest. Two additional horizontal wells are currently licensed and ready to be drilled. Relentless has greater than 25 future Glauconite locations on working interest lands.
Operational and Financial Highlights
Relentless’ current corporate production, with the three Heathdale wells producing, is approximately 430 boe/d (60% oil).
At March 31, 2015, net debt was $2.64 million. Current net debt is $2.55 million on a newly expanded credit facility of $4.0 million.
Even though commodity prices were low in Q1 2015, Relentless posted a number of positive achievements:
- Daily production volumes increased by 263% to 235 boe/d from 65 boe/d in the same period last year.
- Oil and gas revenues increased by 81% to $632,026 despite a 50% decrease in realized commodity prices between Q1 2015 and Q1 2014.
- Operating expenses decreased 18% to $19.98/boe compared to Q1 2014.
- General and administration expense decreased 60% to $5.87/boe compared to Q1 2014.
About Relentless Resources Ltd.
Relentless is a Calgary based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta. Relentless’ common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless’ primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.
Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding the volumes and estimated value of the Company’s proved and probable reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Company are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management’s control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. 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. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
These assumptions and statements necessarily involve known and unknown risks and uncertainties inherent in the oil and gas industry such as geological, technical, drilling and processing problems and other risks and uncertainties, as well as the business risks discussed in Management’s Discussion and Analysis of the Company under the heading “Business Risks”. The Company does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.
Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel of oil) 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 from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
Neither 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.
Relentless Resources Ltd.
Dan Wilson, CEO
(403) 532 – 4466 ext. 227
Mobile: (403) 874 – 9862
(587) 955-9668 (FAX)
Relentless Resources Ltd.
Ron Peshke, President
(403) 532 – 4466 ext. 223
Mobile: (403) 852-3403
(587) 955-9668 (FAX)