The Company has been accumulating land over the last year and is pleased to announce that to date, it has accumulated approximately 100,000 net acres of land prospective for light oil in the Duvernay Shale basin in central Alberta. Although the play remains in its infancy, the characteristics exhibited by it including relatively shallow depth, contiguous net pay, large estimates of total petroleum initially-in-place, light oil phase and the expected ability for productivity and recovery improvements through technology are consistent with Raging River’s strategy for creating per share value.
Raging River expects to drill its first evaluation well into this play in the fourth quarter of this year with up to six additional evaluation wells drilled in 2018.
Favourable field conditions permitted drilling activity to resume on May 20th, with four drilling rigs currently active. To date in the second quarter of 2017, we have drilled 25 wells and have completed 40 wells, inclusive of 28 drilled but uncompleted wells from the first quarter of 2017.
The Coleville gas plant in west central Saskatchewan that was shut-in at the end of April 2017 for 45 to 60 days, has had a nominal impact to our sales gas production. Due to strong operational results and favourable field conditions, we remain confident that our previously guided second quarter average production of 22,000 boe/d will be attained.
Effective immediately, Bruce Beynon who is currently Raging River’s Executive Vice President has been promoted to the role of President and will be appointed to the Board of Directors of the Company. Mr. Beynon has been with the Company since its inception in 2012 and has been instrumental in the strategic evolution of the Company.
Neil Roszell, the current President and Chief Executive Officer of Raging River will continue as Chief Executive Officer as well as assuming the role of Executive Chairman.
Additional corporate information can be found in our corporate presentation on our website at www.rrexploration.com.