CALGARY, Aug. 27, 2018 /CNW/ – Return Energy Inc. (“Return” or the “Company“) (TSX-V: “RTN”) today filed with Canadian securities authorities its Second Quarter Condensed Consolidated Interim Financial Statements and Management's Discussion and Analysis for the period ending June 30, 2018. Copies of the filed documents may be obtained through www.sedar.com, Return's website www.returnenergyinc.com or by emailing Return at email@example.com.
Following up on the Company's previously announced Triassic Charlie Lake light oil drilling success at Rycroft, Alberta, the Company is focusing its efforts on the development of its Upper Charlie Lake dolomitic siltstone play. Subsequent to the end of the second quarter, the Company acquired an additional four and one-half sections (2,880 acres) of Crown petroleum and natural gas rights on its Upper Charlie Lake play on which an additional twelve (12) potential horizontal well locations have been identified, bringing the total inventory of potential horizontal wells to thirty-four (34). This same zone is the target of a large-scale horizontal drilling campaign that has been advanced by a senior producer (and several junior producers) over the last four to five years. To date, over 175 Charlie Lake horizontal wells have been drilled by other operators immediately west and north of the Company's Rycroft acreage, with initial production rates (averaged over the first ninety days) as high as 860 barrels of oil per day (1,115 BOE per day) as evidenced by a third-party horizontal well located at 15-36-78-7W6M.
Discussions with landowners are ongoing with respect to the location of a central light oil battery facility and the location of gathering lines to take produced solution gas from the Charlie Lake light oil development to Return's 100% owned Rycroft gas plant. In addition to central battery planning, front-end engineering work has commenced with respect to the handling of produced water that is common to Charlie Lake oil production in the immediate area.
As previously announced, combined production test rates from Return's two 100% owned Charlie Lake vertical wells drilled in the first quarter totaled 170 BOE per day. Production from these wells will be brought on as part of the overall infrastructure development which includes the above mentioned pipelining and water handling.
In addition to the thirty-four (34) horizontal locations identified in the Upper Charlie Lake play, thirteen (13) potential vertical well locations have been identified for the underlying Braeburn member of the Charlie Lake formation.
The Company is currently evaluating options with respect to sourcing funds required to advance the above mentioned development drilling and associated infrastructure program.