Relentless Resources Ltd. ("Relentless" or the "Company") (TSX VENTURE:RRL) announces that it has issued and filed on SEDAR its March 31, 2017 unaudited condensed interim financial statements and related management's discussion and analysis ("MD&A"). Additional information about Relentless is available on SEDAR at www.sedar.com or on the Company's website at www.relentless-resources.com.
Relentless averaged 272 boed (58% oil and liquids) in Q1 2017, up 17% from the same period last year, and up 42% from the previous quarter. Royalties payable increased to $3.49/boe due to higher commodity pricing on variable crown royalties. Operating costs were up 8% to $14.10/boe compared to the previous quarter. General and administration costs ("G&A") were down slightly compared to the previous quarters at $4.82/boe.
On May 25, 2017, the Company renewed its revolving demand operating loan facility (the "Facility"), with the principal amount at $3,000,000. The Facility is available until May 31, 2018, at which time it may be extended, at the lender's option. Interest payable on amounts drawn under the Facility is at the lender's prime rate plus 2.0 percent. The Facility is collateralized by a general security agreement and a first ranking charge on all lands of the Company.
The two new Heathdale oil wells drilled and completed in Q4 2016 continue to track with the Company's expectations.
The 02/5-7-27-9 horizontal well is producing approximately 70 boed (80% oil). The 6-12-27-10 W4 vertical step-out well is producing approximately 12 boed (100% oil) after a recent sand clean-out and pump change.
The Heathdale oil property has been delineated with 5 vertical wells and developed with 4 horizontal wells. The Company believes that there is a significant medium gravity oil reserve captured at Heathdale that will be further developed once the oil price recovers. All the necessary facilities are in place to ramp production when feasible.
Relentless' go forward capital program depends on the price of oil and natural gas and the ability to finance.
Without further increases to realized pricing, the Company will defer any drilling projects to conserve reserves and cash flow for future benefit. Relentless continues to explore various opportunities to grow and enhance shareholder value.
Relentless is a unique low G&A, high insider ownership and conforming junior oil and gas company with low risk, high working interest medium gravity oil opportunities at Heathdale. The Company's management and directors once again thank you for your patience and continued support.
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, Canada. Relentless's common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless's primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.
SOURCE: Relentless Resources Ltd.
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