Relentless Resources Ltd. ("Relentless" or "the Company") (TSX VENTURE:RRL) announces that it has drilled and completed the 100/6-12-27-10 W4 ("6-12 well") vertical and 102/5-7-27-9W4 ("02/5-7 well") horizontal wells at Heathdale, Alberta.
The 02/5-7 horizontal oil well was drilled in eight days to a total measured depth of 2,375m. The well was perforated over 23 intervals and fracture stimulated using a coil tubing straddle packer assembly. The well was placed on stream in mid-January with a spud to on-stream timeline of 35 days inclusive of the holidays. The total on-stream cost of the 02/5-7 well was $1,170,000 as a one-off single well operation.
The 02/5-7 well has been produced continually with minimal downtime and a high fluid level. The pumping equipment has been operated at between 4 and 5 strokes per minute producing, based on field estimates, 110 barrels/d total fluid with a 25% water-cut consistent with the remainder of the pool. Gas rates have been stable at 175 mscf/d. Overall, the 02/5-7 well has averaged 100 boe/d of which 80% is oil for the first 60 days. The well continues to produce at 100 boe/d with a fluid level near surface.
The 6-12 vertical well was drilled approximately 1.2 km west of the known Heathdale Glauconitic oil pool and encountered approximately 5m of Glauconitic oil reservoir at virgin pressure. The well is currently producing at approximately 3 barrels/d and serves as a control point for future horizontal drilling. This is the fifth section of land in which Relentless has confirmed the presence of this Glauconite oil deposit. The on-stream cost of this well was $425,000 equipped as a single well battery.
President, Ron Peshke states:
"Both new wells are significant achievements in the development of the Heathdale Glauconite oil pool. The 02/5-7 well responded to increased fracture density and optimized well design giving a lower all-in capital cost. The 6-12 vertical well pushed the pool another 1 mile west. Heathdale is fully equipped to be ramped up once oil price recovers as all pipelines and treating facilities are in place."
The Heathdale Glauconite oil pool has been successfully delineated with 5 vertical wells and developed with 4 horizontal multistage fractured wells. For further information on the development upside of this pool please refer to the company's corporate presentation at www.relentless-resources.com.
Current corporate production is estimated at 275 boe/d of which 60% is oil and liquids. 50 boe/d is currently shut in as a result of a third party compressor outage and is anticipated to return to production before month end.
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, Canada. Relentless' 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.
SOURCE: Relentless Resources Ltd.
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