Infrastructure and production at Shoats Creek

RNS Number : 7177N

Red Rock Resources plc

02 February 2016

 

Red Rock Resources Plc

Completion of Infrastructure and Start of Production at Shoats Creek

2 February 2016

Red Rock Resources Plc ("Red Rock" or the "Company"), the natural resource investment and development company, has been informed as follows by the operator (Northcote Energy Limited) of the completion of infrastructure upgrades at the Shoats Creek Field in Louisiana and the start of production operations at the LM20 well in which Red Rock has a 20% working interest.

Further to the announcements of 20 January 2016 and 27 November 2015, infrastructure work now completed at Shoats Creek includes:

·      Installation of 5,400 barrel oil and water storage tanks with room for incremental additions as production grows in the course of drilling additional wells

·      Installation of high and low pressure separators, heating, flare stacks and other necessary production equipment

·      Installation of associated pump and pipeline work

At the LM#20 well, production operations are now commencing and the production rate will be reported in due course after rates have stabilised.

Red Rock Chairman Andrew Bell states: "The news from the operator that production is now beginning represents a milestone for Red Rock as we can now become for the first time an oil producer, and from a low cost onshore well. We look forward now to the drilling of LM21 and LM22 to increase production from the field. This achievement brings what we hope will be a growing revenue stream to Red Rock as a more diversified natural resource Company."

Red Rock has a 20% Working Interest and a 14.4% Net Revenue Interest in the LM20 well and in the planned LM21 and LM22 wells.

For Further Information Contact:

Andrew Bell 0207 747 9990                                                       Chairman Red Rock Resources Plc

Scott Kaintz 0207 747 9990                                                        Executive Director Red Rock Resources Plc

Roland Cornish/Rosalind Hill Abrahams 0207 628 3396          NOMAD Beaumont Cornish Limited

Jason Robertson 0129 351 7744                                                 Broker Dowgate Capital Stockbrokers Ltd.

Christian Pickel 0203 128 8208                                                  Media Relations MHP Communications

 

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