Sandhawk deal completed – production increase
Acquisition of Sandhawk has been completed, giving Rocksource increased reserves in the New Ace field and adjacent areas. Drilling of two initial wells in the area adjacent to the existing field will commence during Q4 2006, in order to prove additional reserves in excess of 5 million barrels oil equivalent (boe). Rocksource aims to establish production in excess of 1000 boe/day during 2007.
The Rocksource Group (`Rocksource`) has completed a final agreement with the owners of Sandhawk Energy LLC (`Sandhawk`). As a result Rocksource`s working interest in the New Ace field has more than doubled to 92% within the
boundaries of the existing field, and to 99% in adjacent areas. An update of the total reserves for the New Ace field and adjacent areas will be announced shortly.
The agreement gives Rocksource effective operatorship of the New Ace field in Texas and Rocksource will now enter into a firm rig contract to drill two wells. The objective of these wells and a contingent follow-up drilling program is to prove additional reserves in excess of 5 million barrels oil equivalent (boe) in an area adjacent to the existing field. As a
first step in building the production base, Rocksource aims to establish a production level in excess of 1000 boe/day during 2007. The first well will spud during Q4 2006.
The agreement and the drilling campaign are geared towards strengthening Rocksource`s financial ability to further develop long term success through an EM-based exploration portfolio.
Reference is also made to the stock exchange notices of 26 October 2006.
Oslo, 2 November 2006
Rocksource ASA
Trygve Pedersen - CEO
+47 90 09 77 41
Published: 02.11.2006
Contact Information
Address:
Thormøhlensgate 53 D
Postboks 994 Sentrum
N-5808 Bergen
Norway
| Phone: | +47 05369 |
| From abroad: | +47 21 49 32 69 |
| Fax: | +47 55 36 87 98 |
Per Anders Muri
VP Corporate Communications
Phone: +47 91 11 61 21
per.anders.muri@rocksource.com