red rock energy inc (RRK) Snapshot

Red Rock Energy Inc. announced that it has executed a Letter of Intent with Alberta Oil and Gas Production Company, pursuant to which the parties shall form a joint venture for the purpose of completing up to six wells as identified by Red Rock and located in north eastern British Columbia. The completion of this joint venture remains subject to the negotiation and execution of a definitive agreement between the parties, receipt of approval from Privco's financial backers, completion of due diligence procedures by Privco, and the obtaining of any required corporate and regulatory approvals by Red Rock. It is the intention of the parties that Red Rock will remain operator of any projects initiated, and payment terms will include reimbursing Red Rock for expenses associated with prospect development, prospect acquisitions and provision of technical services. Relative to each of the prospects, Privco shall pay 100% of all equipping and tie-in costs to earn an 80% interest in that prospect.

Red Rock Energy Inc. said it has appointed Probity Capital Advisors Inc. to evaluate strategic alternatives for its uranium exploration interests in Northern Saskatchewan which may include, but are not limited to: a private placement or other offering of equity or debt, the sale of a material portion or all of the uranium exploration assets of the company; or a farm-out or joint venture focused strictly on those assets.

Red Rock Energy Inc. announced that it has completed the initial phases of its three-well workover program in North Eastern British Columbia. Conducted through its wholly owned subsidiary Red Rock Projects Inc., this program is designed to test two oil bearing formations. Operations commenced in early January 2012 with activity on the planned well recompletions and production test. Initial results from the well that was production tested are encouraging. The well swabbed 31 degrees API oil for a period of five consecutive days producing at a stabilized rate of 48 bopd and steady water cut of 50%. Currently the well has been shut-in for pressure build-up and production options are being evaluated for a nearby tie-in. This well has been designated as a discovery well by the British Columbia Oil and Gas commission which entitles it to a royalty holiday for 3 years. Well data from wells in the area indicates that this oil pool has the potential for multiple drilling locations with significantly thicker oil pay on additional lands now controlled by Red Rock. Additionally Red Rock's technical team continues to evaluate the potential of utilizing horizontal drilling applications to maximize oil recovery from the tested formation and the potential of secondary targets in the region.