November 13th, 2023
CALGARY, AB - Resolute Resources Ltd. (TSXV:RRL) (“Resolute Resources”, “Company”, “our” or “we”)
RESOLUTERESLTD HZ ANTHONY 7-24-83-24W5
The RESOLUTERESLTD HZ ANTHONY 7-24-83-24W5 (“Shoreline”, “7-24”) horizontal multilateral well was drilled with six lateral legs for a total length of approximately 8,500 meters. During drilling, many thousands of meters of oil saturated rock with good gas response were observed. In addition, medium brown oil staining and clean sands were consistently seen on the shaker. Drill cutting analysis from the Shoreline well confirmed the florescence and oil cut analysis observed from drill cutting data from offset vertical wells in the area. This appears to correlate well with deeper Montney oil production and Gething swab tests (25 – 35 API oil).
The Shoreline well was completed on October 9th, 2023 and initially flowed back drilling fluid as expected. It was originally anticipated that the well would clean up to a higher oil cut during the flow back period but an unexpected change to higher water cuts were experienced. Potential downhole casing integrity was investigated however no cement bond issues were found. Subsequently, the company believes, based on drill data, that two of the six lateral legs may have intersected an open fracture which could be the sourcing of high-water volumes from another formation.
The Shoreline well has been suspended at this time. Our technical staff continues to assess all available data and believes the high-volume water source can potentially be mitigated by shutting off one or more of the lateral legs via workover operations thereby allowing native fluids from the targeted Gething formation to be properly tested from the remaining lateral legs in the well. Management remains optimistic about the potential productivity of the Gething formation over our project area. Further updates on developments related to the Shoreline well will be provided at a later date.
RESOLUTERESLTD HZ ANTHONY 11-24-83-24
The RESOLUTERESLTD HZ ANTHONY 11-24-83-24W5 (“Channel”,”11-24″) horizontal multilateral well is designed to target the Gething Channel reservoir. The well was originally scheduled to spud in November, however, our operating team delayed the drilling of this well to provide sufficient time to better understand the Shoreline operational issues. Due to rig availability, this well is now expected to spud in Q1 of 2024.
Since the acquisition and interpretation of 3D seismic, the company has also completed 3 rd party investigation work that independently confirms the presence of the channel. Based on our seismic and geological interpretation the channel appears to contain up to 20m of reservoir with porosity improving from the well penetration found in the 15-19-83-23W5 well. The 15-19 well showed porosity of between 21-24% and 11.5m of pay.
Alex Lindsay, CEO – “Management is focused on the drilling of the Channel location. The Channel location has always been the larger geologic target. Significant thicker pay with higher porosity. What we learned from the Shoreline well has made us even more excited for the Channel drill.”
For investors or stakeholders with questions related to this update, please do not hesitate to reach out to the following individuals:
About Resolute Resources Ltd.
Resolute Resources is an energy corporation trading on the TSXV under the symbol RRL. Resolute has projects in Northwest Alberta and Northeast British Columbia, where it is exploring shallow cretaceous sandstone reservoirs that can be exploited with Multi-Lateral Open Hole wells. Resolute Resources has accumulated just under 35,000 acres in its GFD light oil project in Northwest Alberta and approximately 10,000 acres at its Evie project in Northeast BC. Resolute Resources is pursuing projects that are high in environmental social and governance metrics, that result in lower emission oil and low water use due to no hydraulic fracturing, but that provide high economic returns.
Cautionary Statement Concerning Forward-Looking Statements
This news release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward looking information includes, but is not limited to: (i) the plan to provide a detailed update on the remediation efforts related to the 7-24 well; and (ii) the Company’s drilling program including the ability of the Company to expand its drilling activities, the plan to drill a second well in the Gething Channel play in Q1 2024 subject to equipment and rig availability, the prospectivity of the channel; the ability of the Company to remediate the 7-24 well and drill the 11-24 well and generate economic production.. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: failure to obtain regulatory approvals, general business, economic, competitive, political and social uncertainties, securities market uncertainty and unpredictability and risks of the oil and gas industry. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.