Resaca Announces Operations Update
HOUSTON, Sept. 1 /PRNewswire/ — Resaca Exploitation, Inc. (“Resaca” or “the Company”) (LSE AIM: RSOX), an independent oil and gas oil production and development company focused on the Permian Basin of the United States, is pleased to announce details of progress made in the implementation of its development plan for its properties in the Permian Basin of West Texas and New Mexico, progress on potential acquisitions, and other company news. Resaca concluded a successful flotation on the AIM market of the London Stock Exchange on July 17, 2008.
(Logo: http://www.newscom.com/cgi-bin/prnh/20080724/RESACALOGO) Implementation of Development Plan
The following is a summary of Resaca’s progress to date on the implementation of its development plan:
— The Company has signed a multi-well drilling contract to drill infill wells on its Cooper Jal property. The contract is for an initial 10 well program and is renewable at the Company’s option in 5 well increments. Resaca spudded the first well in this program on August 29, 2008. The wells will be drilled on ten acre spacing and each is expected to take approximately 15 days to drill and complete.
— The Company has also initiated a 20+ well workover program on its Cooper Jal, Penwell Complex, and McElroy properties. Permian Basin Well Services, LLC has provided the workover rigs for this program to date.
— Resaca has engaged Avasthi & Associates, Inc., a Houston-based petroleum consulting firm, to perform an in-depth CO2 feasibility study on the Company’s Grand Clearfork Unit. The Company has already held preliminary discussions with a CO2 supplier who could supply CO2 to the field. Subject to the outcome of the feasibility study, Resaca could commence tertiary recovery on the Grand Clearfork Unit significantly earlier than originally projected.
— The Company has commissioned Williamson Petroleum Consultants, Inc. to conduct a field-wide development study of its Iatan Field. The study is expected to be complete by the end of September.
— The Cooper Jal waterflood optimization efforts continue. The Company has completed the thirteen well clean-out program it began earlier this year and plans to re-enter and convert another abandoned well to a make-up water source well to increase the amount of water injected at the property.
The Company is continuing discussions with several parties regarding potential acquisitions of new projects both within and outside the Permian Basin. The Company has conducted additional analysis on several of the properties in question.
Upcoming Announcements and Events
— In mid September, the Company plans to issue a July 1 2008 oil and gas reserve report
— John J. (“Jay”) Lendrum, III, Chief Executive Officer, will present at the oilbarrel.com Conference on September 18, 2008 in London
— J.P. Bryan, Chairman of the Board, will present at RBC Capital Markets’ Oil Conference on October 9, 2008 in London
Commenting on Resaca’s efforts to date, Jay Lendrum, Chief Executive Officer, said:
“We are pleased with our progress to date in the implementation of the development plan we set out at the time of listing on AIM in July 2008. In addition, we are hopeful regarding the prospect of accelerating our CO2 injection programme on the Grand Clearfork Unit, which would be far ahead of the 2011 timeframe we set out originally. Finally, the analysis of the Iatan Field could produce exploitation projects on that property that we had not previously identified.”
“On the acquisition and joint venture front, our discussions to date with prospective sellers and joint venture partners have been productive. We have been presented with several interesting acquisition targets that we are diligently evaluating.”
For further information please contact: Resaca Exploitation, Inc. J.P. Bryan, Chairman +1 713-753-1300 John J. ("Jay") Lendrum, III, Chief Executive Officer +1 713-753-1400 Dennis Hammond, President +1 713-753-1281 Chris Work, Chief Financial Officer +1 713-753-1406 Buchanan Communications (Investor Relations) +44 (0)207466 5000 Ben Willey Catherine Breen Seymour Pierce Limited (Nomad and Joint Broker) +44 (0)207107 8000 Jonathan Wright Matt Thomas RBC Capital Markets (Joint Broker) +44 (0)207 653 4667 Sarah Wharry About Resaca
Resaca is an independent oil and gas development and production company based in Houston, Texas. Resaca is focused on the acquisition and exploitation of long-life oil and gas properties, utilizing a variety of primary, secondary and tertiary recovery techniques. Resaca’s current properties are located in the Permian Basin of West Texas and Southeast New Mexico. Additional information is available at http://www.resacaexploitation.com/.
In accordance with the AIM Rules, the information in this announcement has been reviewed and signed-off by Dennis Hammond, President, who has over 29 years relevant experience within the sector.
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Resaca Exploitation, Inc.
CONTACT: J.P. Bryan, Chairman, +1-713-753-1300, John J. (“Jay”)Lendrum, III, Chief Executive Officer, +1-713-753-1400, Dennis Hammond,President, +1-713-753-1281, Chris Work, Chief Financial Officer,+1-713-753-1406, all of Resaca Exploitation, Inc.; or Ben Willey or CatherineBreen, both of Buchanan Communications, Investor Relations,+44 (0)207466 5000; or Jonathan Wright or Matt Thomas, both of Seymour PierceLimited, Nomad and Joint Broker, +44 (0)207107 8000; or Sarah Wharry of RBCCapital Markets, Joint Broker, +44 (0)207 653 4667, all for ResacaExploitation, Inc.
Web site: http://www.resacaexploitation.com/