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Red Mountain Resources Updates Bone Spring, Brushy Canyon, and Central Kansas Operations
Company announces status report of ongoing operations
DALLAS, TX, June 6, 2014 (GLOBE NEWSWIRE) -- Red Mountain Resources, Inc. ("RMR","Red Mountain", the "Company" or "We") (OTC QB:RDMP), a growth-oriented energy company engaged in the acquisition, development, and exploration of oil and natural gas properties, announced today a status report on its ongoing operations.
TURKEY TRACK AREA (Eddy County, NM)
RMR owns non-operated interest in the Turkey Track Area through its majority owned subsidiary, Cross Border Resources, Inc. ("Cross Border"). The operator, Mewbourne Oil Company, is actively drilling horizontal 1st and 2nd Bone Spring wells. The Zircon 12/7 GF Federal Com 1H well was completed in the 2nd Bone Spring in May 2014. The well achieved a maximum 24-hour rate of 1,188 BOE/d (89% oil) and a 10-day average rate of 1,028 Boe/d (87% oil). RMR owns an approximately 16% working interest and 13% net revenue interest in the well.
The Zircon 2 B1EH State 2H well was spudded in May 2014 and is currently being drilled. This will be RMR's first 1st Bone Spring well in the area. RMR owns an approximately 13% working interest and 9% net revenue interest in the well. Once the Zircon 2 B1EH State 2H well is on line, RMR will have 20 gross (2.8 net) additional potential 1st and 2nd Bone Spring locations with a working interest ranging from 3% to 16% and net revenue interest ranging from 2% to 13%.
Alan Barksdale, President and CEO of RMR, stated, "The Bone Spring formation of the Delaware Basin provides superior economics and robust production. Our mineral and leasehold position in the Delaware Basin presents a unique opportunity to participate with industry-leading partners as an operator and non-operator."
RMR owns leases on 9,868 gross and net acres in Central Kansas. The Company recently completed a seismic shoot in the area and processed the data. The Company's initial plans include a seven-well drilling program scheduled to begin in July 2014. The primary objectives in these wells are the Arbuckle, Basal Penn and Reagan reservoirs with secondary objectives Lansing/Kansas City reservoirs. RMR owns a 100% working interest and 80% or greater net revenue interest in this acreage.
Mr. Barksdale added, "Central Kansas provides RMR an opportunity to demonstrate our technical capabilities in conventional oil plays. Our geologist has defined significant drilling potential on our acreage, and the initial seven-well program is the first step in growing our Kansas assets."
MADERA AREA (Lea County, NM)
RMR intends to commence the completion of its eighth well (fourth horizontal) in the Madera Area, the Madera 25 Federal 2H, in late June. This well was drilled to a total measured depth of 15,827 feet, including a true vertical depth of 9,000 feet and a lateral length of 6,826 feet. RMR owns an approximately 30.1% working interest and 23.5% net revenue interest in the well.
Mr. Barksdale concluded, "Our diligent technical staff continues to deliver prospect inventory across our 310,000+ net acres. We will continue to focus on conventional reservoirs and allocate our capital across horizontal and vertical targets."
About Red Mountain Resources, Inc.
CONTACT: Red Mountain Resources, Inc.2515 McKinney Ave., Suite 900 Dallas, Texas 75201 Attention: Alan Barksdale, Chief Executive Officer Telephone No.: (214) 871-0400Source: Red Mountain Resources, Inc.