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Rolling Thunder Provides Operational Update
09:29 EDT Wednesday, August 23, 2006
CALGARY, Aug. 23 /CNW/ - Rolling Thunder Exploration Ltd. ("Rolling Thunder" or the "Corporation") (TSX-V: ROL.A, ROL.B; OTO: RTHXF) announces significant oil flow rates at Teepee Creek and provides update on other operational activity.
Teepee Creek
This summer marked a return to drilling for Rolling Thunder. The Corporation has significantly extended its light oil discovery at Teepee Creek, testing significant volumes from two separate zones in recent wells, has built a sizeable land base (ownership or access to 18 gross sections of land with an average working interest of 65%) and has recently finished a 164 square kilometer 3D seismic survey. The current inventory of development and step-out wells in Teepee Creek is in excess of eight locations. Rolling Thunder has also cased an exploration location at 06-18-74-4W6 at Teepee North.
The 06-10-74-04W6 (50%) well tested at 1,500 barrels of 37.5* API oil per day with a steady gas rate of 1,000 mcf/d on a 19.5 mm choke at a flowing tubing head pressure of about 2,000 Kpa, with no water. The well was flowed for a 36 hour period.
The 16-34-73-04W6 (100%) well tested at 180 barrels of 25* API oil per day with a steady gas rate of 1,600 mcf/d at a flowing tubing head pressure of 10,200 Kpa on a 6.35 mm choke. The well was flowed for a 67 hour period. The well also produced approximately 45 barrels of water per day.
The 03-11-74-04W6 (60%) well tested at various rates, stabilizing at approximately 500 mcf/d with about 25 barrels of oil per day and 45 barrels of water per day.
All three wells will be tied-in to the Corporation's new 1,000 barrel per day facility at Teepee Creek. Initially, the wells will have a four month, 15,000 bbl test period and then may be subject to an allowable rate until good production practice is obtained. The Corporation currently has good production practice on its initial well at 06-03-74-04W6. Rolling Thunder expects to have the Teepee Creek battery on stream by the end of August. The 14-03 well (which flowed 1,494 barrels of oil over a 23.5 hour test period inApril 2006) and the 06-03 well will be tied in at that time. The 06-10, 16-34 and 03-11 wells will follow.
Production from Teepee Creek is expected to ramp up from the current 50 boe/d to about 600 boe/d, net to Rolling Thunder as the wells are tied-in and good production practice is obtained.
Other Activity
In addition to the activity at Teepee Creek, the Corporation is currently testing two wells at Gordondale (one new drill and one up-hole recompletion) and preparing to spud a new well at McLeod offsetting our prolific 06-18 well. A second success at McLeod will help build the critical mass needed to resolve the area's curtailment issues. At Ensign, the Corporation is in consultation with the EUB regarding how Rolling Thunder's half section spacing unit application fits into the EUB's recent two well per section holding regulations. We are optimistic regarding the EUB outcome. Rolling Thunder has also submitted an application for down-spacing in the McLeod area, potentially doubling drilling opportunities there as well.
Production for the past few months has been below expectations due to additional curtailments at McLeod and due to operational issues at Gordondale (the 14-22 producing well was shut-in while the Corporation re-drilled a twin for potential production from the up-hole Gething formation). Average sales production for the months of May and June was 291 boe/d. Total production capacity remains close to 400 boe/d and the Corporation is confident in attaining its exit target of 900 boe/d.
The first half of 2006 has been a busy and successful period for Rolling Thunder. The Corporation anticipates an active second half as we tie-in earlier successes and follow up with additional drilling.
Natural Gas volumes that have been converted to barrels of oil equivalent (BOEs) have been converted on the basis of six thousand cubic feet (mcf) to one barrel (bbl). BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of six mcf to one bbl is based on an energy equivalency method and does not necessarily represent value equivalency at the wellhead.
Certain information contained herein constitutes forward-looking information under applicable securities laws. All statements, other than statements of historical fact, which address activities, events or developments that we expect or anticipate may or will occur in the future, are forward-looking information. Forward-looking information typically contains statements with words such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "potential", "targeting", "intend", "could", "might", "should", "believe" or similar words suggesting future outcomes or outlook.
The following discussion is intended to identify certain factors, although not necessarily all factors, which could cause future outcomes to differ materially from those set forth in the forward-looking information. The risks and uncertainties that may affect the operations, performance, development and results of Rolling Thunder's businesses include, but are not limited to, the following factors: volatility of oil and gas prices, commodity supply and demand, fluctuations in currency and interest rates, ultimate recoverability of reserves, timing and costs of drilling activities and pipeline construction, new regulations and legislation and the availability of capital. The reader is cautioned that these factors and risks are difficult to predict and that the assumptions used in the preparation of such information, although considered reasonably accurate by Rolling Thunder at the time of preparation, may prove to be incorrect or may not occur. Accordingly, readers are cautioned that the actual results achieved will vary from the information provided herein and the variations may be material. Readers are also cautioned that the foregoing list of factors and risks is not exhaustive. Additional information on these and other risks, uncertainties and factors that could affect Rolling Thunder's operations or financial results are included in our filings with the securities commissions or similar authorities in each of the provinces ofCanada , as may be updated from time to time. There is no representation by Rolling Thunder that actual results achieved will be the same in whole or in part as those set out in the forward-looking information. Furthermore, the forward-looking statements contained herein are made as of the date hereof, and Rolling Thunder does not undertake any obligation to update publicly or to revise any forward-looking information, whether as a result of new information, future events or otherwise. Any forward-looking information contained herein is expressly qualified by this cautionary statement.
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The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
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For further information: To find out more about Rolling Thunder Exploration Ltd. (TSX-V: ROL.A, ROL.B; OTO: RTHXF), visit our website at www.rollingthunderexploration.com or contact: Peter Bolton, President & Chief Executive Officer, (403) 532-6221, peterb@rollingthunderexploration.com; Kamelia Wong, Chief Financial Officer, (403) 532-6223, kameliaw@rollingthunderexploration.com
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