Red Rock Resources sees production begin at Shoats Creek

Red Rock Resources posted an update over its Shoats Creek Field in Beauregard Parish, Louisiana on Friday, saying it has been advised by the operator that gas production has begun from the Lutcher Moore 20 well.

The AIM-traded firm said a 600 metre gas line has now been installed which enables oil and gas to be produced from wells at Shoats Creek, including LM 20.

Revised production rates from LM20 will be reported shortly, once they have been determined, the board said.

Gas sales to Enerfin Field Services, a subsidiary of Enerfin Resources Company, will start at the end of the second week of October with first cash flow from gas sales expected in November 2016

Red Rock has a 20.00% working interest and 14.4% net revenue interest in LM20.

“We are pleased to see that the new management at our partners Mayan Energy Ltd remains committed to the development of the Shoats Creek field and is already showing some results from its initiatives there. We look forward to working with them,” said chairman Andrew Bell.

“With gas prices beginning to reflect the recovery in the oil price and trading at over $3 per Mcf, we look forward to strengthening revenues from LM20 and a rapid progression of the other wells in the field, including LM21 for which we have pre-paid $148,250 as our share of funding.”