Red Rock working through Shoats Creek delays

Mineral exploration and production company Red Rock Resources updated the market on its programme at the Shoats Creek Field in Louisiana on Wednesday, including the identification of a low-cost recompletion opportunity at the LM19 well.

The AIM-traded firm reiterated that there have been development delays since production began earlier this year, and the original spud date for the LM21 was not met.

However, the investor group has been quick to assess and seize the new opportunity at LM19, Red Rock’s board said.

“As the operator gains experience, we expect to improve operational effectiveness while retaining this flexibility and entrepreneurial drive,” commented chairman Andrew Bell.

Bell said the LM19 recompletion is a low cost and low risk attempt to exploit established Frio pay and add inexpensive and meaningful production to the project.

“We look forward to the results of this effort and to updating the market on quarterly production and the spudding of LM21.

“The 2016 work programme at Shoats Creek is focussed on driving production growth by taking advantage of current low drilling and development costs, and with improved oil prices this should flow through directly to the company’s bottom line,” Bell explained.