ROK Resources increases production in Glen Ewen, Saskatchewan

ROK Resources Inc. began a well repair and reactivation program to increase production and improve environmental protection systems in its recently acquired Glen Ewen properties in Saskatchewan. The company produced about 170 boe/d in July, and following workovers on two wells, production increased to about 210 boe/d for the first 14 days in August.

Following the Glen Ewen asset acquisition, ROK now holds 6,072 net acres within the Glen Ewen and Florence area of southeast Saskatchewan. The land lies within a larger area of historical production for both the Midale and Frobisher beds. The new ROK acreage position allows for the drilling of up to 12 1-mile long fractured horizontal wells targeting the Midale beds and six half-mile long horizontal wells targeting the Frobisher beds. As oil prices recover, six of these 18 locations are expected to be drilled in order to assess reserves and to allow for the strategic development of production infrastructure.

Recent application of hydraulic fracture stimulation within Glen Ewen has created an opportunity to apply similar completion techniques to the Midale beds throughout Glen Ewen and Florence project areas. Although the Midale formation has historically been produced within the Florence area, the interbedded nature of the rock suggests that better results would be achieved using horizontal fracturing technology. In addition to horizontal fracture exploitation of the Midale formation, the company plans to target the Halbrite and Huntoon cycles of the Frobisher beds. The Frobisher shoaling events create high permeability reservoirs which can provide high initial productive rates and favorable short-term economics with payouts in less than a year in many cases.

With an investment in 2 miles of gathering pipelines, the company expects to have sufficient capacity to process emulsion, dispose water, and conserve gas for the planned development of Glen Ewen and Florence land bases. The recently acquired 9-23-2-1W2 facility is currently underutilized and capable of processing 4,500 bbl of fluid/day. Conversion of an additional well to saltwater disposal should further expand capacity of this facility. Historical capacity was 6,000 bbl fluid and 1,000 bbl sales oil. This existing infrastructure creates savings compared to greenfield construction of infrastructure.