Tuesday August 5, 8:30 am ET
On Pace to Achieve Positive Net Income in Fourth Quarter of 2008
HOUSTON, Aug. 5 /PRNewswire-FirstCall/ -- Rock Energy Resources, Inc. (OTC BB: RCKE.OB), an independent domestic oil and natural gas company, today announced that it has successfully recompleted the Pintail #1 well in the Upper Wilcox, located in the Garwood Field in Colorado County, Texas. The well has achieved an initial flow rate of 300 million cubic feet on a 7/64 inch choke with flowing tubing pressure of 1650 psi.
Estimated cash on cash payout of Pintail #1 is an estimated 21 days. The Company has budgeted $2.1 million for Wilcox recompletion activities through year-end. The 2009 budget, providing for all Wilcox drilling activities in South Texas, is $14 million.
On May 20, 2008, Rock Energy reported that it assumed operatorship of the Garwood Field after acquiring certain additional working interests in the Wilcox trend underlying the project. At that time, in-depth technical evaluation of possible well recompletions was implemented by the Company with an objective of identifying recompletion opportunities that might have been overlooked by the previous operator. The Pintail #1 well is the first of three possible wells identified and prioritized for recompletion prior to the end of the year. Up to five additional development locations have also been identified with drilling on these potential sites expected to commence in 2009. As previously announced, proven, probable and possible natural gas reserves in the Garwood project are estimated to exceed 40 billion cubic feet.
Chairman and CEO Rocky Emery noted that production from this first recompletion alone helps to drive the Company "half way to our goal of profitability by the fourth quarter of this year." Continuing, he said, "It should be noted that our success with Pintail #1 is a direct reflection of the outstanding operational and technical expertise of Tom Elliot, Rock Energy's Chief Operating Officer, whose 40-year career has encompassed more than 250 successful recompletions in the Wilcox."
"When coupled with our successful steaming operations on the Orcutt Diatomite field in Central California, anticipated revenue generation from this first Wilcox recompletion should help us to readily achieve the financial objectives outlined in the 2009 and 2010 financial guidance we issued last month, and positive net income in the fourth quarter of 2008," concluded Emery.
About Rock Energy Resources, Inc.
Originally formed in April of 2004 as Rock Energy Partners LP, Rock Energy Resources is a domestic oil and gas company based in Houston, Texas. With its partners, Rock Energy is also engaged in producing oil from the Diatomite and Monterey formations in the Orcutt field and from the Casmalia Diatomite field - both located in Santa Barbara County, California, where there is a known resource base of over 2.5 billion barrels of oil in place.
Natural gas projects include the Company's 100% working interest in the prolific Wilcox trend in the Garwood field - a leasehold of 1,650 acres in Colorado County, Texas with 3P reserves estimated to be 40 billion cubic feet; and a 100% working interest in the Bob West Prospect, a 1,110 acre leasehold in Starr County, Texas with Wilcox discovery potential equal to 250 billion cubic feet.
For more information, please visit www.rockenergyresources.net.
Safe Harbor Forward-Looking Statements
Forward-looking statements made in this release are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein are not a guarantee of future performance. This news release includes forward-looking statements, including with respect to the future level of business for the parties. These statements are necessarily subject to risk and uncertainty. Actual results could differ materially from those projected in these forward-looking statements as a result of certain risk factors that could cause results to differ materially from estimated results. Management cautions that all statements as to future results of operations are necessarily subject to risks, uncertainties and events that may be beyond the control of Rock Energy Resources, Inc., and no assurance can be given that such results will be achieved. Potential risks and uncertainties include, but are not limited to, the ability to procure, properly price, retain and successfully complete projects, and changes in products and competition.
For Further Information, Contact:
RedChip Companies, Inc.
500 Winderley Place, Suite 100
Maitland, FL 32751
(800) 733-2447
Fax: (407) 644-0758
info@redchip.com
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