CALGARY,
AB, Sept. 11, 2023 /CNW/ - (TSX: RBY)
- Rubellite Energy Inc. ("Rubellite" or the "Company"),
a pure play Clearwater oil
exploration and development company, is pleased to provide an
operations update and advises that the Company will be presenting
at the Peters & Co. Limited 2023 Energy Conference on Tuesday,
September 12, 2023, at 3:00 PM ET
(1:00 PM MT). An updated investor presentation has been
posted to Rubellite's website at www.rubelliteenergy.com.
OPERATIONS UPDATE
At Figure Lake, a total of five (5.0 net) multi-lateral
horizontal wells have been rig released during the third quarter to
date on the new pad located at 15-24-63-18W4 (the "15-24 Pad"),
with a total of eight (8.0 net) wells planned. The first well on
the 15-24 Pad had an IP30 of 189 bbl/d (previously reported IP19 of
203 bbl/d). The second well on the 15-24 Pad had an IP30 of
225 bbl/d. The third well on the 15-24 Pad fully recovered its
oil-based mud load fluid ("OBM"), started its IP30 period on
August 19th and has
recorded an IP18 of 287 bbl/d. The fourth well on the 15-24 Pad
fully recovered its OBM, started its IP30 period on September 4th and is performing in
line with the first three 15-24 Pad wells. All of the 15-24 Pad
wells on sales production to date have early performance that is
significantly outperforming the Figure Lake type
curve(1) IP30 of 116 bbl/d. The fifth well on the
15-24 Pad was rig released on September
5th and is currently recovering OBM. Water
production to date from the wells on the 15-24 Pad has averaged
approximately 5% of total fluid production, compared with an
average to date at Figure Lake of approximately 22%.
Given the infill drilling characterization of development in
this central portion of the Figure Lake area, Rubellite intends to
maintain continuous drilling operations on six to eight well pads
for the remainder of 2023 to minimize rig moves and facility
builds, and optimize the re-use of oil-based mud, thereby reducing
costs and improving capital efficiencies.
Rubellite has contracted a second rig to start-up in the fourth
quarter to drill a minimum of two (2.0 net) wells and up to three
(3.0 net) wells to accelerate evaluation of the Buffalo Lake Metis
Settlement lands while maintaining the ongoing infill drilling
program in the off-Settlement lands at Figure Lake. Up to 16 (16.0
net) multi-lateral horizontal wells are expected to be drilled at
Figure Lake in the second half of 2023 (unchanged from previous
guidance) for a full year 2023 total of 25 - 26 (25.0 -
26.0 net) wells, as the property continues to be the Company's
primary focus of investment and development.
Production for the last two weeks of August averaged
approximately 3,285 bbl/d of conventional heavy oil, based on
field estimates and before inventory adjustments, up 15% from the
2,844 bbl/d reported for the second quarter of 2023, aided by
the strong performance of the 15-24 Pad wells. The Company remains
on track to achieve its 2023 annual average sales production
guidance of 2,900 to 3,100 bbl/d with no changes to previous
guidance assumptions.
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(1)
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Type curve assumptions
are based on the Total Proved plus Probable Undeveloped reserves
contained in the McDaniel Reserve Report as disclosed in the
Company's Annual Information Form which is available under the
Company's profile on SEDAR+ at www.sedarplus.ca. "McDaniel" means
McDaniel & Associates Consultants Ltd. independent qualified
reserves evaluators. "McDaniel Reserve Report" means the
independent engineering evaluation of the crude oil, natural gas
and NGL reserves, prepared by McDaniel with an effective date of
December 31, 2022 and a preparation date of March 9,
2023.
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ADDITIONAL INFORMATION
ABOUT RUBELLITE
Rubellite is a Canadian energy company engaged in the
exploration, development and production of heavy crude oil from the
Clearwater formation in
Eastern Alberta, utilizing
multi-lateral drilling technology. Rubellite has a pure play
Clearwater asset base and is
pursuing a robust organic growth plan focused on superior corporate
returns and funds flow generation while maintaining a conservative
capital structure and prioritizing environmental, social and
governance ("ESG") excellence. Additional information on Rubellite
can be accessed at the Company's website at www.rubelliteenergy.com
and on SEDAR+ at www.sedarplus.ca.
The Toronto Stock Exchange has neither approved nor disapproved
the information contained herein.
ADVISORIES
BOE VOLUME CONVERSIONS
Barrel of oil equivalent ("boe") may be misleading, particularly
if used in isolation. In accordance with NI 51-101, a conversion
ratio for conventional natural gas of 6 Mcf:1 bbl has
been used, which is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. In addition,
utilizing a conversion on a 6 Mcf:1 bbl basis may be
misleading as an indicator of value as the value ratio between
conventional natural gas and heavy crude oil, based on the current
prices of natural gas and crude oil, differ significantly from the
energy equivalency of 6 Mcf:1 bbl. A conversion ratio of 1 bbl
of heavy crude oil to 1 bbl of NGL has also been used
throughout this news release.
ABBREVIATIONS
The following abbreviations used in this news release have the
meanings set forth below:
bbl
barrels
bbl/d
barrels per day
boe
barrels of oil equivalent
MMboe
million barrels of oil equivalent
INITIAL PRODUCTION RATES
Any references in this news release to initial production rates
are useful in confirming the presence of hydrocarbons; however,
such rates are not determinate of the rates at which such wells
will continue production and decline thereafter and are not
necessarily indicative of long-term performance or ultimate
recovery. Readers are cautioned not to place reliance on such rates
in calculating the aggregate production for the Company. Such rates
are based on field estimates and may be based on limited data
available at this time.
FORWARD-LOOKING INFORMATION
Certain information in this news release including management's
assessment of future plans and operations, and including the
information contained under the heading "Operations Update" may
constitute forward-looking information or statements (together
"forward-looking information") under applicable securities laws.
The forward-looking information includes, without limitation,
statements with respect to: maintaining continuous drilling
operations at Figure Lake for the remainder of 2023 and the
benefits to be derived from doing so including reducing costs and
improving capital efficiencies; plans to accelerate the evaluation
of the BLMS lands and the number of wells expected to be drilled at
Figure Lake in the second half of 2023; the expectation that Figure
Lake is the primary focus of investment and development; 2023
average production guidance; expectations respecting Rubellite's
future exploration, development and drilling activities and
Rubellite's business plan; and including the information and
statements contained under the heading "About Rubellite".
Forward-looking information is based on current expectations,
estimates and projections that involve a number of known and
unknown risks, which could cause actual results to vary and in some
instances to differ materially from those anticipated by Rubellite
and described in the forward-looking information contained in this
news release. In particular and without limitation of the
foregoing, material factors or assumptions on which the
forward-looking information in this news release is based include:
the successful operation of the Clearwater assets; forecast commodity prices
and other pricing assumptions; forecast production volumes based on
business and market conditions; foreign exchange and interest
rates; near-term pricing and continued volatility of the market;
accounting estimates and judgments; future use and development of
technology and associated expected future results; the ability to
obtain regulatory approvals; the successful and timely
implementation of capital projects; ability to generate sufficient
cash flow to meet current and future obligations and future capital
funding requirements (equity or debt); Rubellite's ability to
operate under the management of Perpetual Energy Inc. pursuant to
the management and operating services agreement; the ability of
Rubellite to obtain and retain qualified staff and equipment in a
timely and cost-efficient manner, as applicable; the retention of
key properties; forecast inflation, supply chain access and other
assumptions inherent in Rubellite's current guidance and estimates;
climate change; severe weather events (including wildfires); the
continuance of existing tax, royalty, and regulatory regimes; the
accuracy of the estimates of reserves volumes; ability to access
and implement technology necessary to efficiently and effectively
operate assets; cybersecurity breaches; the ongoing and future
impact of pandemics (including COVID-19); and the war in
Ukraine and related sanctions on
commodity prices and the global economy, among others.
Undue reliance should not be placed on forward-looking
information, which is not a guarantee of performance and is subject
to a number of risks or uncertainties, including without limitation
those described herein and under "Risk Factors" in Rubellite's
Annual Information Form and MD&A for the year ended
December 31, 2022 and in other
reports on file with Canadian securities regulatory authorities
which may be accessed through the SEDAR+ website www.sedarplus.ca
and at Rubellite's website www.rubelliteenergy.com. Readers are
cautioned that the foregoing list of risk factors is not
exhaustive. Forward-looking information is based on the estimates
and opinions of Rubellite's management at the time the information
is released, and Rubellite disclaims any intent or obligation to
update publicly any such forward-looking information, whether as a
result of new information, future events or otherwise, other than
as expressly required by applicable securities law.
SOURCE Rubellite Energy Inc.