Dallas, TX, April 22, 2014 (GLOBE NEWSWIRE) -- Red Mountain Resources, Inc. ("RMR" or "Red Mountain") (OTC QB: RDMP), a growth oriented energy company engaged in the acquisition, development, and exploration of oil and natural gas properties, announced the following operational update today.
MADERA AREA (Lea County, NM)
RMR has seven producing wells in the Madera Area, one disposal well and one well awaiting completion.
RMR's seventh producing well (third horizontal) in the Madera Area, the Madera 19 Federal 4H, was completed using a 27-stage fracture stimulation over a perforated lateral length of 6,813 feet in the Brushy Canyon zone with a total measured depth of 15,843 feet. The well achieved a 24-hour IP rate of 740 BOE/d (86% oil) and a 15-day average rate of 666 BOE/d (84% oil). RMR owns approximately 84% working interest and 63% net revenue interest in the well.
RMR's eighth well (fourth horizontal) in the Madera Area, the Madera 25 Federal 2H, was drilled to a total measured depth of 15,827 feet, including a true vertical depth of 9,000 feet and a lateral length of 6,826 feet. RMR owns approximately 30% working interest and 23% net revenue interest in the well. RMR encountered problems with the casing during the early stages of the completion, but expects to have the repairs finished and completion scheduled in the near term.
"We are pleased with our continued success at our Madera asset. The Madera 19 Federal 4H is still improving, and we expect this well to perform in line with our type curves," said Alan Barksdale, President and CEO of RMR. "The Brushy Canyon formation continues to demonstrate its potential in the Delaware Basin. We also drilled the Madera 25 Federal 2H and expect to proceed with the completion in the near term. Once the Madera 25 Federal 2H is completed and on line, we will evaluate the additional potential in the Avalon, Bone Spring and multiple Wolfcamp zones at the Madera."
RMR has identified eight additional Brushy Canyon horizontal well locations within the Madera prospect to go along with potential Avalon Shale, Bone Spring, Wolfcamp and Strawn/Atoka wells. RMR operates all of the leases within the Madera prospect through its wholly owned subsidiary.
TOM TOM AREA (Chaves County, NM)
RMR is also focusing on its Tom Tom area workover program in Chaves County, New Mexico. Initially, RMR will re-enter three wells at the Tom Tom Prospect. RMR's majority owned subsidiary, Cross Border Resources, Inc. ("Cross Border"), owns approximately 100% working interest and net revenue interest ranging from 75% to 88% in the three wells. An overview of the proposed work on the three initial wells is set forth below:
Well #1 - Perforate one additional porosity zone (two currently open) and fracture stimulate all three zones
Well #2 - Deepen well and perforate two additional porosity zones (three currently open) and fracture stimulate all five zones
Well #3 - Run ball and sleeve frac-liner system in the horizontal lateral and fracture stimulate. The well has a lateral length of approximately 2,055 feet and will be fracture stimulated with 10 stages.
TURKEY TRACK AREA (Eddy County, NM)
Cross Border also owns varying non-operated working interest in the Turkey Track area, where Mewbourne Oil Company ("Mewbourne") is actively drilling horizontal 1st and 2nd Bone Spring wells. The most recent well, the Zircon 12/7 BC Federal 1H, was completed in the 2nd Bone Spring in November 2013. The well achieved an IP rate of 367 BOE/d (91% oil) and a 30-day average rate of 413 BOE/d (81% oil). We own approximately 16% working interest and 14% net revenue interest in the well.
Mewbourne has plans to drill four more wells before the end of calendar year 2014, which include the Zircon 12/7 GF Federal 1H (currently drilling) and the Zircon 2 B1EH State 1H (July 2014 spud date).
Mr. Barksdale concluded, "Our unique acreage position and the stacked pays of the Permian provide us with the flexibility to drill within our available capital and allocate resources to the various locations as it makes sense based on our overall company objectives. We believe building the company with a focus on maintaining liquidity while growing production and reserves will ensure long term viability and continued success."
About Red Mountain Resources, Inc.
Red Mountain Resources, Inc. is a Dallas-based growth-oriented energy company engaged in the acquisition, development and exploration of oil and natural gas properties in established basins with demonstrable prolific producing zones. Currently, the Company has established acreage positions and production in the Permian Basin of West Texas and Southeast New Mexico and the onshore Gulf Coast of Texas. Additionally, the Company has an established and growing acreage position in Kansas. For more information, please go to www.RedMountainResources.com .
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release that address activities, events, or developments RMR expects, believes, or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made by RMR based on management's experience and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Such statements are subject to a number of assumptions, risks, and uncertainties, many of which are beyond the control of RMR, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. Further information on such assumptions, risks and uncertainties is available in RMR's filings with the Securities and Exchange Commission ("SEC"). RMR's SEC filings are available on its website at www.RedMountainResources.com and on the SEC's website at www.sec.gov . Any forward-looking statement speaks only as of the date on which such statement is made and RMR undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.
Red Mountain Resources, Inc. 2515 McKinney Ave., Suite 900 Dallas, Texas 75201 Attention: Alan Barksdale, Chief Executive Officer Telephone No.: (214) 871-0400
