Richfield Oil & Gas, the Salt Lake City-headquartered oil and gas developer focused on production and further drilling to Arbukle targets on their Central Kansas Uplift assets, as well as their highly prospective leaseholds in Utah (Sanpete-Sevier Overthrust, Central Utah Overthrust, and Mancos Shale), reported expansion of their hydrocarbon footprint today with the acquisition of a producing well on 640 acres in Uinta County, Wyoming (about 120 miles northeast of Salt Lake City just across the Utah-Wyoming border).
The acquisition (effective Dec 1, 2012), of the Wasatch National Forest Well #16-15 from the previous holder, Frontier Energy, LLC, represents a 100% WI in this choice mineral lease on the southern tip of the Moxa Arch and an excellent deal for shareholders at only $610k. The #16-15 well was completed in the Dakota Formation at around 15.56k feet in a 115-foot thick section with 15-30% porosity and there is also untested potential in the Frontier Formation (65 feet thick, 16-20% porosity at around 15.16k feet).
Given the solid oil production figures prior to being shut-in back in 2003, in addition to the four immediately adjacent fields that have produced from both the Dakota and Frontier formations, the #16-15 acquisition dovetails nicely with the company’s overall reserve and production growth strategy, adding significant acreage to ROIL’s Utah/Wyoming position. Collectively this is quite an impressive portfolio for a junior like Richfield, which was founded just a short time ago by some of the most seasoned veterans on the scene today, with several well-chosen production interests emerging since then as facets in a larger strategy.
Chairman and CEO of ROIL, Douglas C. Hewitt, a 27-year industry veteran who has been serving on the Board since the company’s inception, underscored how this acquisition was part of that larger methodical undertaking by the company to accrue high-grade assets for ROIL’s reserve and production portfolio. Given the nature of the geology, the proven historic production potential, and ROIL’s introduction of newer recovery methods, Hewitt’s remarks about how the acquisition represents “excellent reserve values in both known and potential off-set, as well as infield drilling locations,” are well served.
Investors will certainly be keeping an eye on Richfield moving forward as the company continues to reinforce an already strong package of low-risk development projects with the kind of upside potential that has been painstakingly validated through analysis of the field wellbores in question, in addition to the necessary due diligence with regard to the overall reserve potential. Today’s announcement is no exception to this rigorous analytical methodology of course and ROIL will be looking to ramp up flow testing and production on the newly acquired project starting ASAP in Q1 of this year.
For more information on Richfield Oil & Gas Company, visit www.RichfieldOilAndGas.com
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