Current RRX:CA Stock Info

Branching out of its core Dodsland Viking play, Raging River Exploration (ticker: RRX) has taken a major step in building a strong asset in the Duvernay Shale.

Raging River Exploration: Branching Out into the Duvernay

Source: Raging River Exploration

In June Raging River announced its land position in the Duvernay Shale in Central Alberta. The play consists of approximately 99,200 acres prospective for Duvernay light oil development. Drilling activities will begin in the fourth quarter of 2017. Raging River is enthusiastic about potential in the Duvernay Shale because of success visible by other parties active in the Duvernay asset.

Raging River Exploration: Branching Out into the Duvernay

Source: Raging River Exploration

Core asset: Dodsland Viking play

Prior to the Duvernay play, Raging River was 100% focused on its Viking resource play in Dodsland. The development of the Viking play has, of late, taken the form of utilizing longer laterals to improve production. Thirteen extended reach laterals have been drilled, ten of which are three-quarters of a mile long, and the remaining three are one-mile long. The design is typically comprised of 13 wells per section, with the above design. The previous design utilized 22 wells per section, all of which were smaller wells.

Raging River Exploration: Branching Out into the Duvernay

Standard “old” horizontal design, Source: Raging River Exploration

Raging River Exploration: Branching Out into the Duvernay

New horizontal design, Source: Raging River Exploration

In Q1, 2017, Raging River reported an average production of 22,755 BOEPD, 92% oil. This level of production was a quarterly record for the company and represented a 38% increase in production over Q1, 2016. The company attributes its increased production to the success of its 2016-2017 drilling program.

The addition of the Duvernay assets has not detracted from Raging River’s development of the Viking play. Raging River drilled 104 gross, 99.5 net wells during Q1, 2017—of which 98 gross, 93.5 net were oil producers; 5 were service wells, and 1 was a dry hole. During the same quarter of 2016, the company drilled 57 gross, 56.6 net wells—of which only 1 was a service well. The company currently has over 6,800 drilled, licensed horizontal wells, with another approximately 3,150 potential drilling locations.

Raging River’s exploration and development budget was increased to $340 million from $310 million. Of that $340 million, $270 million will be allocated to drilling, completions, and equipping; $50 million to waterflood and gas conservation; and the last $20 million to land, seismic, and maintenance.

Raging River’s waterflooding program in the Viking resource play has been largely successful, adding a 10% incremental recovery factor to the play.

Raging River Exploration Inc. is presenting at EnerCom’s The Oil & Gas Conference® 22

Raging River will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

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