DALLAS, TX, May 31, 2013 (GLOBE NEWSWIRE) -- Red Mountain Resources, Inc. ("RMR" or "Red Mountain") (OTC QB: RDMP.QB), a growth-oriented energy company engaged in the acquisition, development, and exploration of oil and natural gas properties, announced today the initial production of its recently drilled and completed Madera 24 Federal 3H well.
The initial production rate from the Madera 24 Federal 3H well was 1,491 barrels of oil equivalent per day (81% oil). Located in the Permian Basin, the Madera 24 Federal 3H well has a total measured depth of 13,570 feet, including a true vertical depth of 9,062 feet and a lateral length of 4,508 feet. A 20-stage open-hole completion system was run, and all 20 stages were opened to the well bore. The stages were frac treated with a total of 1.94 million pounds of sand. Flow-back on the well is currently taking place to clean out the lateral leg, and the load recovery is approximately 49.7%.
RMR owns approximately 32.5% working interest and 24.3% net revenue interest in the well.
"We are extremely excited with the successful drilling and completion of the Madera 24 Federal 3H well and its initial production rate," said Alan Barksdale, Chief Executive Officer of RMR. "These production results from our second operated horizontal well in the Brushy Canyon formation demonstrate the tremendous potential of our Delaware Basin property and further validate the economic and type curve assumptions of our Madera development program. We also completed the conversion of the Madera 25 Federal 1 to a salt water disposal well which reduces our disposal costs for the Madera wells by more than 65%."
RMR's Madera prospect is comprised of 2,545 gross acres (1,132 net) and includes Brushy Canyon, Avalon Shale, Bone Spring, Strawn, and Atoka formations. In addition to the Madera 24 Federal 3H well, RMR expects to drill 10 additional Brushy Canyon horizontal wells within the Madera prospect to go along with 12 potential Avalon Shale horizontal wells, 12 potential Bone Spring horizontal wells, and three potential Strawn/Atoka vertical wells. RMR operates all of the leases within the Madera prospect through its wholly owned subsidiary, RMR Operating, LLC, and owns working interests ranging from 23.3% to 83.6% and net revenue interests ranging from 17.5% to 62.7%.
Mr. Barksdale concluded, "Because we own and operate the Madera prospect, we are in the unique position of controlling the timing associated with the potential drilling locations. This provides us with great flexibility to drill at the appropriate time and allocate resources to the various locations as it makes sense based on our overall company objectives. We believe this property is a prime example of how RMR is carefully building the company with a focus on production and reserve growth to ensure its 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, RMR 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.
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.
CONTACT: Stephen Evans Red Mountain Resources, Inc. Phone: 214.871.0400 Email: firstname.lastname@example.org Source:Red Mountain Resources, Inc.