OKOTOKS, ALBERTA--(Marketwire - June 2, 2011) - RedWater Energy Corp. ("RedWater" or the "Company") (TSX VENTURE:RED - News) is pleased to report that it has increased its production to 120 boepd at the end of May. The production increase was attributed to the successful conversion of the Company's behind pipe production to actively producing wells and acquisitions, most notably, the purchase of Redwater assets for $450,000 in April 2011. Current production is split 55% oil and 45% natural gas.The Company has an additional 235 boepd of tested production in various stages of equipping, re-activation and tie-in. Behind pipe production is split 40% oil and 60% natural gas. Oil production is comprised of 100 bopd of light Manville oil at Redwater. Additionally, RedWater has approximately 840 mcf/d (135 boepd) of potential natural gas production slated to come on-stream.In summary, RedWater expects production to increase to 355 boepd over the next few months with the equipping and tie-in of existing wells. This represents an increase of 25 boepd over previously announced estimates on May 9, 2011. Management's previously announced 2011 production targets remain unchanged with average production of 200-250 boepd and exit production of 400 boepd. The Company will recommence its 5 well Phase 1 drilling program in July and anticipates an additional 5-6 well drilling program to follow starting in the fourth quarter.Business of RedWater Energy Corp.RedWater Energy Corp. is a junior oil and gas exploration and development company. RedWater is engaged in the acquisition, enhancement and exploration of conventional oil and gas projects in Western Canada with a focus on developing high working interest light oil opportunities. RedWater's core properties are located in Redwater, Westlock, Fairydell-Bon Accord and Long Coolee areas of Alberta. www.redwaterenergy.com.Note: BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellheadThe information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. These statements are based upon assumptions that are subject to significant risks and uncertainties. Because of these risks and uncertainties and as a result of a variety of factors, the actual results, expectations, achievements or performance may differ materially from those anticipated and indicated by these forward looking statements. Although RedWater believes that the expectations reflected in forward looking statements are reasonable, it can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, RedWater disclaims any intention and assumes no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
- RedWater Energy Corp.
- RedWater Energy Corp.RedWater Energy Corp.