Red Fork Energy has news on oil and liquids gas play in...

Red Fork Energy has news on oil and liquids gas play in Oklahoma, in pre open

Wed 8 August 2012

Red Fork Energy (ASX: RFE) is set to update the market on the ongoing development of the Big River horizontal Mississippian oil and liquids rich gas play in northern Oklahoma, and has today been granted a trading halt by the ASX to organise the news.

Red Fork has not yet elaborated further, but the market is anticipating the news especially after the announcement earlier in the week on the McMurtry 1-21H well in Development Area 2 - which continues to be a winner for the company with production averaging about 470 barrels of oil equivalent per day.

The well has been producing uninterrupted since testing commenced and has been transferred to the company’s production monitoring team for permanent production.

Further production from the Mississippi Lime play is just waiting on completion works to be carried out on the McMurtry 1-22H, Bunch 1-19H and State 1-13H wells.

Red Fork has also reached a deal to sell crude oil produced at the Mississippi Lime play to a subsidiary of Phillips 66 (NYSE: PSX).

Oil from its 75,000 acre (303.5 square kilometres) holding in north central Oklahoma will be committed to Phillips 66 for pipeline connection and/or trucking of oil production from that acreage.

Phillips 66 operates one of the world's largest crude oil refining businesses, including substantial oil pipeline assets for its 187,000 barrel-per-day refinery located in Ponca City, Oklahoma.

The halt will last until the earlier of an announcement being made to the market, or the opening of trade on Friday 10th August.

http://www.proactiveinvestors.com.au/companies/news/32136/red-fork-energy-has-news-on-oil-and-liquids-gas-play-in-oklahoma-in-pre-open-32136.html