Richfield Oil & Gas Company (ROIL) ("Richfield" or the "Company"), has engaged Baker Hughes GMI Geomechanics Services ("GMI") to lead a team of technical consultants to evaluate the Liberty #1 Well in order to determine the next phase of operations, which is anticipated to result in commercial production.
GMI will be studying the geo-mechanics of the Liberty #1 Well, the natural fractures in the Twin Creek Limestone and Navajo Sandstone, reservoir permeability, and formation issues associated with relative permeability damage which is inhibiting commercial flow rates of known hydrocarbons. This work is anticipated to take five to six weeks to complete. At that time, Richfield will have the team's recommendations for the next phase of operations in the Liberty #1 Well.
Richfield's interest in the Liberty #1 Well, which is contained in the Liberty Prospect, is 64.29% working interest before payout ("BPO") and 50.56% working interest after payout ("APO"). In the remaining Liberty Prospect, which incorporates a total of 1,185 acres, Richfield owns a 74.69% working interest BPO and a 59.56% working interest APO. The Liberty Prospect is on the Paxton Thrust in the northernmost part of the Central Utah Overthrust in Juab County, Utah. The current Liberty #1 sidetrack was drilled to approximately 4,150' TD in May 2012 confirming the discovery of about 1,200 gross feet of hydrocarbon charged zone in the Twin Creek Limestone and the Navajo Sandstone, including crude oil, natural gas, and condensates.
Douglas C. Hewitt, Sr., Chairman and CEO of Richfield, stated, "We anticipate with great excitement the results using this expert team of consultants we have successfully retained to study the Liberty #1 Well. We believe that their expertise will aid Richfield's work on the well, so that we can achieve meaningful commercial production."