As previously announced on April 30, GMI analyzed 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. Richfield is in the process of implementing 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 feet total depth in May 2012, confirming the discovery of approximately 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., CEO of Richfield, stated, "We anticipated with great interest the results that we have now obtained from GMI's expert team of consultants, who were retained to study the Liberty #1 Well's fracture network over the past 8-10 weeks. We are confident that their findings will aid Richfield in our planned completion operations in an effort to establish good commercial flow within the primary reservoir objectives. Other options that Richfield may consider, at some point in the future, could include drilling to test deeper formations, including the Mississippian at approximately 9,500 feet, which is believed to be the highest structural position in the Central Utah Overthrust. To be clear, our current plans are to complete the Liberty #1 Well in the best-known fracture network within the oil and gas saturated Twin Creek. Further plans with respect to completion dates will be forthcoming as services and procedures are solidified."