Calgary, Alberta–(Newsfile Corp. – August 30, 2023) – Resolute Resources Ltd. (TSXV: RRL) (“RRL” or the “Company“) is pleased to announce the following corporate activities:
News Dissemination
As announced in the August 23, 2023 news release of the Company, the business combination between the Company (formerly, Crossover Acquisitions Corp.) and Resolute Resources Ltd. was completed on August 23, 2023. The shares of the Company will resume trading on the TSX Venture Exchange (“TSXV“), under the symbol RRL, at the open on August 30, 2023. Due to the changing shareholder registration and the evolving shareholder registry upon the resumption of trading, please subscribe to the corporate mailing list, at www.resoluteresourcesltd.com.
Land Acquisition
As reflected in the filing statement of the Company dated August 10, 2023 (the “Filing Statement“), the Company would also like to announce that it acquired 8.75 sections of land in the Grimshaw and Flood area of the GFD Project in the Crown land sale held on May 17, 2023. This brings the Company’s total land package in the GFD Project to 53.5 sections or approximately 35,000 acres.
Operations Update
The Company has began preparations for the upcoming exploration program. RRL recently completed surveying the 14-19-83-23 W5M and 5-25-83-24 W5M surface pad locations. It is expected the 5-25 location will be the first spud, and a pre disturbance environmental baseline study and aquifer water chemistry study has each been completed in advance of drilling. This location is targeting the Shoreface A reservoir. The location was chosen based on a combination of well control, 3D seismic and to minimize surface disturbance.
Surface leases for the 5-25 drill pad and the 14-19 drill pad have been signed and a well license for the RESOLUTERESLTD HZ ANTHONY 7-24-83-24 well has filed and obtained. The 5-25 pad construction commenced on August 23, 2023 and was completed on August 26, 2023.
A drilling rig has been contracted and is expected that the first of three wells to be drilled in the second half of 2023 will be spud in the first week of September.
3D Seismic Interpretation
RRL has received the results of the 3D seismic data that was acquired earlier in the year. The 5.5 square miles 3D seismic acquisitions covers both the Grimshaw drilling locations. The data was of high quality and did not require reprocessing. A 3D model has been developed and interpreted. Resolute’s 3D seismic model is being used to better target the horizontal sections of our planned wells for both the Shoreface A sand and Channel sand wells. Resolute’s 3D seismic interpretation was not used in the generation of the resource report due to timing of data acquisition, interpretation, and the resource report.
Resource Report
RRL is pleased to announce the results of its independent resource evaluation (the “Evaluation“), which was conducted by GLJ Ltd (” GLJ“) of Calgary and published in a resource report dated February 28, 2023 (the “Report“). The Evaluation was conducted, and the Report was prepared, in accordance with the definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (“COGEH“) and National Instrument 51-101 – Standards for Disclosure of Oil and Gas Activities (“NI 51-101“). The Report was summarized in the Filing Statement, which was filed with the TSXV in connection with the business combination and the listing of the Company as a Tier 2 oil and gas issuer.
The Report covers 38 of the 53.5 sections that RRL is the 100% working interest owner in its light oil Grimshaw, Flood and Duncan project. A summary of certain findings of the Report are as follows (capitalized terms not otherwise defined have the meanings ascribed to such terms in the Report):
Economic Estimation
Economic parameters for the Grimshaw, Duncan, and Flood properties were based on the Company’s feedback to GLJ that the company plans to drill Clearwater-style multi-leg lateral wells to produce the reservoirs. Using industry knowledge of the Clearwater Formation and well geometries similar to what the Company has proposed, GLJ was able to estimate operating costs, capital costs, and abandonment costs.
Information sources for GLJ’s price forecast include government agencies, industry publications, Canadian oil refiners and natural gas marketers. GLJ’s forecasts are based on an informed interpretation of currently available data. While the 3 Consultants’ Average (GLJ Ltd., McDaniel & Associates Consultants Ltd., and Sproule) included in the Report are considered reasonable at this time, users of these forecasts should understand the inherent high uncertainty in forecasting any commodity or market.
Range of Uncertainty
The range of uncertainty of estimated recoverable volumes may be represented by either deterministic scenarios or by a probability distribution. Resources should be provided as low, best, and high estimates as follows:
Low Estimate: This is a conservative estimate of the quantity that will actually be recovered. It is likely that the actual remaining quantities recovered will exceed the low estimate. If probabilistic methods are used, there should be at least a 90 percent probability (P90) that the quantities recovered will equal or exceed the low estimate.
Best Estimate: This is considered to be the best estimate of the quantity that will actually be recovered. It is equally likely that the actual remaining quantities recovered will be greater or less than the best estimate. If probabilistic methods are used, there should be at least a 50 percent probability (P50) that the quantities actually recovered will equal or exceed the best estimate.
High Estimate: This is considered to be an optimistic estimate of the quantity that will actually be recovered. It is unlikely that the actual remaining quantities recovered will exceed the high estimate. If probabilistic methods are used, there should be at least a 10 percent probability (P10) that the quantities actually recovered will equal or exceed the high estimate.
For reference, the COGEH defines Prospective Resources as “Those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects.”
Summary of Details
GLJ attributed 61% of RRL’s internal mapping to their reservoir model.
| Resolute Oil Sands and Crown Lands | ||||
| Positive | Positive | Grid Volume | Grid Volume | |
| Area (ha) | Area (ac) | (ha m) | (ac ft) | |
| Total Resolute | 3,772 | 9,321 | 15,480 | 125,498 |
| Total GLJ | 3,703 | 9,150 | 9,507 | 77,071 |
The Report estimates 113 to 127 well locations across the Grimshaw, Flood and Duncan prospect.
| RESOLUTE RESOURCES – TOTAL (Grimshaw, Flood, Duncan – Shoreface and Channel combined) | Low | Best | High |
| Well Count | 113 | 121 | 127 |
| Capex Per Well – ($000’s) | $1,900 | $1,900 | $1,900 |
| Total Capex – ($000’s) | $214,700 | $229,900 | $241,300 |
Due to the exploration nature of the project, a conservative 10% likelihood of success was applied across all prospects, however, a high likelihood of development was applied to the prospects.
| RESOLUTE RESOURCES – TOTAL | Low | Best | High |
| Change of Development | 83% | 85% | 86% |
| Chance of Discovery | 10% | 10% | 10% |
The report estimates Undiscovered Petroleum Initially in Place (UPIIP) across the Grimshaw, Flood and Duncan prospects. Undiscovered Petroleum Initially-In-Place, which is equivalent to undiscovered resources, is that quantity of petroleum that is estimated, on a given date, to be contained in accumulations yet to be discovered.
| RESOLUTE RESOURCES – TOTAL | Gross Lease Unrisked UPIIP (MMbbl) | |||
| Low | Best | Mean | High | |
| Property | ||||
| Grimshaw Shoreface | 17.7 | 27.5 | 28.3 | 39.9 |
| Grimshaw Channel | 24.0 | 42.2 | 44.1 | 66.5 |
| Flood Shoreface | 15.1 | 26.5 | 28.0 | 43.4 |
| Flood Channel | 38.6 | 71.4 | 17.3 | 117.0 |
| Duncan Shoreface | 9.6 | 16.7 | 17.7 | 27.2 |
| Duncan Channel | 10.1 | 16.9 | 18.0 | 27.2 |
| Total | 115.1 | 201.2 | 153.4 | 321.2 |
There is no certainty that any portion of the resources will be discovered. If discovered, there is no certainty that it will be commercially viable to produce any portion of the resources.
Resource and Values – Risked and Unrisked Economics
| RESOLUTE RESOURCES – TOTAL | |||||||
| Summary of Risked Resources and Values | Summary of Unrisked Resources and Values | ||||||
| MARKETABLE RESOURCES | Low | Best | High | MARKETABLE RESOURCES | Low | Best | High |
| Light & Medium Oil (Mbbl) | Light & Medium Oil (Mbbl) | ||||||
| Gross Lease | 476 | 863 | 1,517 | Gross Lease | 6,222 | 10,681 | 18,271 |
| Total Company Interest | 476 | 863 | 1,517 | Total Company Interest | 6,222 | 10,681 | 18,271 |
| Net After Royalty | 433 | 745 | 1,248 | Net After Royalty | 5,653 | 9,292 | 15,138 |
| Oil Equivalent (Mboe) | Oil Equivalent (Mboe) | ||||||
| Gross Lease | 476 | 863 | 1,517 | Gross Lease | 6,222 | 10,681 | 18,271 |
| Total Company Interest | 476 | 863 | 1,517 | Total Company Interest | 6,222 | 10,681 | 18,271 |
| Net After Royalty | 433 | 745 | 1,248 | Net After Royalty | 5,653 | 9,292 | 15,138 |
| BEFORE TAX PRESENT VALUE (M$) | BEFORE TAX PRESENT VALUE (M$) | ||||||
| 0% | $9,218 | $31,421 | $67,062 | 0% | $110,810 | $369,732 | $776,515 |
| 5% | $4,961 | $17,956 | $35,797 | 5% | $57,637 | $211,028 | $416,987 |
| 8% | $3,292 | $13,172 | $26,046 | 8% | $36,862 | $154,177 | $303,389 |
| 10% | $2,447 | $10,820 | $21,477 | 10% | $26,357 | $126,140 | $249,893 |
| 12% | $1,767 | $8,950 | $17,936 | 12% | $17,934 | $103,819 | $208,333 |
| 15% | $985 | $6,808 | $13,965 | 15% | $8,324 | $78,262 | $161,638 |
| 20% | $127 | $4,420 | $9,599 | 20% | -$2,054 | $49,785 | $110,264 |
CEO Bradley Parkes commented, “The Report shows a wide range of outcomes, which is expected, from a project at this stage, however, we feel the significant upside of the Grimshaw, Flood and Duncan prospect is depicted in this report. At Resolute we look forward to moving the valuation of the properties from the Risked numbers towards the Unrisked numbers.”
About Resolute Resources Ltd.
Resolute energy corporation trading on the TSXV under the symbol RRL.V. Resolute has projects in Northwest Alberta and Northeast British Columbia, where it is exploring shallow cretaceous sandstone reservoirs that can be exploited with Multi-Lateral Open Hole wells. Resolute has accumulated just under 35,000 acres in its GFD light oil project in Northwest Alberta and approximately 10,000 acres at its Evie project in Northeast BC. Resolute is pursuing projects that are high in environmental social and governance metrics, that result in lower emission oil and low water use due to no hydraulic fracturing, but that provide high economic returns.
Cautionary Statement Concerning Forward-Looking Statements
This press release contains certain information that may constitute “forward-looking information” under applicable Canadian securities legislation. Forward looking information includes, but is not limited to, future exploration and development plans, corporate and technical objectives, RRL’s 2023 drilling program and resource estimates relating to the Company’s properties. Forward-looking information is necessarily based upon a number of assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Factors that could affect the outcome include, among others: future prices and the supply of hydrocarbons, the future demand for hydrocarbons, the results of drilling, inability to raise the money necessary to incur the expenditures required to retain and advance the property, environmental liabilities (known and unknown), general business, economic, competitive, political and social uncertainties, results of exploration programs, risks of the oil and gas industry, delays in obtaining governmental approvals, and failure to obtain regulatory approvals. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. RRL disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
For further information, please contact:
Bradley Parkes FCSI, P.Geo
CEO & Director
Phone: 403-608-9327
Email: resolute@resoluteresourcesltd.com
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