CALGARY, ALBERTA -- (Marketwired) -- 04/30/13 -- Relentless Resources Ltd. (TSX VENTURE: RRL) ("Relentless" or "the Company") announces that it has filed its audited annual financial statements for the year ended December 31, 2012, the accompanying management's discussion and analysis, and the Form 51-101F1 Statement of Reserve Data and Other Oil and Gas Information of Relentless Resources Ltd., for the year ended December 31, 2012 (the "Report on Reserves Data"), as mandated by National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). All these filings are available on SEDAR under the profile of Relentless at www.sedar.com.
Message to Shareholders
The year 2012 was an extremely challenging time for the oil and gas industry in Western Canada. Low natural gas prices and deep oil pricing discounts continued throughout the year causing severe negativity in the public market place. Relentless Resources Ltd. ("Relentless" or the "Company") dedicated time and resources to find a joint venture partner to drill our Loverna property in order to increase the oil weighting in our production mix and to reduce capital exposure. In late 2012, Relentless secured a partner to drill two Viking horizontal wells on the Loverna property. Relentless raised $800,000 in flow through funds for a 30% cost share of the wells while retaining 51% of production from the two wells.
The Loverna 191/15-06-031-28W3/00 and 191/06-06-031-28W3/00 wells were drilled, completed and put on production late in the first quarter of 2013. The new well results are disappointing with the 191/15-06 well currently producing 25 bopd gross (13 bopd net) while the 191/06-06 well continues to recover load fluid. Field estimated Relentless March Corporate production was 75 boed (50% oil and liquids) with 35 net bopd from Loverna.
Relentless has 100% working interest in the offset contiguous section which remains prospective for Viking horizontal wells. The geological model for the Viking formation on Relentless lands remains intact. In 2013, Relentless will continue to works towards full development of the Loverna Viking oil pool. Relentless has two additional licensed horizontal drilling locations and a minimum of six unlicensed drilling locations identified to develop the Loverna property with a drilling density of eight horizontal wells per section.
In 2012, Relentless essentially maintained production and revenues compared to 2011 while incurring minimal capital expenditures. Cash costs were marginally higher in 2012 than in 2011 with 2012 general and administrative costs approximately 20% lower than 2011. We remain committed to maintaining balance sheet strength. During 2013, Relentless plans to use free cash flow to pay down the Company's operating line.
Management will continue to enhance shareholder value by remaining receptive to possible business combinations, reducing the cost structure where possible and looking for new opportunities to build production and cash flow. In this regard, the Company has been evaluating a plethora of acquisition opportunities. To assist our objectives, the Company is looking to expand the current Board of Directors in the near future.
The management and Board of Directors would like to thank all shareholders for their continued support.
Annual General and Special Meeting
The Company also announces it has scheduled its annual general and special meeting of shareholders for Thursday, May 30, 2013, for the purposes of (i) electing directors, (ii) appointing auditors, and (iii) the annual approval of its incentive stock option plan in accordance with TSX Venture Exchange requirements.
About Relentless Resources Ltd.
Relentless is a Calgary-based emerging oil and natural gas company, engaged in the exploration, development, acquisition and production of natural gas and light gravity crude oil reserves in Alberta and Saskatchewan. Relentless's common shares trade on the TSX Venture Exchange under the symbol RRL.
Relentless's primary corporate objective is to achieve non-dilutive growth and enhance shareholder value through internal prospect development, strategic production acquisitions and prudent financial management.
Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding the volumes and estimated value of the Company's proved and probable reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Company are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.
These assumptions and statements necessarily involve known and unknown risks and uncertainties inherent in the oil and gas industry such as geological, technical, drilling and processing problems and other risks and uncertainties, as well as the business risks discussed in Management's Discussion and Analysis of the Company under the heading "Risk Factors & Risk Management". The Company does not undertake any obligation, except as required by applicable securities legislation, to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise.
Barrels of oil equivalent (boe) is calculated using the conversion factor of 6 mcf (thousand cubic feet) of natural gas being equivalent to one barrel of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl (barrel) is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
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.
Relentless Resources Ltd.
President & CEO
(403) 532-4466 ext. 227 or Mobile: (403) 874-9862
(403) 303-2503 (FAX)
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