Rubellite Energy _______________________________________________________________________________________________
“ Last year , we completed two major transactions ,” Sue continues . “ One involved adding a new core area targeting the Mannville Stack in the Cold Lake area , leveraging our expertise with the multi-lateral drilling technology that had proved successful in the Clearwater formation . This expansion came through acquiring a company named Buffalo Mission , which added daily heavy oil production of about 2,500 barrels per day , taking our total heavy oil production to over 7,500 barrels a day .
“ As a mechanism to re-establish financial flexibility after the Buffalo Mission acquisition , we decided it was the right time to look at recombining Perpetual into the fold of Rubellite . At the time , Perpetual produced over 4,000 barrels of oil equivalent ( BOEs ) per day , primarily consisting of gas and liquidsrich gas . From our point of view , this decision was well-timed and enabled us to leverage the available financial capacity on Perpetual ’ s balance sheet . Furthermore , it gave us a certain degree of commodity diversification during what we believed to be the low point for the gas price cycle . The integration also brought about operational and administrative synergies . Since the completion of this transition on November 1st , we have evolved into a company producing 12,000 BOE per day , comprising around 8,000 BOEs of heavy oil production and 4,000 BOEs of gas and natural gas liquids ,” Sue enlightens .
Optimization strategies
As a few years have passed since the inception of Rubellite and with the recombination transaction bringing Rubellite and Perpetual back together , Sue reflects on the changes that have followed within the company . “ We are a stronger company with a clear business plan and well positioned for another level of growth . At Rubellite , our business plan remains the same , focused on robust , organic heavy oil growth utilizing multi-lateral drilling technology , with Perpetual increasing our scale and efficiency , and providing us with financial optionality and diversification from a risk management point of view . We will continue to develop our base assets in the Clearwater Formation and the Mannville Stack , which have an extensive inventory of drilling locations to continue to grow the operations . Another strategic focus for us this year is to get more from our base assets by advancing enhanced oil recovery ideas in our Clearwater pools and by evaluating secondary zones in the Mannville Stack . Alongside an even greater emphasis on exploration , these themes represent our key strategic priorities for the year ahead ,” she states .
Focusing specifically on Rubellite ’ s work in the Clearwater formation , Sue sheds light on ongoing optimization of the development of the large oil accumulations and experimentations with technology . “ Figure Lake , our main property in the Clearwater formation , is turning out to be a great success . This asset accounts for the majority of our production , with
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