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Relentless Resources Drills 3 Heathdale Wells, Plans 2 More

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Relentless Resources Ltd. has reported its financial and operating results for the three months ended March 31, 2015.

Heathdale

• In Q1 2015, Relentless drilled, completed and tied in two new Glauconite horizontal wells (100% working interest) at Heathdale, Alberta. The 14-8 and 7-8-27-9 W4 wells were brought on-stream in March 2015 through a mutiwell oil treating battery. The two wells have averaged a combined rate of 185 boe/d (80% oil) total over 44 days of production and are currently producing at approximately 140 boe/d combined. The Heathdale 9-7-27-9 W4 multiwell battery is now fully operational. Approximately $3.0 million dollars was incurred drilling, completing, equipping the two horizontal wells and building the multiwell battery in winter conditions in Q1 2015.
• Heathdale production was restricted in Q1 2015 due to the facility construction work and spring access conditions. As of May 1, 2015 all three Heathdale horizontal wells were producing.
• Based on field estimates, Heathdale is currently producing 200 bbl/d of oil and 420 mcf/d of gas at 100% working interest. Two additional horizontal wells are currently licensed and ready to be drilled. Relentless has greater than 25 future Glauconite locations on working interest lands.

Operational and Financial Highlights

• Relentless' current corporate production, with the three Heathdale wells producing, is approximately 430 boe/d (60% oil).
• At March 31, 2015, net debt was $2.64 million. Current net debt is $2.55 million on a newly expanded credit facility of $4.0 million.

Even though commodity prices were low in Q1 2015, Relentless posted a number of positive achievements:

• Daily production volumes increased by 263% to 235 boe/d from 65 boe/d in the same period last year.
• Oil and gas revenues increased by 81% to $632,026 despite a 50% decrease in realized commodity prices between Q1 2015 and Q1 2014.
• Operating expenses decreased 18% to $19.98/boe compared to Q1 2014.
• General and administration expense decreased 60% to $5.87/boe compared to Q1 2014.