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Abstract
Subsequent to the quarter RedStar completed two separate sales of licensed copies of portions of its Cutbank Ridge 3-D seismic data to large independent oil and gas producers operating in the Cutbank Ridge area. The data was sold for gross proceeds of $6.8 million, netting RedStar $5.6 million after transaction fees. This capital will be deployed in the Company's exploration program and for general working capital purposes. RedStar expects to complete similar sales to other companies operating in the Cutbank Ridge area over the next three months and is in continuing discussions to sell its proprietary rights to the Cutbank Ridge 3-D database, while maintaining a copy of the data for internal use in developing future exploration opportunities
RedStar expects to achieve a production level of approximately 1,600 to 1,800 boe/d early in the first quarter of 2007 depending on weather conditions and third party field operations. Current production volumes are approximately 1,000 boe/d with approximately 280 boe/d either shut-in or curtailed due to non-operated facility issues this past summer. In addition, the Company has approximately 450 boe/d behind pipe of which management anticipates 350 boe/d will be on production late in the fourth quarter or early in 2007 depending on weather conditions. The Company is also forecasting to add 100 to 200 boe/d prior to year end from its early winter capital program.