According to the company, this production level has been maintained and increased with less than a week of unscheduled downtime or production interruptions despite the severe weather conditions experienced in Oklahoma during December 2009 and January 2010.

Since the acquisition, the company’s focus has been on a program of work to stabilize and where possible improve production from existing wells and to improve the efficiency and profitability of the Wagoner ‘A’ processing and compression facilities.

This program has been generating initial modest increases in production and operating cost savings through the replacement or ‘right sizing’ of equipment in the compression and gas processing sections of the plant, the company said.

The Wagoner ‘A’ station is capable of transporting up to 40mmcf/day. Under the current configuration, it is capable of processing 4mmcf/day, with the capacity to upgrade to meet future requirements. The direct cost of processing at the 4mmcf/day rate is approximately $0.31 per mcf.

The company’s wholly-owned subsidiary Eastok Pipeline has also continued to expand the natural gas gathering and water disposal system at EOK South. A total of 19 miles of gathering pipeline is under construction using three separate construction contractors.

An additional 5.5 miles is planned and will commence by mid-April as current projects are completed. Additional plant and system improvements are also underway to increase well production volumes, reduce costs and improve efficiencies of the system.

The expansion of the pipeline infrastructure by Eastok will enable Red Fork to bring 20 new wells into production, bringing the total number of wells currently in production to 49.

In addition, this expanded infrastructure will provide Red Fork with the ability to proceed with its planned drilling program at EOK South. The company will expand the EOK South project in phases of 20 wells.