Rocky Old Man Energy Inc.

June 06, 2007 15:37 ET

Rocky Old Man Energy Inc.: News Release

CALGARY, ALBERTA--(Marketwire - June 6, 2007) - Rocky's (TSX VENTURE:RO) revenues for the quarter ending April 30, 2007 were $446,239 resulting in net income of $222,169. Rocky's production averaged 101 boe per day in the quarter. Rocky's Financial Statements and Management Discussion and Analysis for its quarter ended April 30, 2007 can be viewed on SEDAR.

Rocky participated as to a 35% working interest in the recompletion of a well at Amber, Alberta. Following payout of this well Rocky will have a 67.5% working interest. The well has been cased and is currently shut in due to production and weather related access problems. The well produced for 18 days in February, 2007 at an average rate of approximately 140 boe per day (60 boe per day net to Rocky). Rocky expects that the well will be back on shortly after the access issues are resolved.

Rocky has agreed to farm in on lands in central Alberta with a partner and, subject to satisfying certain conditions, to recomplete or drill one well plus an option well on these lands. Rocky will contribute approximately 13% of the costs for an 18% working interest in these two wells. Rocky has also commenced recompletion of a third central Alberta well on lands Rocky holds with its partner. Rocky will have a 22.5% interest in this well.

Rocky farmed out its interest in eleven sections of land at Red Earth, Alberta. The farmee has committed to drill a test well at no cost to Rocky. Rocky will have a 5-15% royalty on oil, 15% on gas in the spacing unit, convertible to a 28% working interest at payout. Rocky will have a 28% working interest in nine of the farmed sections. If the farmee drills the option well on the remaining two sections, again at no cost to Rocky, Rocky will have a 5-15% royalty on oil, 15% on gas in the spacing unit convertible to a 50% working interest at payout. Rocky will have a 50% working interest in the balance of these two sections.

Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cubic feet of gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Rocky Old Man Energy Inc.
    David Calnan
    (403) 299-9606