Ryland Oil Corporation
TSX VENTURE : RYD

Ryland Oil Corporation

November 01, 2007 19:06 ET

Ryland Oil Corporation Announces Closing of Asset Acquisition

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 1, 2007) - Ryland Oil Corporation (the "Company") (TSX VENTURE:RYD) is pleased to announce that it has completed the acquisition of certain proven productive and exploratory assets from Jadex Energy Ltd. ("Jadex") and 1164099 Alberta Ltd. ("1164099"). The properties, acquired by Ryland's wholly owned subsidiary Pebble Petroleum Inc., are comprised of two blocks of Crown PNG leases in Saskatchewan totaling 7,998 acres. The properties are contiguous to the Company's existing leasehold interests and have increased the Company's total acreage in Saskatchewan to 299,231 acres contained in a block spanning approximately 85 miles in length and an average of 10 miles in width. The asset purchase included one wellbore with established production from the Company's objective formation. The Company paid $1,200,000 cash for a 100% working interest in the properties. In addition, the sellers have retained a 1% gross overriding royalty on one block of acreage and a 2% GORR on the second block.

The acquisition of the assets provides a valuable means to enhance the evaluation of the Company's holdings. Current plans call for fracture stimulation of the newly acquired wellbore to improve the productivity from the objective formation. This work is expected to commence within the next two weeks. The Company believes that successful recompletion of this well will confirm additional development drilling opportunities on both the newly acquired acreage and the Company's adjacent properties.

As previously announced, the Company has also planned an additional four well drilling program, slated to begin in mid-November, for the purpose of further testing of the objective formation on the southeastern extent of the Company's leasehold block. The preliminary evaluation program has also led to the identification of three more prospective horizons that will be assessed as part of this drilling program. The Company continues to be optimistic about the potential for significant development drilling in 2008.

Shares Issued and Outstanding: 108,954,259

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this news release, and no regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Ryland Oil Corporation
    Gerald J. Shields
    President
    (604) 742-2528
    (604) 736-5004 (FAX)