Ryland Oil Corporation
TSX VENTURE : RYD

Ryland Oil Corporation

November 12, 2007 08:30 ET

Ryland Subsidiary Named as Party in U.S. Legal Action

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 12, 2007) - Ryland Oil Corporation (the "Company") (TSX VENTURE:RYD) announces that it has been made aware of a legal action commenced in the District Court, City and County of Denver, Colorado, against the Company's wholly owned Canadian subsidiary, Pebble Petroleum Inc. ("Pebble"), as well as eight other defendants, by Zavanna LLC and three affiliated corporations. The other defendants include Eternal Energy Inc., Mr. Brad Colby, Fairway LLC, and Mr. Steven Swanson. The plaintiffs have also named as defendants ABC Corporation, DEF Limited Partnership, and John Doe 1-10, entities unknown to the Company and Pebble. The Company and Pebble learned of the action through one of the defendants. Pebble has not yet been served with the summons and complaint, nor has Pebble or the Company otherwise been contacted by the plaintiffs or their legal counsel.

The plaintiffs allege in their claim that the defendants conspired to misappropriate confidential and proprietary information concerning certain oil and gas prospects which they allege Mr. Swanson acquired during the course of his employment with Zavanna, including information and data respecting a prospect in Saskatchewan which Pebble and Eternal Energy purchased from Fairway in October of 2006 (Pebble was not a subsidiary at that time, the Company having acquired Pebble in May of 2007). The plaintiffs are seeking a wide range of remedies, including unspecified damages and an accounting for all proceeds and profits from the sale of the prospect. The Company believes that the plaintiffs' claim is frivolous, vexatious and without merit. If and when Pebble is formally served with the plaintiffs' summons and complaint, the Company intends to cause Pebble to vigorously defend the action and to seek costs against the plaintiffs in addition to such other remedies as may be available to it.

The Company and Pebble are proceeding with the four well drilling exploration program on the Saskatchewan properties as announced in the Company's news release of November 1, 2007.

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)