Roadrunner Oil & Gas Inc.

January 27, 2010 09:25 ET

CORRECTION FROM SOURCE: Roadrunner Provides Operational Update, Announces New Director and Officer and Granting of Stock Options

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 27, 2010) - A Correction from Source is being issued with respect to the release sent out on January 26, 2010 at 3:57 pm EDT. The first paragraph clarifies that the production reference is 70 boe/d for both referenced wells combined (not 70 boe/d for each well). The complete and corrected version follows.

Roadrunner Oil & Gas Inc. ("Roadrunner" or "the Company") (TSX VENTURE:ROA) is pleased to announce an application for good production practice (GPP) in the Armada area of southern Alberta has now been approved by the ERCB. This approval will enable Roadrunner to reactivate its two existing oil wells at Armada, which were producing in excess of 70 barrels of oil equivalent (boe) per day combined, net to the Company, of light oil and associated gas prior to being shut in pending approval of the application. In addition, Roadrunner intends to drill two further development infill wells at Armada, with the first well expected to spud in early February subject to rig availability, followed immediately thereafter by the second well.

Roadrunner is also pleased to announce that Pat Oliver has been appointed to the Board of Directors of Roadrunner. Mr. Oliver is a Chartered Accountant with over 20 years of experience in the management and financing of junior oil and gas companies. Mr. Oliver is currently President and CEO of Birchill Exploration Corp., a privately held junior oil and gas company operating in Alberta. Prior thereto Mr. Oliver, in his role as VP Finance and CFO, was a key contributor to the success of predecessor companies, Birchill Resources Ltd. and Birchill Energy Ltd. Mr. Oliver has also held senior finance positions with a number of publicly traded oil and gas companies.

In addition, Christine Robertson has joined the Company as Vice President of Engineering and Chief Operating Officer. Ms. Robertson is a professional engineer with approximately 20 years of industry experience. Ms Robertson started her career with PanCanadian Petroleum and has held senior engineering and operational positions with Canadian Forest Oil, Forte Oil and successors and with Sabretooth Energy as Vice President Operations and COO.

As Roadrunner's Articles only allow for a maximum of six Directors at this time, Michael J. Kryczka has agreed to step down as a Director and has tendered his resignation to allow for the appointment of Mr. Oliver. It is intended that Mr. Kryczka will stand for election as a Director of Roadrunner at the Company's Annual General Meeting in the spring, at which time additional Directors may be added. Mr. Kryczka will continue to act as Vice President, Business Development and Chief Financial Officer.

Roadrunner also today announced that the Board of Directors has approved the grant of stock options to certain directors and senior officers, consultants and employees of the Company under the Stock Option Plan previously approved by the TSX Venture Exchange.

Roadrunner granted options to acquire an aggregate of 12,300,000 common shares of the Company at an exercise price of $0.17 per common share. The options will expire on January 22, 2015. 

About Roadrunner Oil & Gas

With operations based in Calgary, Alberta, Roadrunner Oil & Gas Inc. is a TSX-V Tier 2 corporation. Through its wholly owned subsidiary, Bowood Energy Ltd., the Company is engaged in the acquisition, exploration, development, and production of oil and gas resources. Projects are currently situated in the Provinces of Alberta and Saskatchewan.

Certain statements contained in this press release constitute forward-looking statements and forward looking information (the "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "budget", "plan", "guidance", "continue", "estimate", "expect", "forecast", "may", "will", "project", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions. In particular, forward-looking statements in this press release include, but are not limited to, statements with respect to: the timing of the Annual General Meeting of the Company and the anticipated identity and number of nominees for Directors of the Company to be elected thereat, the expiry date of the stock options issued by the Company, drilling plans and timing of drilling, the timing of bringing shut-in wells back onto production, timing of re-completion and tie-in of wells, anticipated or expected production rates and oil and natural gas production levels. 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. We cannot guarantee future results, level of activity, performance or achievements. Consequently, there is no representation that the actual results achieved will be the same, in whole or in part, as those set out in the forward-looking statements.

Some of the risks and other factors that could cause results to differ materially from those expressed in the forward-looking statements include, but are not limited to: general economic conditions in Canada, the United States and globally; industry conditions, including fluctuations in the prices of oil and natural gas; governmental regulation of the oil and gas industry, including environmental regulation; geological, technical, drilling and processing problems and other difficulties in producing reserves; unanticipated operating events or performance which can reduce production or cause production to be shut in or delayed; failure to install pipeline facilities as and when expected; failure to obtain industry partner and other third party consents and approvals, when required; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for oil and natural gas; liabilities inherent in oil and natural gas operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands, skilled personnel and supplies; incorrect assessments of the value of acquisitions; geological, technical, drilling, processing and transportation problems; changes in tax laws and incentive programs relating to the oil and gas industry; failure to realize the anticipated benefits of acquisitions and dispositions; and the other factors described in our public filings available at Readers are cautioned that this list of risk factors should not be construed as exhaustive.

The forward-looking statements contained in this document are expressly qualified by this cautionary statement. We undertake no duty to update any of the forward-looking statements to conform such statements to actual results or to changes in our expectations except as otherwise required by applicable securities legislation.

Disclosure provided herein in respect of boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl 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 the contents of this press release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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