Ranger Energy Ltd.

March 31, 2010 09:03 ET

Ranger Energy Signs Letter of Intent to Acquire Cardium and Viking Oil Assets

CALGARY, ALBERTA--(Marketwire - March 31, 2010) - Ranger Energy Ltd. (the "Corporation") (TSX VENTURE:RGG.H) is pleased to report that it has signed a binding letter of intent, dated March 30, 2010, with an Alberta based private company, ("Privateco") to acquire through a farm in arrangement a 100% interest in a Cardium and Viking oil project in Alberta. The lands total 8.75 sections (100% working interest) and are located in the prolific light oil Pembina field with well established Cardium and Viking production. Significant vertical well control exists to define the project areas and multiple drilling locations have already been identified. Other operators have found multi-stage fracing in horizontal wells to be highly effective on nearby lands. The agreement commits Ranger to a 5 horizontal well drilling program and was paid for with the issuance of 2,600,000 common shares and 1,000,000 performance shares in the Corporation and the issuance of a non-convertible promissory note to the Privateco in the amount of $7.4M.

The Viking prospect area, which includes a 100% working interest in 7.25 sections, is inside and adjacent to a very prolific Viking light gravity oil field, and includes lands which have historically produced from the Viking formation. Horizontal wells with multi-stage fracing technology will exploit large reserves of by-passed oil in the field where vertical wells have established pay thicknesses averaging 7 metres and reaching 13 metres in thickness. The Corporation and its partner are finalizing details of the drilling program which is intended to begin in the near future.

The Cardium prospect area, which includes a 100% working interest in 1.5 sections, is an extension of the East Pembina unit. Several prominent operators in this immediate area have already been successful applying horizontal multi-frac well technology to the Cardium resource play.

The Corporation is also pleased to announce the appointment of Charidy Lazorko as Chief Financial Officer. Charidy Lazorko is a Certified General Accountant with over 6 years experience assisting public companies with financial services.

As well, the Company is pleased to announce that Mr. Paul Clark has agreed to join the Board of Directors. Mr. Clark is Land Manager and Counsel of Bounty Developments Ltd. Mr. Clark holds a B.A. from Dalhousie University and a LL.B. from the University of Alberta. He has practiced law in Calgary, Alberta since 1986. He is a member of the Law Society of Alberta, the Canadian Bar Association and the Canadian Association of Petroleum Landmen and holds the designation of Professional Landman (P. Land).

Ranger is also announcing that it intends to complete a non-brokered private placement. The private placement is expected to consist of up to 10,000,000 units to be offered at $0.20 per unit. Each unit will consist of one common share of Ranger and one half common share purchase warrant. Each warrant will entitle the holder thereof to purchase one common share at any time for a period of 12 months following the closing date at a price of $0.30 per common share. The proceeds of the private placement will be used for evaluation and development of the Viking and Cardium plays, and for general working capital purposes. Ranger will pay a commission of cash in relation to this placement. The private placement is expected to close on or before April 30, 2010.

The Corporation will grant, subject to regulatory approval, 2,225,000 options to purchase common shares of Ranger ("Options") to the officers, directors and key consultants at an exercise price of $0.20 and with an expiry date of March 30, 2015. 

Ranger has determined that exemptions from the various requirements of the TSX Venture Exchange Policy 5.9 are available for the grant of these Options.

The above is subject to regulatory acceptance under the policies of the TSX Venture Exchange.

Neither the 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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