SOURCE: Riverdale Oil and Gas Corporation

Riverdale Oil and Gas Corporation

May 17, 2011 09:00 ET

Riverdale Oil and Gas Corporation (PINKSHEETS: RVDO) Acquires Oil and Gas Interests

AUSTIN, TX--(Marketwire - May 17, 2011) - Riverdale Oil and Gas Corporation (PINKSHEETS: RVDO) has recently acquired a 1.667% carried working interest (CWI) in the 60 acre Lampley Lease in Lavaca County, Texas. A well is scheduled to be drilled within the next two months to a depth of 6000 feet, based on 3D seismic evaluation. The carried working interest provides Riverdale an interest in the well without the cost for the development of the well. The primary objective of the well is a prolific gas sand in the Yegua formation. The geological evaluation and historical production of the Yegua sands indicate that the well could have the capability of producing two billion cubic feet (2 BCF) of gas with 12,000 barrels of condensate. Even though Riverdale's interest appears small, the rate of return can be very significant, as there are no development costs, which could result in a 10:1 Return on Investment.

Currently, Riverdale is completing the funding on its Foster #7 Development Project in Jim Wells County, Texas, which will be based on 3D seismic and a proprietary Neural Network Program, which has been shown to enhance standard 3D seismic analysis. We anticipate drilling an 8,500 foot well during the 4th quarter , 2011, that could penetrate 16 potential reservoirs that have been identified by the 5 existing Yegua wells and 1 shallow Frio sand well under our 631.82 acre Foster Lease. There could be an additional 8 to 10 development wells for future drilling.

Riverdale is aggressively developing new opportunities for asset development through its generation and partial sale of oil and gas prospects; investment in high-quality 3D seismic prospects; and, acquisition of oil and gas production. Our primary objective is to create a strong asset base at minimal cost.

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