SOURCE: Riverdale Oil and Gas Corp.

May 15, 2007 09:00 ET

Riverdale Oil and Gas Corp. Announces the Completion of the Grelling #1 Well Situated in Zavala Co., Texas

Company Expects a Targeted $497,250 Net Revenue Before Operating Expense and Tax From Its $18,000 Investment

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- May 15, 2007 -- Riverdale Oil and Gas Corp. (PINKSHEETS: RVDO) (www.riverdaleoilcorp.com) announced today that the Company has recently completed its re-entry of the Grelling well located in Zavala County, Texas. The Company owns a 13% working interest in the recently re-entered Grelling well, approximately 80 miles to the southwest of San Antonio, Texas. The Grelling well was initially drilled in 1978, and became the discovery well for the Louie Field. The well had mechanical difficulties from the start, due to a poor cement completion; and, the well was completed in a low permeable section at the very top of the Elaine Sand formation at 4153 feet. Despite the poor completion technique, the well produced a total of 1440 barrels of oil and 7267 MCF of gas in its one-year productive life.

The highly prolific Elaine Sand, of the Cretaceous Age, has been the major target for oil and gas production in Zavala County. The Grelling well discovered an estimated 60 acre fault block, and proved at least 29 feet of oil column as defined by the full section cores and open hole electric logging. From the subsurface geologic data, it is estimated that the Grelling fault block has 576,000 barrels of Stock Tank Oil in Place (STOIP). At an ultimate recovery of 15%, there could be as much as 85,000 barrels of oil produced.

The operator of the Grelling well, Property Development Group, Inc., is currently installing production equipment, and expects to have the well in production in the next two weeks, and will have a potential test for the well, once the well can clean and stabilize.

There are three (3) Escondido Sand gas zones that are also in the Grelling well bore, behind cemented casing, at 2500 to 2650 feet in depth. The Company estimates that these zones could potentially contain as much as 300,000 MCF of proven reserves with an estimated production of 100 MCF per day of gas, or approximately $15,000 per month, per gas zone. Each zone would be produced separately, starting at the lowest zone first and subsequent zones would be produced into the future as production declined from the producing sand. These gas sands are an added value to the revenue stream and provide a long-term production opportunity for the Grelling well, once the Elaine Sand has reached its economic limit.

The Company is excited about the development of these producing reserves through the expenditure of extremely low development expense. The Company considers the risk to reward basis for this type of re-entry project to be highly profitable and plans to continue to search for similar prospects, as well as exploiting its existing leases through similar re-working and re-completion operations. Such re-working and re-completion projects, which are often overlooked by larger participants in the oil and gas industry, are the focus of the Company's current strategic plan of obtaining cash flow and reserves which are a multiple of many times invested capital.

ABOUT RIVERDALE OIL AND GAS CORP.

Riverdale was formed in August 2005 to engage in the acquisition of currently producing properties, leases with proven reserves, and the exploration, development and production of oil and natural gas properties. The principal assets of the Company are composed of: (i) a 75.00% working interest (52.50% net revenue interest) in five existing wells (the Foster Workover) located on the Foster Lease in Jim Wells County, Texas consisting of 600 acres with additional drill sites; (ii) a 37.50% working interest (26.25% net revenue interest) in one existing well (the Koomey #2) located in Waller County, Texas; (iii) a 5.50% working interest (3.85% net revenue interest) in 2 existing wells (the Koomey #4 and Koomey #5) located in Waller County, Texas; (iv) a 5% working interest (5% net revenue interest) in a salt water disposal well (the Koomey #1) on one acre located in Waller County, Texas; and (v) a 75% working interest (52.50% net revenue interest) in 2 existing wells (the Bains #A-1 and the Vie-Del #4-1) and all related equipment (i.e., tanks, wellhead equipment, etc.), which covers a total of 480 acres and is located within the S.E. Raisin City Oil Field region of Fresno County, California.


The Company currently owns working interests in a total of 10 existing wells and 1 salt-water disposal well located in California and Texas. Based upon independent geological and engineering reports, the Company currently holds proven reserves of $42,391,300 and probable reserves of $180,088,560.

The Company plans to deploy $5 million in 2007 to continue its exploration program on the leases that it owns, and to acquire other existing production, drilling and development of high potential exploratory prospects, as well as lower-risk prospects involving development wells within mature fields with a production history, step-out exploration in areas of existing production, as well as recompletions and workovers of existing wells.

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FORWARD-LOOKING STATEMENT: This press release contains forward-looking statements, including expected industry patterns and other financial and business results that involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied by this press release. Such risk factors include, among others: the historic volatility associated with the oil and gas industry; the rising costs associated with acquiring oil and gas leases; ability to retain key employees; political stability or instability, which can affect oil and gas price, and the general risks associated with the drilling and production of oil and gas well in the United States. Actual results may differ materially from those contained in the forward-looking statements in this press release.

Contact Information

  • CONTACT INFORMATION:

    Corporate Inquiries
    LJ Sabean
    www.riverdaleoilcorp.com
    800-748-5035

    Operations:
    Property Development Group, Inc.
    Ron Herzfeld
    800-516-9661