SOURCE: Riverdale Oil and Gas Corp

May 22, 2007 09:00 ET

Riverdale Oil and Gas Corp. Announces Its Natural Gas Development Program in the Gulf Coast Region of Texas

The Company Will Utilize 3-D Seismic Analysis in Exploiting Reserves Estimated to Add $22,500,000 of Reserves to Its Reserve Base

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- May 22, 2007 -- Riverdale Oil and Gas Corp (PINKSHEETS: RVDO) (www.riverdaleoilcorp.com), announced today a natural gas program, to develop reserves trapped in the shallow Frio and Miocene sands of the gulf coast of Texas. The Company is in final negotiations with Nettlecombe Oil Co., Inc., a geophysical consulting company located in Houston, Texas, to provide 3D seismic bright spot technology on this prospect. Nettlecombe has been successful in the identification of shallow Frio and Miocene gas sand production on the gulf coast, and its technology has had a 92.3% success rate in those sands over the past 15 years. Nettlecombe will also utilize on these prospects, in recent addition of state of the art process technology, utilizing Neural Networks and Artificial Intelligence, which are powerful extensions to its 3D seismic analysis.

One prospect area encompasses acreage with several separate bright spot locations, with some locations having multiple pay potential. The depths of the prospective gas sands range from 2100 to 5000 feet; and, cover an area from 30 to 100 acres each. The estimated gas reserve for 6 projected gas sands could be as much as 3,000,000 MCF. At a market price of $7.50 per MCF, the gross revenue would be $22,500,000. The estimated development expense is $1,500,000.

The Company is extremely excited to have the opportunity to develop prospects that are based on state of the art science; situated in known areas of economic success; and, are very cost effective to drill and complete. The Company intends to begin development of these prospects in the third quarter of 2007.

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 own 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