SOURCE: Riverdale Oil and Gas Corp

May 01, 2007 09:00 ET

Riverdale Oil and Gas Corp Completes Entry Into the Public Market as Part of Its Continuing Growth Strategy

Company to Exploit Its 203,605 Barrels of Oil and 4.05BCF of Natural Gas Proven Reserves as a Public Entity

Proven and Probable Reserve Total $222,479,860 for New Public Company

HUNTINGTON BEACH, CA -- (MARKET WIRE) -- May 1, 2007 -- Riverdale Oil and Gas Corp (PINKSHEETS: RVDO) (www.riverdaleoilcorp.com) is pleased to announce its entry into the public market, as it begins trading today under the symbol RVDO.PK.

Riverdale Oil and Gas Corp ("Riverdale or the "Company") 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. Proven and probable reserves equate to over $12 per share of value based upon the Company's outstanding shares.

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. The Company is currently in final negotiations with leaseholders in Texas on these additional lease and reserve acquisitions. The Company expects to conduct the majority of its operations in the states of California and Texas.

After the deployment of the $5 million in its projected drilling and acquisition program the Company projects gross revenues of 3,559,500 in 2007, rising to $9,369,000 in 2008. Projected net cash flow, before additional expenditures on acquisitions and additional drilling is expected to reach $3,325,000 in 2007 and $8,871,000 in 2008.

Brian Kingsfield in describing the Company's entry into the public market stated, "Our goal since the Company was formed was to enter the public market at the appropriate time. We feel that this is the right time, since we have spent the past two years accumulating our lease acreage, which has significant proven reserves, and it is now time to exploit those reserves to create significant value for our shareholders. We will use our public market status to attract additional senior management with significant oil and gas experience, and to make acquisitions of small to medium sized oil and gas companies, who want to be part of a larger company. Our intent is to build the Company through the proper deployment of capital and strategic acquisitions to significantly increase our proven and probable reserves in 2007 and 2008, and look for an appropriate way to maximize shareholders' value in early 2009."

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.

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Contact Information

  • CONTACT INFORMATION

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

    Investor Relations
    PDG/ Ron Herzfelt
    800-516-9661