Rocky Old Man Energy Inc.

October 31, 2006 18:26 ET

Rocky Old Man Energy Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - Oct. 31, 2006) - Rocky's (TSX VENTURE:RO) production averaged approximately 160 barrels of oil equivalent ("boe") per day in the fourth quarter ended July 31, 2006. Average production doubled as compared to production from the prior quarter (approximately 80 boe per day in the third quarter). Production in the fourth quarter included significant flush production from new wells which came on in the late third and early fourth quarters. In the first quarter production is expected to decrease due to initial production declines.

Rocky has participated in a reentry at Amber which is undergoing testing. Rocky has a 35% working interest and a gross overriding royalty (GORR) before payout in this well and a 67.5% working interest after payout.

A second well was drilled and cased in the current quarter on land Rocky farmed out at Kakwa. Rocky has a 12% royalty interest in this well. This well is being tested and is awaiting tie in.

Two wells await tie in and a seventh well has been licensed on lands Rocky has farmed out at Willesden Green. Rocky has a 5% GORR in each of these wells.

A well has been committed to on lands Rocky farmed out at Obed reserving a 7.5% GORR. This well is now scheduled for early 2007.

A well has been committed to on lands Rocky farmed out at Gift, reserving a convertible overriding royalty before payout and a 40% working interest after payout. This well is scheduled for December 2006.

Rocky has filed its disclosure as required under National Instrument 51-101 ("NI 51-101") based on the results of its independent reserve evaluations conducted by Paddock Lindstrom & Associates Ltd. ("PLA"). The reports were prepared in accordance with NI 51-101 for the year ended July 31, 2006.

Rocky's proved plus probable reserves increased to 951.8 thousand boe from nil last year, while net present value discounted at 10% increased to $6,335,000 from nil. The Corporation did not book reserves in past fiscal periods.

The reserve data provided in this release only represents a portion of the disclosure required under NI 51-101. Additional disclosure and a more detailed summary of reserves and future cash flows based on the PLA Evaluation dated July 31, 2006 may be found on

Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cubic feet of gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Rocky Old Man Energy Inc.
    David Calnan
    (403) 299-9606