Rockyview Energy Inc.

Rockyview Energy Inc.

January 19, 2006 18:23 ET

Rockyview Energy Announces 56-Section Farm-In Deal in Core Area

CALGARY, ALBERTA--(CCNMatthews - Jan. 19, 2006) - Rockyview Energy Inc. (TSX:RVE) ("Rockyview" or the "Company") has executed a farm-in agreement with a major energy trust in its core area of Thunder/Neerlandia, in Central Alberta.

The terms of the agreement grant Rockyview access to 56 net sections of Crown mineral rights (36,000 net acres) containing multi-zone natural gas potential. Primary targets will be the Lower Cretaceous and Mississippian formations. Rockyview already has more than 18,000 net undeveloped acres in the immediate vicinity of the farm-in lands.

Rockyview has committed to drill four wells as part of the agreement, with drilling of the first two wells to begin on or before March 31, 2006 and the second two wells by July 15, 2006. Rockyview will pay 100% of the drilling and completion costs of each well and will earn a 60% working interest in the section on which each well is located. In addition, Rockyview will earn a 60% working interest in an additional section of land for each well drilled. Upon completion of the four well commitment, the Company will have ongoing options to further earn lands on identical terms. The terms of the agreement also allow Rockyview to have access to the farmor's seismic database on and within one mile of the farm-in lands.

Reader Advisory

Forward Looking Statements - Certain information set forth in this news release, including management's assessment of future plans, contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond management's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, risks associated with the uncertainty of reserve estimates and currency fluctuations. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements.

Boes may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. This conversion factor is an industry accepted norm and is not based on either energy content or current prices.

The Toronto Stock Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • Rockyview Energy Inc.
    Steven Cloutier
    President & Chief Executive Officer
    (403) 538-5000
    Rockyview Energy Inc.
    Alan MacDonald
    Vice President, Finance & Chief Financial Officer
    (403) 538-5000
    (403) 538-5050 (FAX)