Ryland Oil Corporation
TSX VENTURE : RYD

Ryland Oil Corporation

June 13, 2008 03:00 ET

Ryland Acquires Additional Crown PNG Licenses

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 13, 2008) - Ryland Oil Corporation (TSX VENTURE:RYD) is pleased to announce that it has acquired a 100% working interest in additional Saskatchewan crown petroleum and natural gas licenses covering 45,980 gross and net acres of land. The licenses are located in southeast Saskatchewan and are adjacent to Ryland's current acreage. The acquisition has increased the Company's total gross and net holdings in southeast Saskatchewan and North Dakota to approximately 360,000 acres. Ryland's additional acreage was acquired at a cost of approximately CDN$7.4 million, or $161 per acre.

Said Dick Findley, Chairman of Ryland: "We are very pleased to have been the successful bidder on this additional acreage. Our average cost per acre for our holdings in southeast Saskatchewan now stands at approximately $84. The average cost per acre of licenses sold in southeast Saskatchewan in the June 9, 2008 Crown sale in the vicinity of the Company's existing lands was $467 per acre. One block of 22,000 acres was purchased for $37,000,000 or around $1,700 an acre. Considering the high level of Bakken drilling activity resulting in new production in the area and the dramatic rise in prices being paid for acreage, we feel we are in a very enviable position."

Ryland is currently preparing applications for permits to drill 5 horizontal wells to test the Bakken Formation and 8 wells targeting additional zones in various locations on its southeast Saskatchewan acreage. The Company expects to commence this next phase of its drill program in late July, 2008.

RYLAND OIL CORPORATION

Gerald J. Shields, President

Issued and Outstanding: 161,929,906

The TSX Venture Exchange has not reviewed and does not accept any responsibility for the adequacy or accuracy of this news release, and no regulatory authority has approved or disapproved the information contained herein.

Contact Information

  • Ryland Oil Corporation
    Mr. Ken Tangen
    Investor Relations
    (604) 639-4474 or 1-877-811-4518
    Website: www.rylandoil.com