Ryland Oil Corporation

Ryland Oil Corporation

October 24, 2007 03:05 ET

Ryland Oil Corporation Announces Asset Acquisition and Drilling Update

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 24, 2007) - Ryland Oil Corporation (the "Company") (TSX VENTURE:RYD) announces that it has entered into an agreement to acquire certain proven productive and exploratory assets from Jadex Energy Ltd., a private Calgary based corporation. The Jadex properties are comprised of two blocks of Crown PNG leases in Saskatchewan totaling 7,998 acres. The properties are contiguous to the Company's existing leasehold interests and will increase the Company's total acreage in Saskatchewan to 299,231 acres contained in a block spanning approximately 85 miles in length and an average of 10 miles in width. The asset purchase includes one wellbore with established production from the Company's objective formation. The Company is paying $1,200,000 cash for a 100% working interest in the properties. Jadex will retain a 1% GORR on one block of acreage and a 2% GORR on the second block. Completion of the acquisition is subject to the satisfaction of a number of standard conditions precedent, including completion of a title review and surface inspection. The closing is expected to take place by October 31, 2007.

The acquisition of the Jadex assets will provide a valuable means to enhance the evaluation of the Company's holdings. Current plans call for fracture stimulation of the newly acquired wellbore to improve the productivity from the objective formation. This work is expected to commence in early November, 2007. The Company believes that successful recompletion of this well will confirm additional development drilling opportunities on the Jadex acreage and the Company's neighbouring properties.

As previously announced, Ryland conducted an initial three well evaluation program this summer on its Saskatchewan properties with the primary objective of collecting preliminary data to help characterize the Company's initial acreage holdings. Two vertical wells and a short horizontal well have been drilled on the northwestern portion of the acreage holding. Those wells are currently undergoing evaluation and analysis.

Based on its results to date, the Company has planned an additional four well drilling program, slated to begin in Q4, 2007, for the purpose of further testing of the objective formation on the southeastern extent of the Company's leasehold block. The preliminary evaluation program has also led to the identification of three more prospective horizons that will be assessed as part of this drilling program. The Company continues to be optimistic about the potential for significant development drilling in 2008.

Issued and Outstanding: 108,954,259

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
    Gerald J. Shields
    (604) 742-2528
    (604) 736-5004 (FAX)