Provides Update on Drilling Activities and 2009 Plans
posted on Jan 30, 2009 03:05AM
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|January 30, 2009|
|Ryland Oil Provides Update on Drilling Activities and 2009 Plans|
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 30, 2009) - Ryland Oil Corporation (TSX VENTURE:RYD) provides the following update on its drilling program respecting its southeastern Saskatchewan properties.
Ryland completed drilling on the current phase of Bakken evaluation wells on its acreage position in early January, despite considerable delays encountered due to severe winter weather. The focus of the work has been on expanding the productive area around the Roncott field. The Company's current production from the Roncott area is principally from two horizontal Bakken wells. One of the wells, which was put on pump in late December, 2008, is currently producing approximately 85 bopd. The second well, completed shortly thereafter, is showing a steadily increasing oil cut as frac fluid is recovered. The Company is also receiving minor contributions to its production from one of the horizontal wells drilled earlier in 2008, as well as several vertical wells in the main Roncott field area acquired through the purchase of Viceroy Resources Ltd., which contribute 20 to 25 bopd. In total, Ryland is currently producing approximately 145 barrels of oil per day from its Bakken wells in the Roncott field. Ryland is very encouraged by these results to date, having regard to its success in achieving production from horizontal wells in the Bakken formation and the large number of potential well targets on its sizeable acreage position.
Three additional horizontal wells in the Roncott area have been drilled and cased and are in various stages of completion and testing, and are expected to be on production in February.
The Company has also completed a horizontal well in the Hardy area with a multistage fracture treatment, which yielded positive oil results in the initial flowback after the stimulation. The well is currently being equipped to pump and is projected to be on production in the first week of February, subject to favourable weather conditions.
Triaxon Resources has drilled and stimulated its first earning well on the farmout acreage in the Flat Lake area of Ryland's properties. The well is being equipped to pump and is expected to be on production in approximately two weeks, weather permitting. An earlier well was abandoned due to mechanical problems prior to reaching the reservoir target, and a replacement well is currently being evaluated.
Ryland also announces that in its news release dated April 23, 2008 disclosing the material information contained in its 51-101F1 - Statement of Reserves Data and other Oil and Gas Information dated April 1, 2008, the Company used pseudonyms for the geological zones referred to in the report. The Company also filed a material change report dated April 30, 2008 respecting the 51-101F1 report wherein the same pseudonyms were used, as well as a confidential material change report wherein the proper names were used. Ryland used pseudonyms so that the zones which were of interest to the Company were not disclosed during the time in which it was seeking to acquire additional Saskatchewan Crown licenses. Ryland has completed its license acquisition program and, therefore, in accordance with applicable securities regulations, the Company is now required to disclose the actual names of the geological zones in question. The following is a list of the pseudonyms used by the Company to identify the geological zones in its previous disclosure and the commonly accepted names for those zones:
PSEUDONYM FOR ZONE COMMON NAME FOR ZONE Upper Devonian A - Duperow Zone Upper Devonian B - Sanish Zone Mississippian A - Middle Bakken Zone Mississippian B - Lower Fractured Interval (Lodgepole) Mississippian C - Middle Fractured Interval (Lodgepole) Mississippian D - Minton Lodgepole Zone Mississippian E - Main Lodgepole Zone Mississippian F - Upper Porosity Lodgepole Zone Mississippian G - Upper Fractured Interval (Lodgepole) Mississippian H - Midale Zone Cretaceous - Upper Colorado and Second White Specks Zones
Gerald J. Shields, President
Issued and Outstanding: 193,576,106