posted on May 27, 2009 06:54AM
Edit this title from the Fast Facts Section
|May 27, 2009|
|Ryland Oil Provides Corporate Update|
|VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 27, 2009) - Ryland Oil Corporation (TSX VENTURE:RYD) is pleased to provide an update on its corporate activities and operations.
On April 21, 2009 Ryland announced that it has engaged GMP Securities LP as a financial advisor and agent to assist the Company in reviewing and assessing corporate strategies, which may include a sale or merger of the Company, an asset sale, or a teaming agreement with one or more industry partners. The Company has recently completed a confidential information memorandum respecting its properties, operations and various prospects with potential numbers of wells, which will be sent by GMP to interested parties this week. The Company has also set up an electronic data room which interested parties will be able access after signing a confidentiality agreement. Interested parties will be invited to submit business proposals by June 19, 2009.
The Company's recent operations efforts have focused on evaluating and optimizing production from wells completed in early 2009. The Hardy 2D7-9-3D2-16-04-21W2 is a horizontal well in the Middle Bakken that established production from a new field area. The well was very recently returned to production following installation of a larger pump designed to allow more efficient production of the reservoir. Production rates increased from 48 barrels of oil per day ("BOPD") to 100-110 BOPD. The Company is very encouraged by this initial increase in production rates resulting from larger pumping capacity. Further optimization work may be conducted after monitoring well performance for a period. Management believes that results from the Hardy well to date are indicative of a conventional quality reservoir. The Company holds a 100% working interest in 12,000 leasehold acres in the Hardy prospect, with up to 60 net well locations.
The Roncott 2A1-6-2D1-31-05-24W2 is also a Middle Bakken horizontal well which was drilled approximately two miles east of the established Roncott Field. Several minor refinements to the multi-stage fracture stimulation treatment appear to have yielded significant improvement in the well performance relative to previous completions in the area. Current well production is 58 BOPD with very limited reservoir drawdown. The Company will be completing a workover within the next week to further increase the pump capacity on this well. Following a brief evaluation period of the results of increasing the size of the pump, plans are in place to conduct a similar completion on the recently drilled Roncott 1A-1-6-1D-16-6-06-24W2 well and a re-stimulation treatment of the Roncott 4B-4-36-3C-13-36-05-25W2 well. The workover/completion program is contingent upon Ryland raising additional working capital.
Total net production from all of Ryland's producing wells is approximately 210-220 BOPD at this time. Management believes that with limited capital expenditures covering the workover/completion program described above, production could be increased by up to 140 BOPD.
RYLAND OIL CORPORATION
Gerald J. Shields, President
Issued and Outstanding: 193,576,106