Ryland Announces Farm-Out Agreements With TriAxon Resources Ltd. to Test Bakken Formation

VANCOUVER, BRITISH COLUMBIA--(Marketwire - October 03, 2008) - Ryland Oil Corporation (TSX VENTURE: RYD) is pleased to announce that, through its wholly owned subsidiary Pebble Petroleum Inc., it has entered into two farm-out agreements with Calgary-based TriAxon Resources Ltd. ("TriAxon") respecting a total of 28 sections of Ryland's acreage adjacent to the Flat Lake Bakken oil field in southeast Saskatchewan. Under one agreement, TriAxon is required to spud a test well by December 31, 2008, subject to rig availability, at a location of its choice on 11 sections of Ryland acreage comprising the farm-out lands. Triaxon may elect to drill either a vertical stratigraphic well or a horizontal well to test the Bakken formation. Ryland has the option to participate in the test well as to 20% of the costs, in which event it will retain a 60% working interest in the well with TriAxon earning a 40% working interest in the well. If Ryland elects not to participate, TriAxon must pay 100% of the costs to drill, complete and equip to earn a 50% working interest in the well. In the event a vertical test well is drilled, TriAxon's earning will be limited to 5 of the 11 section farm-out lands and it will have a continuous right to drill, under the same terms described above, and earn the balance of the farm-out lands. In the event the farm-out test well is a horizontal well, Triaxon will earn as described above in all 11 sections comprising the farm-out lands. In any event, TriAxon's working interest will be restricted to petroleum substances within the Bakken Formation, with Ryland retaining a 100% gross and net working interest in all other zones. After drilling the initial test well Triaxon also has the option to drill an additional well on a location of its choice to earn in another 11 section farm-out block. The percentage working interest and the number of sections it can earn on the option lands will be subject to the same terms as described above. Ryland's second farm-out agreement with TriAxon requires TriAxon to spud a test well by December 31, 2008, subject to rig availability, on 6 sections comprising the farmout lands. As with the other agreement, Triaxon may elect drill either a vertical stratigraphic well or a horizontal well to test the Bakken formation. TriAxon must pay 100% of the costs to drill, complete and equip the well in order to earn a 70% working interest, with Ryland retaining the other 30%. If TriAxon drills a vertical test well, it will earn a 70% working interest in 4 of the 6 sections with the option to drill an additional well to the remaining unearned sections. If TriAxon drills a horizontal Bakken test well, it will earn a 70% working interest in all 6 sections comprising the farm-out lands. In either event, TriAxon's working interest will be restricted to petroleum substances within the Bakken Formation, with Ryland retaining a 100% gross and net working interest in all other zones. Said Ryland Chairman Dick Findley, "We are very pleased to have TriAxon as a partner. With approximately 572 sections of land to explore and develop, it makes good business sense for Ryland to look for strategic partners to assist in accelerating our exploration and development program. By farming out to TriAxon we are gaining access to additional rigs and drilling expertise while better leveraging our capital. TriAxon is an established and successful operator in the Bakken Formation in southeast Saskatchewan, and they concentrate exclusively on developing low permeability reservoirs with horizontal, multi-stage fracture stimulated wells. Their expertise in the application of this technology in the Bakken will be very helpful in the continued exploitation of our extensive holdings." 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. Contacts: Ryland Oil Corporation Mr. Jim Welykochy Vice-President Corporate Finance (403) 861-1242 Website: www.rylandoil.com