Ryland Expands Its Roncott Bakken Play Holdings, Acquires Additional
Saskatchewan Crown PNG Licenses
VANCOUVER, BRITISH COLUMBIA--(Marketwire - October 14, 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 and leases covering 26,286 gross
and net acres of land. The licenses and leases, which include all
rights, are located in southeast Saskatchewan and are adjacent to
Ryland's current acreage.
Said Dick Findley, Chairman of Ryland: "In this sale we targeted
certain very specific acreage, largely because of its Bakken
potential, and are pleased with the additional holdings we acquired.
Our Roncott Bakken Play has become an important focus of our current
drilling program. Through our recent acquisition of Viceroy Resources
Ltd, Ryland now operates the Roncott Bakken Field. The Roncott Field,
discovered in 1956 has had some of the best vertical Bakken
production in the entire Williston Basin (both in the U.S. and
Saskatchewan), greatly exceeding production from vertical wells in
the Saskatchewan Viewfield area. The Viceroy acquisition was not made
for its modest production but as a strategic move to acquire up to 22
horizontal Bakken drilling locations (11 net locations) directly
offsetting excellent proven vertical production as well as multiple
surrounding wells exhibiting good porosity and oil saturations
similar to the historic wells in the pool which were productive."
Ryland's additional Crown acreage was acquired at a total cost of
CDN$767, 300 or $29.19 per acre. The acquisition has increased the
Company's total holdings in Southeast Saskatchewan and North Dakota
to approximately 394,446 net acres. With the addition of these new
crown licenses, Ryland estimates that it now owns up to 80 net
drilling locations surrounding the Roncott Pool. Two licenses
immediately adjacent to Ryland's Roncott holdings went for
approximately $2100/acre (13,257 acres) and $1800/acre (11,500
acres). Ryland's average cost per acre for its holdings in southeast
Saskatchewan now stands at approximately $85. "This sale has
highlighted once again the value of Ryland's acreage position,"
continued Mr. Findley. "We believe Ryland's current market cap is
well below our land value alone, considering the high level of Bakken
drilling activity resulting in new production in the area and the
dramatic rise in prices being paid for Bakken acreage." Ryland is
currently drilling its third horizontal well in the Roncott area and
is very encouraged by its initial results. Ryland has already applied
for 4 additional horizontal drilling permits in this area.
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 Development
(403) 861-1242
Website: www.rylandoil.com
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