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
RYLAND OIL CORPORATION
Gerald J. Shields, President
Issued and Outstanding: 193,576,106
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
Ryland Oil Corporation
Vice President Corporate Development
This announcement was originally distributed by Hugin. The issuer is
solely responsible for the content of this announcement.