Rider Resources Ltd. - Impact of Alberta New Royalty Framework



    CALGARY, Oct. 29 /CNW/ - On October 25, 2007, the Government of Alberta
released its much anticipated New Royalty Framework ("NRF"). The NRF was the
government's response to a report issued September 18, 2007 by the Alberta
Royalty Review Panel ("ARRP"), which was commissioned by the Government of
Alberta to perform a review of the province's royalty system to, in their
words, ensure that the people of Alberta were receiving their "Fair Share" for
the resources being extracted by the oil and gas industry.
    Rider has reviewed the modifications proposed by the Government of
Alberta to its royalty program to take effect on January 1, 2009. While more
detailed analysis is ongoing we wish to make the following observations.

    Net Asset Value
    ---------------
    The proposed royalty changes are very sensitive to production rate and
natural gas price. Rider has a wide range of natural gas wells with both lower
and higher rates of production. The higher rate wells will be subject to
increasing royalty rates, while the lower rate wells will pay decreased
royalties. Utilizing a September 1, 2007 Paddock Lindstrom price forecast, the
negative impact to Riders net asset value is expected not to be material.

    Future Drilling Economics
    -------------------------
    On January 1, 2009, royalty rates for high volume natural gas wells will
be increased materially. The final determination of royalty payable is very
sensitive to both natural gas price and well production rate. Wells drilled to
measured depths greater than 2000 meters will qualify for a reduction in
royalty payable. The majority of Rider's acreage has production targets that
range in depth from 2200 to over 3000 meters. As a consequence, our royalty
payable will be reduced. The amount of the royalty reduction will be dependent
upon the rate of production and the price of natural gas. Assuming a
September 1, 2007 Paddock Lindstrom price forecast and continuation of
historic production rates, Rider's drilling inventory will continue to provide
opportunities with acceptable economic returns notwithstanding the economics
of many medium depth prospects have been materially impaired. Rider has
identified a number of anomalies and ambiguities in the proposal that it
believes produce the unintended consequence of reduced industry drilling
activity as prices increase. Rider will continue to work with the Government
of Alberta to clarify these anomalies and propose constructive solutions to
preserve activity levels.

    ADVISORY: Certain information regarding Rider Resources Ltd. in this news
release including management's assessment of the effect on Rider of royalty
rate changes in Alberta, future plans and operations, number, type and timing
of wells to be drilled, tested and completed, timing of tie in of wells and
commencement of production from new wells and production therefrom, the plan
and development of certain prospects, and production estimates may constitute
forward-looking statements under applicable securities laws and necessarily
involve risks including, without limitation, risks associated with oil and gas
exploration, development, exploitation, production, marketing and
transportation, loss of markets, volatility of commodity prices, currency
fluctuations, imprecision of reserve estimates, environmental risks, changes
in royalty and tax legislation, competition from other producers, inability to
retain drilling rigs and other services, capital expenditure costs, including
drilling, completion and facilities costs, unexpected decline rates in wells,
surface conditions may delay projects and/or operations, wells not performing
as expected, delays resulting from or inability to obtain required regulatory
approvals and ability to access sufficient capital from internal and external
sources. As a consequence, actual results may differ materially from those
anticipated in the forward-looking statements. Readers are cautioned that the
foregoing list of factors is not exhaustive. Additional information on these
and other factors that could effect Rider's operations and financial results
are included in reports on file with Canadian securities regulatory
authorities and may be accessed through the SEDAR website (www.sedar.com), at
Rider's website (www.riderres.com). Furthermore, the forward-looking
statements contained in this news release are made as at the date of this news
release and Rider does not undertake any obligation to update publicly or to
revise any of the included forward-looking statements, whether as a result of
new information, future events or otherwise, except as may be required by
applicable securities laws.

    %SEDAR: 00019089E




For further information:

For further information: Craig W. Stewart, President and Chief Executive
Officer, (403) 781-2445; or John W. Ferguson, Vice President, Chief Financial
Officer and Corporate Secretary, (403) 781-2446, Rider Resources Ltd.; Suite
1701, 333 - 7th Ave. S.W., Calgary, AB, T2P 2Z1, Ph: (403) 266-0844,
www.riderres.com

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RIDER RESOURCES LTD.

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