MONTREAL, Dec. 11 /CNW Telbec/ - Rolland Energy Inc. (TSX-V: ROE, the
"Corporation") announced today that it has signed a farm-in agreement with
Severo Energy Corp. ("Severo") to participate in the drilling and development
of four shallow gas wells in east-central Alberta.
Each of the wells is targeted for shallow Cetaceous and Devonian zones in
an established field and has multi-zone potential and seismic support,
reducing the geological risk. None of the wells has a target depth greater
than 900 meters and each of the wells is within one mile or less of a gas
pipeline with availability, which can translate into low drilling and tie-in
Severo will be the operator for the program. The drilling will take place
on four Crown P&NG leases at Abee, Balloque, French and Thorhild. The first
well is expected to commence drilling during December 2007 and the last three
wells should be drilled in January or early February, subject to rig
availability, surface access and weather conditions.
Under the terms of the agreement the Corporation will contribute 25% of
the capital costs required to drill and complete each of the wells for an
undivided 25% working interest before payout subject to a pro rata share 15%
gross overriding royalty. After payout, subject to an election by Severo,
Roland's working interest may be reduced to 15% upon conversion of the gross
overriding royalty. Two other Partners will contribute 60% of the capital
costs for a 60% working interest and Severo will contribute 15% of the capital
costs. Upon program completion the Corporation will earn in 2,560 gross acres.
"This is a low-risk, bread and butter development opportunity for Rolland
Energy with no operating requirements and with the potential to increase the
size of our asset base and our revenue-generating capacity", said Michael
McLellan, President and Chief Executive Officer. "This opportunity is in line
with the objectives of our restructuring plan, which are to recapitalize and
to increase the value of the Corporation's assets."
ABOUT ROLLAND ENERGY INC. - www.rollandenergy.com
Rolland Energy is a public energy company focused on developing oil and
gas properties in Western Canada, building shareholder value through growth
from low-risk drilling and strategic acquisitions.
Statements included herein, including those that express management's
expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of applicable securities laws.
Forward-looking statements are based on assumptions and estimates that are
subject to various risks and uncertainties including but not limited to the
risks disclosed under the heading "Business Risks" in the Corporation's
periodic filings with Canadian securities regulators, including most recently
in its Management Discussion and Analysis for the period ended June 30, 2007.
Such information contained herein represents management's best judgment as of
the date hereof based on information currently available. The Company does not
assume the obligation to update any forward-looking statements.
"The TSX Venture Exchange has not reviewed this release and therefore
does not accept responsibility for its adequacy or accuracy."
For further information:
For further information: Michael McLellan, (514) 333-9292