MONTREAL, Nov. 19 /CNW Telbec/ - Rolland Energy Inc. (TSX-V: ROE, the
"Corporation") is pleased to release the first update to shareholders from the
Corporation's interim President and CEO Michael McLellan, CFA.
What follows is an extract of the full Update to Shareholders. The full
text is available on the Corporation's website at www.RollandEnergy.com.
November 19, 2007
Some eight weeks have passed since I was nominated to the position of
President and CEO of Rolland Energy. And while it feels like time has gone by
very quickly, when I consider what has transpired since then, I am struck by
the progress and accomplishments made by the Corporation in such brief period.
Since then we have prevented insolvency, reduced our short-term financial
risks and turned declining operations into growing operations.
Your Board of Directors adopted a restructuring plan at the outset of my
mandate. The restructuring plan calls for three key objectives to be met so
the Corporation can become cash-flow positive and profitable:
2. Maximize net cash generated from existing assets, and;
3. Increase the size and quality of the Corporation's asset base via
exploration, development and acquisitions.
We have already made solid progress towards each of these three
objectives, and our plans are in place to continue apace. The following is an
update of our achievements in the past eight weeks and a discussion of our
- Recapitalization: On October 18, 2007, the Corporation closed a private
placement of $1.84 million. The Corporation will continue to make
efforts to raise additional funds from equity as it deems necessary to
fund exploration, development and acquisitions as well as to pay down
- Rationalization: We have minimized overhead and operating costs to the
minimum possible without affecting the business and prospects of the
- Oil Producing Operations: We have turned declining operations into
growing operations. At the outset of my mandate production had reached
a historic low. Revenues were down to an average $82,099 per month for
the six months ended September 30, 2007, from average production of
38 barrels per day. During that period the Corporation had an average
of 3.72 out of 9 wells down at any time during the six month period
ended September 30, 2007. We have now initiated a maintenance and
re-development program to bring all wells on production and optimize
production going forward. We have also now activated one of two newly
drilled wells. A second new well will go on test production this week.
The Corporation now has a total of eleven producing wells at its
Woodnorth and Maples properties, and we will make our best efforts to
maximize the return from these wells.
- Technical Expertise: The Corporation has added an extremely qualified
and experience geologist, Mr. Ray Schwartzenberger, P. Eng, B. Sc. Ray
brings 40 years of technical oil and gas experience as a geologist into
- International Division: With respect to the launch and the
establishment of the international division led by Mr. Traian Cabba,
Traian is making good progress negotiating on behalf of the Corporation
for the purchase and re-sale of petroleum products internationally. The
Corporation is now registered or is being registered in several
countries, and is participating in multiple bids. Favourable
developments may have a material effect on the business of the
- Financing Capacity: The Corporation hired Downshire Capital Inc. to
handle investor relations. Downshire's experienced investor relations
personnel are committed to working with us to help us finance our
- Banking: The Corporation has changed banks to National Bank Commercial
Banking, which has a considerable presence and expertise financing oil
and gas producing companies in Western Canada.
- Short-Term Liabilities: At the outset of my mandate, the Corporation
had significant and urgent short-term liabilities. The Corporation has
now reduced or negotiated payment terms for a sizeable majority of its
short-term liabilities, and continues efforts to manage and reduce the
risks associated with its payables.
- Contingencies: The Corporation has settled two lawsuits where the
Corporation was defendant under favourable terms. A total of $85,000
will be paid on total claims of approximately $300,000. There are no
other lawsuits outstanding where the Corporation is a defendant. The
Corporation is the plaintiff in a lawsuit against Station Mont
Tremblant and Intrawest for breach of contract and loss of revenue. Our
claim will increase to approximately $8 million following on new
evidence admitted during the proceedings.
All in all, it has been an extremely busy and exciting first eight weeks,
and we are just getting started. Our overriding goals are for the Corporation
to become cash-flow positive, profitable, and to build an inventory of
opportunities providing solid potential upside for shareholders.
Now that we have dealt with the most urgent short-term issues, we are
focusing primarily on developing our opportunities for growth and expansion.
Domestically, we are currently evaluating several drilling opportunities
and evaluating and negotiating on several acquisitions. To pay for
exploration, development and acquisitions, we plan to raise new funds, as
required. We are operating under the belief that new investors will be
attracted to invest in the Corporation to fund the opportunities we bring
because of the value that can be created from the synergies of growth and from
the inherent economic potential of the opportunities.
Now that we have re-vamped our corporate structure, raised some capital
and hired the key technical personnel, we are positioned for the rapid growth
we aspire to.
I trust that your patience and confidence will be rewarded as we enter a
new era for this corporation.
Michael McLellan, B.Comm, CFA
President and Chief Executive Officer
Rolland Energy Inc.
ABOUT ROLLAND ENERGY INC. - www.rollandenergy.com
Rolland Energy is a light crude oil producer based in south-western
Manitoba, building shareholder value through growth by combining 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