CALGARY, Aug. 30 /CNW/ - Richards Oil & Gas Limited (the "Company") (TSX
Venture: RIX) today reports the filing of its financial statements and related
management's discussion and analysis ("MD&A") for the second quarter ended
June 30, 2007.
Q2 2007 HIGHLIGHTS
- On May 28, 2007 initiated a $10,000,000 private placement which
closed on July 10, 2007. The net proceeds of $9,537,500 will be used
to accelerate the development of the Company's Horseshoe Canyon Coal
Bed Methane ("CBM") properties.
- On June 13, 2007 appointed five new Directors to expand and increase
the depth of oil & gas and business expertise of the Company's Board
- Drilled one new well (1.0 net) at Crossfield as part of the continued
development of the area. Stimulation and testing will be completed in
- Commenced drilling of 6 new wells (2.5 net) in the Lacombe area.
Stimulation and tie-in will be completed in Q3 2007.
- Planned and bid the stimulation and tie-in of one well (0.5 net) in
Thorsby and 6 wells (3.6 net) in the Company's Morningside area.
These wells will be brought on to production in Q3 2007.
- Experienced a decline in production from the Company's two
conventional gas wells in the Gadsby area due to natural reservoir
decline and fluid build-up in two wells. In August 2007 production
levels have been improved and are now stable with the installation of
fluid lift equipment.
- Experienced a temporary decline in CBM gas production in the Lacombe
area due to work over activities that were prolonged because of wet
weather. Repair and maintenance work has been completed and the CBM
wells in this area are back to full production.
- Experienced a temporary decline in CBM gas production in the
Morningside area due to compression issues. These issues will be
corrected on a more cost effective basis as part of the tie-in of the
additional 6 wells (3.6 net) in Q3 2007.
- Planned and bid drilling, completion and testing services for two new
vertical wells and one new horizontal well in the Ardley area along
with stimulation and testing service of three existing Ardely wells.
This field activity commenced in July and will be completed by mid-
- Given the new well activity and the correction of temporary declines
in production, the Company estimates exit production rate for Q3 2007
to be 220 to 260 boe per day up from the Q2 2007 average rate of 114
boe per day.
The Company's financial statements and related MD&A for the three and six
months ended June 30, 2007 can be accessed at www.sedar.com or
www.richardsoilandgas.com. Those investors who do not have access to the
internet can obtain copies of the financials and related MD&A without charge
by contacting Richards Oil & Gas Limited at (403) 265.8444.
Richards Oil & Gas Limited (www.richardsoilandgas.com) is a Calgary-based
exploration company, involved in the development of crude oil and natural gas,
with an emphasis on the exploitation of coal bed methane (CBM). With a
significant land base and industry-leading experience in the development of
CBM projects, the Company is at the forefront of the CBM industry in Western
Canada. The Company is able to capitalize on opportunities that create both
short-term cash flow and long-term value for its shareholders.
Coalbed Methane (CBM) or Natural Gas from Coal (NGC) is technically
defined as gas produced naturally by coalification, and found within coal
natural gas reservoirs consisting predominately of methane, with smaller
amounts of higher hydrocarbons, water vapor, nitrogen, carbon dioxide, or
other non-hydrocarbons. The majority of gas is usually physically sorbed
within the microporosity and mesoporosity within the organic matrix. The
Company's management has extensive experience in the development of CBM
projects, which it is using to exploit the Company's land base and to add and
sustain significant value for its shareholders.
BOEs may be misleading, particularly if used in isolation. A BOE
conversion ratio of 6 Mcf: 1bbl is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.
Statements in this news release contain forward-looking information
including expectations of future production, procurement of drilling permits,
plans for and results of exploration and development activities and other
operational developments. The reader is cautioned that assumptions used in the
preparation of such information may prove to be incorrect. Events or
circumstances may cause actual results to differ materially from those
predicted, as a result of numerous known and unknown risks, uncertainties, and
other factors, many of which are beyond the control of the Company. These
risks include, but are not limited to; the risks associated with the oil and
gas industry, commodity prices, and exchange rate changes. Industry related
risks include, but are not limited to; operational risks in exploration,
development and production, availability of skilled personnel and services,
failure to obtain industry partner, regulatory and other third party consents
and approvals, delays or changes in plans, risks associated with the
uncertainty of reserve estimates, health and safety risks and the uncertainty
of estimates and projections of reserves, production, costs and expenses. The
reader is cautioned not to place undue reliance on this forward-looking
information. The forward-looking statements contained herein are subject to
change. Except as required by applicable securities laws, the Company assumes
no obligation to update or revise any forward-looking statements should
circumstances or management's opinions or estimates change.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
For further information:
For further information: Brad Turner, President & CEO, Richards Oil &
Gas Limited, Tel: (403) 265-8444, E-Mail: email@example.com; Lonn
Bate, CFO, Richards Oil & Gas Limited, Tel: (403) 265-8444, E-Mail: