Richards Oil & Gas Limited Reports Year-End Results

    CALGARY, April 23 /CNW/ - Richards Oil & Gas Limited (the "Company") (TSX
Venture: RIX) today reported increased production volumes and revenues in its
financial statements and related management's discussion and analysis ("MD&A")
for the year ended December 31, 2006 on


    -   Significant production growth achieved year over year as the Company
        exited 2006 with monthly production of 219 boe/d compared to an exit
        rate of 55 boe/d achieved in 2005 - an increase of 298%.
    -   18 wells (gross) drilled in 2006, taking the Company's total well
        count to 37 (gross) wells drilled since inception. Of the 18 wells
        drilled, 12 targeted the Horseshoe Canyon coals, four were drilled in
        the Ardley coals and two were drilled for conventional targets. All
        the Horseshoe Canyon wells and the conventional wells were
    -   Through drilling and farm-in efforts the Company has earned
        additional lands enabling the Company to move toward short-term
        production objectives through the expansion of conventional and CBM
        natural gas production and additions to our pipeline ownership and
    -   Through extensive drilling and testing of the Ardley coal formation -
        including the Company's first horizontal well into the Ardley coals -
        the Company has identified a significant portion of the Ardley coal
        resource as being within water-free, gas-bearing coals. The Company's
        efforts are continuing to focus on the process of adapting existing
        technologies and developing new approaches to the commercial recovery
        of the gas in place.
    -   The Company increased its proved plus probable reserves 318% from
        approximately 427,000 boe at the beginning of the year to 1,359,000
        boe by year end - the reserve life index for these reserves is over
        13 years.
    -   Not included in the Company's reserve figures is a resource volume of
        159 bcf ascribed to the Company's undeveloped land at December 31,

    On March 29, 2007 the Board of Directors accepted Mr. David Thomas's
resignation as President, Chief Executive Officer and Director of the Company.
David led the company through its early days, and we extend our sincere thanks
to him for his service to the Company. Mr. Brad Turner has accepted the role
of President and Chief Executive Officer for the next phase of the Company's
development. Brad brings to the position more than 20 years' experience in
managing energy and related companies. His skills in planning, management,
strategy, negotiation and finance will serve Richards well as it moves

    $ Amount except for per
    share information                          Year ended December 31
                                            2006          2005        Change
    Production revenues                1,217,674       308,344          295%
    Net income (loss)                 (4,148,052)   (1,109,263)        (274%)
    Net income (loss) per share            (0.12)        (0.08)         (50%)
    Cash and cash equivalents          8,117,678    12,393,298          (35%)
    Property and equipment additions  14,416,551     7,662,665           88%
    Total assets                      31,005,690    22,831,605           36%
    Total liabilities                 10,498,650     4,214,897          149%
    Common shares outstanding
     - basic                          40,991,964    32,679,499           25%
    Common shares outstanding
     - diluted                        52,293,692    42,774,637           22%


                                               Year ended December 31
                                            2006          2005        Change
    Natural gas (mcf/day)                    415            28         1382%
    Crude oil (bbl/day)                       20            12           67%
    Total (boe/day)                           90            17          429%
    Exit rate (boe/day)                      219            55          298%
    Natural gas price ($/mcf)              $6.16        $10.11          (39%)
    Oil price ($/bbl)                     $36.84        $47.37          (22%)
    Royalties ($/boe)                      $7.01         $9.37          (25%)
    Operating expenses ($/boe)            $19.45        $26.44          (26%)
    Operating netback ($/boe)             $10.63        $15.42          (31%)

    The Company's financial statements and related MD&A for the three and 12
month periods ended December 31, 2006 can be accessed at or 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 ( 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.

    %SEDAR: 00021365E

For further information:

For further information: Brad Turner, President & CEO, Richards Oil &
Gas Limited, Tel: (403) 265-8444, E-Mail:; Lonn
Bate, CFO, Richards Oil & Gas Limited, Tel: (403) 265-8444, E-Mail:

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