Richards Oil and Gas Limited reports credit facility update and disposes of non-core oil property

    CALGARY, May 8 /CNW/ - Richards Oil & Gas Limited (the "Company"), (TSX
Venture: RIX) announces that it has signed a revised borrowing agreement with
its lenders and has completed the sale of its non-core Lone Rock heavy oil

    Revised Borrowing Agreement

    After completion of a borrowing base review effective April 30, 2009 by
its lender, the Company has signed a revised borrowing agreement. The terms of
the agreement provide for a total $3.6 million credit facility comprised of a
$2.5 million revolving operating demand loan (previously $2.0 million) and a
$1.1 million demand loan. The Company is obliged to repay $50,000 per month on
the $2.5 million revolving operating demand loan and the $1.1 million demand
loan has no fixed terms of repayment. The Company's previous $2 million
non-revolving acquisition/development demand loan was not renewed and was
re-paid from proceeds from the revised borrowing agreement. Interest on
amounts outstanding will be at a moderately higher rate above bank prime than
under the previous arrangement.

    Disposition of Lone Rock Heavy Oil Property

    The Company recently completed the sale of its non-operated Lone Rock
heavy oil property for proceeds of $220,000. This property has been the only
source of oil production for the Company and in 2008 produced an average of
eight barrels a day of heavy oil. This disposition has been contemplated by
the Company's lender in determining the revised borrowing base mentioned
above. The proceeds from the disposition of this non-core asset will be used
to fund the future operations.

    About Richards Oil & Gas Limited

    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 shallow natural gas resources including coal bed methane
(CBM). With a significant land base and experience in the development of CBM
and conventional natural gas projects, the Company is able to capitalize on
opportunities that create both short-term cash flow and long-term value for
its shareholders.

    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:; Corporate website address:

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