Ridgeway provides shareholder update

    Listed: TSX Venture Exchange (Symbol: RGW)

    HOUSTON, June 6 /CNW/ - Ridgeway Petroleum Corp. (the "Company") is
pleased to provide the following update to shareholders.

    My fellow shareholders:

    Over the last several months, Management of the Company has put in a
considerable effort to increase shareholder value by pushing forward on
several fronts. In the first five months of this year we have:

    1.  Completed 2 non-brokered private placements to raise $12mm before

    2.  Paid approximately US$2.8 million to our secured and unsecured Note
        holders and paid off the Notes in full, thereby becoming debt free;

    3.  Received approvals for the 89,000 acre Cottonwood Canyon Unit
        Agreement in New Mexico thereby consolidating over 40 Federal, State
        and Fee leases into one;

    4.  Initiated the largest drilling program seen to date at St Johns in
        order to further delineate and test the St Johns helium/CO2 field;

    5.  Improved drilling and completion techniques using air drilling over
        our pay zones in order to reduce the amount of damage to the

    6.  Achieved natural flow rates from our main Amos Wash pay zone of
        approximately 2.5mm cubic feet per day (mmcfpd). This is the highest
        rate achieved in the field to date and highlights the benefit of air
        drilling these wells;

    7.  Discovered a new gas bearing zone within fractured basement that
        could contain significant, additional, helium and CO2 reserves;

    8.  Received confirmation from the Arizona State Land department that 11
        key leases totaling approximately 20,000 acres within the St Johns
        field have been extended for an additional 2 year period;

    9.  Strengthened our Board of Directors by adding key oil industry

    10. Added a new Chief Financial Officer (CFO) with extensive oilfield

    11. Purchased our first oilfield in New Mexico where up to 35 mm barrels
        of additional oil may be recovered by advanced CO2 injection methods;

    12. Signed a binding purchase and sales agreement to purchase our second
        oilfield, thereby adding 18mm barrels of additional, potential, oil

    As we move towards the second half of this year we intend to continue
pursuing opportunities to add to our potential EOR oil reserves. In addition,
we plan to initiate CO2 pilot floods on each of the fields we purchase in
order to identify CO2 flood response and increased oil production. A
successful response to CO2 injection at these fields will go along way towards
adding value to the Company through the potential addition of proven
undeveloped oil reserves.
    At the St Johns field we intend to continue with our drilling program in
order to confirm the deliverability of at least 350 mmcfpd for a period of
10 years thus reducing the risk associated with the construction of a 350 mile
pipeline with capacity for up to 500mmcfpd. On the production front we will
continue to test our wells for a period of time to determine the degree to
which our well productivity varies over time, a key requirement in determining
the number of wells required to achieve our intended production profile.
    As per our agreement reached last year with Reliant Holdings, Ltd. we
have invited them to test each of our new wells at St Johns to evaluate
whether any well will be suitable for the delivery of food grade CO2 into
their 100 ton per day CO2 dry ice plant. Reliant is under no obligation to
take this gas.
    At our oilfield in New Mexico we have initiated a fieldwide, workover,
program to bring up to 100 wells back on line, potentially increasing oil
production up to 200 barrels of oil per day. We anticipate that, by bringing
production up to these levels, we will be able to cover our corporate overhead
on a continuing basis.
    As we continue to move forward on several fronts, including the
development of the St Johns field, acquiring more oilfields in New Mexico and
increasing our corporate activity it is paramount that we look to add
qualified staff to help with this process. We are presently talking with
production engineers, drilling engineers and CO2 flood experts to join the
Company. We hope to announce the addition of some of these people in the near
    In the short term, we are adding accounting staff to assist the Company's
new CFO and adding new internal processes and controls to ensure that our
accounting and financial records are above reproach. We must ensure that the
late filing of our recent annual Financials and MD & A will not occur again.
    In the longer term, the Company is looking at ways to finance the
considerable capital requirements of the project and at the same time keep the
amount of share offerings to a reasonable level. As we move forward we all
need to understand that additional shares will be issued, however, by
executing our business plan we believe that considerable share appreciation
can be achieved.
    The Company continues to discuss the development of the project with
several key industry and financial participants that we believe can assist in
getting the project completed. These discussions are lengthy and complex
however we strongly believe that a suitable outcome is out there for all.
    Finally, as the Company moves forward with the implementation of its
business plan, the Board of Directors felt that the time was right for a
company name that more accurately reflected the Company's strategic focus of
CO2 delivery and EOR production in the Permian Basin. We will be announcing
our new name shortly and we believe that the new name and the associated
trading symbol will clearly articulate the Company's growth objectives moving
    We leave you with the comment that your management and board are
committed to maximizing shareholder value. We are excited about the potential
that lies ahead and we look forward to bringing you further results as they
    We thank you for your patience, loyalty and your continued support as we
move forward.


    Barry D Lasker, CEO

    Ridgeway Petroleum is a development stage, enhanced oil recovery (EOR),
company that controls approximately 200,000 acres of land within the St Johns
Helium/CO2 field in Arizona and New Mexico where the Company is developing
what is thought to be the largest undeveloped resource of helium and carbon
dioxide gases in North America. Independent engineering firms have estimated
that the St Johns field contains approximately 15 trillion cubic feet of in
place resources, with a potential recoverable resource of 5 trillion cubic
feet. Development of the project could result in the Company becoming one of
North America's largest CO2 suppliers and EOR producers. The Company's
strategic focus for CO2 delivery and EOR production is the Permian Basin where
significant potential exists for enhanced oil recovery from mature, depleted
oil fields.


    %SEDAR: 00004538E

For further information:

For further information: visit our Website at
www.ridgewaypetroleum.com., or Retail Investors please call Don Currie on
1-888-990-3551; Institutional Investors please call Jonathan Buick at The
Buick Group on 1-877-748-0914, Or email jbuick@buickgroup.com

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890