MONTREAL, Sept. 17 /CNW Telbec/ - The board of directors of Rolland
Energy (TSX-V: ROE), an emerging oil and gas company, has announced a
Effective immediately, Martial Rolland has stepped down as Chairman and
President and CEO. Jocelyn Boucher, chief of the Audit Committee, has been
nominated as interim Chairman of the Board of Directors. Michael McLellan,
CFA, has been nominated to the Board of Directors and will undertake the
functions of and serve as interim President and CEO. Mr. McLellan had been
serving as the corporation's CFO since March 2006.
An Executive Committee of the Board of Directors composed of Ron
Bourgeois, Louis-Robert Lemire and Jocelyn Boucher has also been nominated to
more closely supervise the operations of the corporation. The Executive
Committee will be chaired by Mr. Bourgeois.
The corporation will undertake to find a new President and CEO of the
company following the restructuring of the corporation, discussed below.
In order to preserve value for current shareholders and to enable the
corporation to develop to its full potential, the Board of Directors has
decided to pursue a plan with two key objectives: recapitalize the corporation
by issuing new equity and expand the corporation's asset base. This plan will
ensure the corporation's financial prosperity and enable the corporation to
rapidly achieve its goal of becoming a profitable light crude oil producer.
The recapitalization will involve both flow-through and regular equity
financing (details to be announced) and will be undertaken shortly. The
recapitalization may involve a significant dilution for its current
shareholders, but it will give management the resources it needs to create
significant shareholder value afterward. By focusing on building the critical
mass of assets required for long-term profitability, the corporation can
maximize value for its shareholders.
The restructuring plan and the renewed focus on profitability was brought
about by the current financial situation of the corporation, which is
critical, as the corporation's current assets do not enable it to meet its
current financial obligations. The corporation expects to resolve its working
capital deficiency and become both cash-flow positive and profitable when it
meets its recapitalization and operational objectives.
The corporation has two new wells on its Woodnorth Properties, which are
the result of last year's flow-through financing. These wells are completed
and will be brought on production shortly when the wells are tied-into the
battery operation by flow line. The increases in total production from these
two wells should improve the corporation's revenues significantly and make an
important first step in the corporation's plan as set out above.
The corporation has also begun work to reactivate a third well at its
Woodnorth Properties, which, upon successful reactivation, will be brought
onto production shortly along with the two new wells. The corporation has
faced delays on completing all these wells mainly due to the poor
working-capital situation. The restructuring plan of the corporation will
ensure that such problems do not occur in the future.
The restructuring plan includes increasing the assets of the corporation
and it is pursuing new acquisitions that will complement its existing
operations. Currently, the corporation has targeted several good candidates
for acquisition to be completed with some of the proceeds from the
The corporation is also pursuing business objectives internationally, the
principle objective of which is to create a trading operation in petroleum
products. The results of these efforts and actions are as yet uncertain,
however, management is pleased with the progress to date and confident that
the pursuit of such objectives will be financially beneficial.
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.
"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) 294-6980,