Rodinia Oil Corp. Announces Completion of Drilling of its “Mulyawara-1″ Well, Officer Basin, South Australia and Updates Corporate Activities
CALGARY, Oct. 13, 2011 /PRNewswire/ – (TSXV: ROZ) – Rodinia Oil Corp. (“Rodinia”) announces that its 80% owned Mulyawara-1
exploration well reached a total measured depth (“TD”) of 2691.3 metres
and was officially plugged and abandoned on October 13, 2011. The TD
was at the top of the interpreted Mesoproterozoic section. Mulyawara-1
was drilled as a wildcat exploration well far from geologic control.
The nearest existing wells with the prospective deep Pindyin sands are
approximately 500 km to the west and 300 km to the east.
After evaluating the log information and the drilling samples, the
decision to plug and abandon the well was made. A definitive
petrophysical interpretation of the deeper zones was not possible due
to the extremely poor quality of the wireline logs caused by the severe
degree of washout in the wellbore.
During drilling, gas shows with up to C5 (pentane) content were recorded
over sands in the Mundallio and Emeroo sections and totaled
approximately 150 gross metres. Log evaluation indicates that the
developed sandstone reservoirs had porosity less than 10%. These
results are to be added to those discussed in Rodinia’s August 4, 2011
press release, which reported hydrocarbon shows in the uphole Murnaroo
The sub-salt section had poorer than expected Pindyin sandstone
development and contained no shows. The shows in the Neoproterozoic
Murnaroo, Mundallio and Emeroo sandstones are encouraging as they
demonstrate an active mature petroleum system capable of generating
Given the number of delays due to mechanical and operational issues at
Mulyawara-1, the well has taken approximately three times longer than
anticipated to drill resulting in approximately 75% cost overruns.
Rodinia has undertaken a comprehensive review of its operations to
determine how to achieve better performance for the remainder of its
2011 capital program. Much of this review incorporates the planning and
design for future wells and working with suppliers to improve the
equipment and services available to Rodinia in the Officer Basin.
2011 Capital Program Update
The primary objective of Rodinia’s current capital program is to
appraise the potential of the large structures currently identified on
its lands in the Officer Basin, South Australia. The Mulyawara-1 well
has substantially added to Rodinia’s knowledge of the geologic and
hydrocarbon potential of the Officer Basin. Rodinia will continue
mapping the Murnaroo, Mundallio, Emeroo and Pindyin sandstones to
better determine the extent and reservoir potential of these formations
at its next well, “Kutjara-1″, which will be drilled using modified
drilling techniques in an effort to improve drilling efficiencies and
The Kutjara-1 well location has a number of advantages, namely:
-- Recently acquired infill seismic has better defined the structure -- It is accessible from existing infrastructure -- The distance from Mulyawara-1 to Kutjara-1 reduces rig travel time -- Fault patterns isolate the migration pathway and potential source of Kutjara-1 from Mulyawara-1 -- Recent hydrocarbon shows in the Mulyawara-1 well have demonstrated active petroleum systems in the Munaroo, Mundallio and Emeroo sections -- Mulyawara-1 has demonstrated that most of the Kutjara-1 well can be drilled using PDC bits, which offer drilling efficiency and should substantially lower the overall evaluation costs
Ensign Rig #16 will shortly travel approximately 45 km south to this
second location, Kutjara-1, to commence drilling.
Rodinia is in the early exploration stage and is operating in the remote
and under-explored Officer Basin in Australia. Its ability to finance
its future operations is dependent upon the existence of economically
recoverable hydrocarbons and its ability to obtain new sources of
financing. The second location, Kutjara-1, is a wildcat exploration
well and is still a high-risk venture which is yet to be proven.
Shareholder Rights Plan Adopted
A Shareholder Rights Plan (the “Rights Plan”) has been adopted by the
Board of Directors to ensure the fair treatment of shareholders in
connection with any take-over offer for Rodinia, and to provide the
Board of Directors and shareholders with additional time to fully
consider any unsolicited take-over bid. The Rights Plan is subject to
approval by Rodinia’s shareholders at Rodinia’s upcoming annual general
and special shareholders’ meeting, scheduled for Thursday, November 10,
2011 at 3:30 pm (Calgary time). If ratified by the shareholders, the
Rights Plan will have a term of three years. The Rights Plan has been
approved by the TSX Venture Exchange.
Rodinia has not adopted the Rights Plan in response to any specific
proposal to acquire control of Rodinia. The Rights Plan is similar to
plans adopted by other Canadian companies and approved by their
The Rights Plan is not intended to prevent take-over bids. Under the
Rights Plan, any such bid that meets certain requirements intended to
protect the interests of all shareholders will be deemed to be a
“Permitted Bid”. Permitted Bids must be made by way of a take-over bid
circular prepared in compliance with applicable securities laws and
remain open for sixty days.
Under the Rights Plan, Rights have been issued and attached to all Class
A common shares of Rodinia issued and outstanding as of the close of
business on October 13, 2011. Rights will be issued upon any future
issuance of any Class A common shares of Rodinia that occurs prior to
the Separation Time (as defined in the Rights Plan).
In the event a take-over bid does not meet the Permitted Bid
requirements of the Rights Plan and the conversion of the Rights is
triggered pursuant to the provisions of the Rights Plan, the Rights
will entitle shareholders, other than any shareholder or shareholders
making the take-over bid, to purchase additional common shares in
Rodinia at a substantial discount to the market value at the time.
Rodinia announces that Peter Philipchuk has resigned as a director of
Rodinia for personal reasons and that Matthew Philipchuk, Executive
Vice-President, has resigned in order to pursue other business
opportunities in Australia, both effective immediately. Both Peter and
Matthew have been central to the founding and building of Rodinia, from
its inception to the present time. Paul Bennett, President and CEO of
Rodinia, in expressing his thanks on behalf of the Board stated: “The
insight and vision of both Peter and Matthew have been instrumental in
building Rodinia and in accumulating its very substantial land position
in the Officer Basin of Australia. The Board thanks both of them for
their past service and wishes them well in their future endeavors.”
Concurrently, Rodinia is recruiting for the position of Chief Operating
Officer, to lead its operations in Adelaide, South Australia. For
further information regarding this position please contact Mr. Sean
McBurney, Senior Client Partner at Korn/Ferry International at +1 (403)
Rodinia’s Annual General and Special Meeting of Shareholders will be
held on Thursday November 10, 2011 at Rodinia’s Conference Centre, Main
Floor, 715 5 Ave. SW, Calgary, Alberta, Canada beginning at 3:30 p.m.
About Rodinia Oil Corp.
Rodinia is an international oil and gas exploration corporation. The
Common Shares and Warrants are listed for trading on the TSX Venture
Exchange under the symbols “ROZ” and “ROZ.WT” respectively. Rodinia is
engaged in the exploration, acquisition and development of petroleum
and natural gas assets in Australia’s Officer Basin. Founded in 2006,
Rodinia has access to large tracts of exploratory lands and is one of
the first companies to undertake exploration in the Officer Basin.
Rodinia has offices in Calgary, Alberta and Adelaide, South Australia.
This press release may contain forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of Rodinia, including, without limitation,
statements pertaining to Rodinia’s drilling plans and operations, the
operation of the Rights Plan and the approval of the Rights Plan by
Rodinia’s shareholders. All statements included herein, other than
statements of historical fact, are forward-looking information and such
information involves various risks and uncertainties. There can be no
assurance that such information will prove to be accurate, and actual
results and future events could differ materially from those
anticipated in such information. A description of assumptions used to
develop such forward-looking information and a description of risk
factors that may cause actual results to differ materially from
forward-looking information can be found in Rodinia’s disclosure
documents on the SEDAR website at www.sedar.com. Any forward-looking statements are made as of the date of this
release and, other than as required by applicable securities laws,
Rodinia does not assume any obligation to update or revise them to
reflect new events or circumstances.
Neither the TSX Venture Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Rodinia Oil Corp.
Image with caption: “Rodinia’s Extensive Land Base in the Officer Basin, South Australia. (CNW Group/Rodinia Oil Corp.)”. Image available at: http://photos.newswire.ca/images/download/20111013_C4053_PHOTO_EN_4577.jpg