Rodinia Oil Corp. completes drilling of its second well (“Kutjara-1″)
CALGARY, Dec. 12, 2011 /PRNewswire/ – (TSXV: ROZ) – Rodinia Oil Corp. (“Rodinia”) today announced that its second
exploration well, “Kutjara-1″, in the Officer Basin, South Australia
reached a total measured depth of 2,453.7 metres at the top of the
interpreted Mesoproterozoic section. Like Mulyawara-1, there were
excellent thick reservoirs intersected throughout the Neoproterozoic
section. The sub-salt Pindyin Sandstone objective had better reservoir
characteristics and was twice as thick in Kutjara-1. Although there
were encouraging shows in the well, the wireline log data acquired
after completion of drilling did not indicate any commercial
accumulations of hydrocarbons. As a result, Rodinia has now plugged and
abandoned the well.
Rig #16 of Ensign International Energy Services (“Ensign”) has been
released and is being demobilized from the Officer Basin. Management is
in discussions with Ensign to use a smaller rig in future wells in
order to improve on rig mobilization and daily drilling costs.
Due to a modified well design, drilling efficiencies were far superior
at Kutjara-1 and that drilling time decreased by approximately two
thirds as compared to the Mulyawara-1 well. The significant drilling
improvements were accomplished using PDC bits and removing several
casing strings from the drilling plan.
Since mid-November 2011, Rodinia has served default notices on its
Officer Basin joint venture partner for failure to pay its share of
costs (currently in excess of $2.2 million) associated with their
ongoing joint operations. This joint venture partner has responded by
serving dispute notices on Rodinia pursuant to the operating agreement
and their related joint operations. Additional amounts have and will be
invoiced to this party, which are not yet in default. As a result,
Rodinia’s total financial exposure could reach $4.0 million. The
parties are about to commence a dispute resolution process and
depending on the outcome thereof, Rodinia expects to have working
capital of approximately $5.0 – 9.0 million at year-end 2011.
Rodinia’s ability to finance its future operations is dependent upon its
ability to obtain new sources of financing and the existence of
economically recoverable hydrocarbons.
Rodinia will be conducting a comprehensive review of operations for
-- Evaluation of infrastructure needs for all of its future drilling locations -- Ongoing seismic interpretation and mapping based on the completed seismic program and the well information acquired in 2011 -- Review and evaluation of all capital management opportunities
With an 85% average working interest on an expansive land base of 23
million acres (gross), Rodinia has a number of funding options
available to it. To preserve capital and minimize dilution to
shareholders, third party joint ventures and farmin opportunities are
currently being evaluated, with interest being expressed by several oil
and gas companies.
While the results from Kutjara-1 are disappointing, Rodinia’s recent
drilling has established the existence of excellent reservoir quality
formations and the presence of hydrocarbon shows and a working
hydrocarbon system in the Neoproterozoic aged rocks of the Officer
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. 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.