Rodinia Oil Corp. releases second quarter 2011 financial and operating results
CALGARY, Aug. 30, 2011 /PRNewswire/ – (TSX-V: ROZ) – Rodinia Oil Corp. (“Rodinia”) today released its financial and operating
results for the second quarter of 2011. A copy of Rodinia’s unaudited
condensed consolidated financial statements and related management’s
discussion and analysis (“MD&A”) can be accessed either at www.sedar.com or on Rodinia’s website.
Second Quarter 2011 Highlights
-- On June 9, 2011, Rodinia announced that it had spudded its first exploratory well, Mulyawara 1, located in the northwest corner of PEL 253 in the Officer Basin, South Australia. Mulyawara 1 is drilling vertically to an estimated total drilling depth of 2,700 metres to test five prospective reservoir horizons: Murnaroo, Tarlina, Mundallio, Emeroo and the deepest of which is the Aeolian Pindyin sandstone (also called the sub-salt unit). Rodinia has an 80% working interest in this well and prospect, and is the operator. -- On June 9, 2011, Rodinia announced its second drilling location, Kutjara 1, which has recently been hi-graded and re-confirmed by additional 2D seismic lines. Kutjara 1 is located in the west-central portion of PEL 253 approximately 35 kilometres southeast of Mulyawara 1. -- Total capital expenditures of $23.9 million for the six months ending June 30, 2011 were incurred in South Australia associated with Rodinia's Phase III seismic acquisition and interpretation program and drilling preparation and drilling expenses. -- As at June 30, 2011 Rodinia had completed and processed 2,536 kilometers of 2D seismic in PEL 81 and PEL 253 as part of the 2011 capital budgeted Phase III seismic program.
2011 Capital Program Update
As of June 30, 2011, Rodinia had a working capital surplus of $29.7
million with no debt. Rodinia is in the exploration stage of its
development 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.
Given numerous mechanical and operational issues with the drilling of
Mulyawara 1, drilling progress has been substantially slower than
anticipated, resulting in cost overruns.
In light of lessons learned from this first exploratory well, Rodinia is
in the process of reviewing and revising the existing drilling program
and well designs for the remainder of the 2011 capital program.
On August 4, 2011, Rodinia announced that testing to date of Mulyawara 1
had confirmed the existence of excellent reservoir quality rocks in the
Neoproterozoic with the Eidacaran Age Murnaroo Formation having an
average log porosity of 18% (commonly up to 23%). The well encountered
small gas peaks and traces of hydrocarbon fluorescence exhibiting
blooming cut over discrete intervals within the undifferentiated Upper
Rodinia believes these findings are encouraging and they reduce the
risks associated with source, migration and reservoir. However,
Mulyawara 1 is still a high-risk venture and yet to be proven and the
primary objectives of the well are yet to be intersected and lie below
the prospective regional salt seals.
Rodinia’s Annual and Special General 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. 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.