Richards Oil & Gas Drills New Horseshoe Canyon Play

Richards Oil & Gas

Richards Oil & Gas says that its first exploration well in the Crossfield area of south-central Alberta has been drilled and cased. The well penetrated a highly promising sequence of Horseshoe Canyon formation coals and additional, prospective, Edmonton gas-charged channel sand intervals. The well was eventually drilled into the Viking formation and encountered three meters of oil sand in a shore face and channel sequence. The conventional oil targets encountered were identified prior to the commencement of drilling from the Corporation's high resolution 3D seismic. Production testing of the Viking reservoir is expected to commence within in the next two weeks.

"This well at Crossfield represents a first step in our exploration program covering multiple reservoir opportunities that exist below our coal bed methane ("CBM") focus targets," said David Thomas, President and CEO of Richards. The Corporation holds a 60% working interest in five sections of land at Crossfield that were acquired in the spring of 2006 with an industry partner.

A Calgary-based exploration company, Richards Oil & Gas Limited is involved in the development of hydrocarbon resources in Western Canada, with an emphasis on the exploitation of CBM.