Ryland Increases Bakken Holdings with Saskatchewan License
Ryland Oil has acquired a 100% working interest in additional Saskatchewan crown petroleum and natural gas licenses and leases covering 26,286 gross and net acres of land. The licenses and leases, which include all rights, are located in southeast Saskatchewan and are adjacent to Ryland's current acreage.
Said Dick Findley, Chairman of Ryland, "In this sale we targeted certain very specific acreage, largely because of its Bakken potential, and are pleased with the additional holdings we acquired. Our Roncott Bakken Play has become an important focus of our current drilling program. Through our recent acquisition of Viceroy Resources Ltd, Ryland now operates the Roncott Bakken Field.
"The Roncott Field, discovered in 1956 has had some of the best vertical Bakken production in the entire Williston Basin (both in the U.S. and Saskatchewan), greatly exceeding production from vertical wells in the Saskatchewan Viewfield area. The Viceroy acquisition was not made for its modest production but as a strategic move to acquire up to 22 horizontal Bakken drilling locations (11 net locations) directly offsetting excellent proven vertical production as well as multiple surrounding wells exhibiting good porosity and oil saturations similar to the historic wells in the pool which were productive."
Ryland's additional Crown acreage was acquired at a total cost of C$767, 300 or $29.19 per acre. The acquisition has increased the Company's total holdings in Southeast Saskatchewan and North Dakota to approximately 394,446 net acres. With the addition of these new crown licenses, Ryland estimates that it now owns up to 80 net drilling locations surrounding the Roncott Pool.
Two licenses immediately adjacent to Ryland's Roncott holdings went for approximately $2100/acre (13,257 acres) and $1800/acre (11,500 acres). Ryland's average cost per acre for its holdings in southeast Saskatchewan now stands at approximately $85.
"This sale has highlighted once again the value of Ryland's acreage position," continued Findley. "We believe Ryland's current market cap is well below our land value alone, considering the high level of Bakken drilling activity resulting in new production in the area and the dramatic rise in prices being paid for Bakken acreage."
Ryland is currently drilling its third horizontal well in the Roncott area and is very encouraged by its initial results. Ryland has already applied for 4 additional horizontal drilling permits in this area.