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.
Operational Update
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 2012, including:
- 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 Basin.
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.
Forward-Looking Statements
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.