CALGARY, Nov. 3, 2011 /PRNewswire/ - Rodinia Oil Corp. ("Rodinia") is pleased to announce that it has spudded its second exploratory well, "Kutjara-1", in the Officer Basin, South Australia.
- The Kutjara-1 well commenced drilling on November 2, 2011 with the objective of appraising the Kutjara structure
- The well is targeting multiple prospective Neoproterozoic reservoirs
- The well's target depth is 2,668 metres and it is expected to take approximately eight weeks to drill to total depth ("TD")
- Kutjara-1 is the second well in Rodinia's Officer Basin exploration program
Kutjara-1 is located in the west central portion of PEL 253 approximately 45 kilometres southeast of Rodinia's first well, Mulyawara-1. Rodinia has an 80% working interest in PEL 253 and is the operator. The Kutjara structure has been well defined by recently acquired infill 2D seismic. The structure is large (approximately 12 km by 3 km), defined by six seismic lines and has multiple potential reservoirs. It is also offset by several other large closed structures that could be followed up on if this well is successful.
Based on lessons learned and information gathered by Rodinia at Mulyawara-1, Kutjara-1 will be drilled using the following modified drilling techniques in order to improve drilling efficiencies and lower costs:
- Drilling a smaller diameter hole throughout
- Dropping several casing strings from the original well design
- Eliminating the air pack/hammer drill assembly, which will reduce damage to the bottom hole assembly and related twist offs, fishing runs and tripping time
- Achieving higher average rates of penetration by using PDC bits rather than tricone bits
The primary objective of Rodinia's current capital program is to appraise the potential of the large structures currently identified on its lands in the Officer Basin, South Australia. The Mulyawara-1 well substantially added to Rodinia's knowledge of the geologic and hydrocarbon potential of the Officer Basin. Rodinia will continue to expand its understanding of the extent and reservoir potential of the Neoproterozoic formations with Kutjara-1. However, Kutjara-1 is a high-risk exploration well, which is yet to be proven.
Paul Bennett, Chief Executive Officer and President, commented:
"We are excited to spud Kutjara-1, the second well in our current Officer Basin exploration program. Our immediate objective with this well is to appraise several potential reservoirs in this structure, one of several large prospective structures that we have identified on our lands."
Rodinia's current net working capital is approximately $16.4 million. The budgeted cost of Kutjara-1 is approximately $7 million (Australian dollars).
Rodinia is currently exploring options for additional partner participation and the potential to bring in a smaller rig to drill future wells.
As Rodinia is in the early exploration stage and is operating 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.
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.