Rodinia Oil comments on resource potential of its holdings in Australia
Wednesday, January 30, 2013
- Linc's acreage in South Australia lies approximately 40 kilometres to the east of the acreage held by Rodinia.
- Both the Mulyawara-1 and Kutjara-1 wells (drilled in 2011) encountered oil and gas shows, encouraging petroleum system indications and excellent Neoproterozoic reservoirs.
Rodinia Oil Corp. draws attention to a recent announcement regarding exploration acreage located to the east of Rodinia's holdings in South Australia.
On January 23, 2013, Linc Energy Ltd. ("Linc") (ASX: LNC) (OTCQX: LNCGY) issued an announcement regarding the results of two independent reports confirming "the significant potential for shale oil" on its exploration acreage in South Australia, where it holds licences and applications covering approximately 16 million acres. This announcement may be accessed on Linc's website at: www.lincenergy.com.
Linc's acreage in South Australia lies approximately 40 kilometres to the east of the acreage held by Rodinia. In total, Rodinia owns an 85% net working interest in approximately 23 million exploration acres, consisting of PEL 81, PEL 253, PELA 303, PELA 445, PELA 351 (all in South Australia) and EPA 14/08-9, EPA 15/08-9, EPA 3/09-0 and EPA 4/09-0 (all in Western Australia). Rodinia has also acquired and processed approximately 4,045 kilometres of new seismic data, reprocessed 1,363 kilometres of existing seismic data and subsequently interpreted a total of 6,153 kilometres of seismic data, all in PEL 253 and PEL 81.
Rodinia commissioned a NI 51-101 compliant resource report effective December 31, 2009 on its exploration acreage at a time when Rodinia held only an 80% net working interest in approximately 17.4 million acres, had processed and interpreted only 1,512 kilometres of seismic data and had not yet drilled its two wells in PEL 253, namely Mulyawara-1 and Kujara-1. This report (which has not been updated) may be accessed on Rodinia's website at: www.rodiniaoil.com and additional information on the prospective resources can be found at www.sedar.com in the Long Form Prospectus dated May 20, 2010 filed under Rodinia Oil Corp.
Both the Mulyawara-1 and Kutjara-1 wells (drilled in 2011) encountered oil and gas shows, encouraging petroleum system indications and excellent Neoproterozoic reservoirs. In particular, during the drilling of Mulyawara-1, gas shows with up to C5 (pentane) content were recorded over sands in the Mundallio and Emeroo sections totaling approximately 150 gross metres. Although these shows demonstrated an active mature petroleum system capable of generating hydrocarbons, both wells were plugged and abandoned as neither was perceived to be commercial. However, management of Rodinia continues to believe that significant potential remains for both conventional and unconventional hydrocarbon discoveries on its holdings.
In order to help fully realize the value of its assets, Rodinia has retained CIBC World Markets Inc. as its exclusive financial adviser to explore and evaluate a range of strategic alternatives, including a joint venture, sale, or farmout of all or a portion of its assets, a merger or other business combination with another entity, a recapitalization, a sale of Rodinia as a whole, or any combination thereof. This process is currently ongoing.
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