PROPERTY DISPOSITION / Rio Nevada - Enhanced Exploration
Program and Completion of Disposition of Certain Oil and Gas
Interests
ASE SYMBOL: RN
JANUARY 22, 1998
CALGARY, ALBERTA--RIO Nevada announces that it has signed a
seismic option agreement with Millennium Energy Inc. to
participate in a 3-D seismic program in the Rumsey area of East
Central Alberta. The seismic program is expected to be completed
during the First Quarter 1998 with the Company, on completion of
the program, having the option to participate in an exploratory
test well.
The Company has also signed a seismic option agreement with
Maxwell Oil & Gas Ltd. in the Thompson Lake Area of Eastern
Alberta. A 3-D seismic program is scheduled for the First Quarter
1998 and upon completion, the Company has the option to
participate in an exploratory test well to evaluate the oil
potential of the Cummings Formation.
RIO Nevada and Maxwell Oil & Gas Ltd. together with a third
industry partner were successful in acquiring the petroleum and
natural gas rights in three separate leases at the December 10,
1997 Alberta Crown Sale. The maximum bid paid per hectare was
$738.00 for one of the leases with RIO Nevada holding a 33.33
percent working interest in all lands. A 3-D seismic program is
scheduled for the First Quarter 1998 with plans to follow up with
an exploratory test well in the Second Quarter 1998. The target
is the oil bearing Dina/Basal Quartz Formation which is an
established producing zone with an extensive reserve base in the
immediate area.
The disposition of RIO Nevada's oil and gas interests in the
Norbuck Lake area of West Central Alberta was successfully closed
in December 1997 with an effective date of October 1, 1997
allowing the Company to focus entirely on its ongoing exploration
and acquisition program throughout 1998.
RIO Nevada also announces that, subject to regulatory approval, it
granted a total of 200,000 stock options to three persons in
accordance with its Stock Option Plan, such options having an
exercise price of $0.30 per share expiring January 19, 2003.
RIO Nevada is an emerging oil and gas exploration, development and
production company. RIO Nevada common shares trade on The Alberta
Stock Exchange under the symbol RN. |
