Rodinia Oil Corp. Announces Completion of Drilling of its "Mulyawara-1" Well, Officer Basin, South Australia and Updates Corp...

    




 CALGARY, Oct. 13, 2011 /CNW/ -  - Rodinia Oil Corp. ("Rodinia") announces that its 80% owned Mulyawara-1  exploration well reached a total measured depth ("TD") of 2691.3 metres  and was officially plugged and abandoned on October 13, 2011. The TD  was at the top of the interpreted Mesoproterozoic section. Mulyawara-1  was drilled as a wildcat exploration well far from geologic control.  The nearest existing wells with the prospective deep Pindyin sands are  approximately 500 km to the west and 300 km to the east. 

 After evaluating the log information and the drilling samples, the  decision to plug and abandon the well was made. A definitive  petrophysical interpretation of the deeper zones was not possible due  to the extremely poor quality of the wireline logs caused by the severe  degree of washout in the wellbore. 

 During drilling, gas shows with up to C5 (pentane) content were recorded  over sands in the Mundallio and Emeroo sections and totaled  approximately 150 gross metres. Log evaluation indicates that the  developed sandstone reservoirs had porosity less than 10%. These  results are to be added to those discussed in Rodinia's August 4, 2011  press release, which reported hydrocarbon shows in the uphole Murnaroo  sandstone. 

 The sub-salt section had poorer than expected Pindyin sandstone  development and contained no shows. The shows in the Neoproterozoic  Murnaroo, Mundallio and Emeroo sandstones are encouraging as they  demonstrate an active mature petroleum system capable of generating  hydrocarbon. 

 Given the number of delays due to mechanical and operational issues at  Mulyawara-1, the well has taken approximately three times longer than  anticipated to drill resulting in approximately 75% cost overruns.  Rodinia has undertaken a comprehensive review of its operations to  determine how to achieve better performance for the remainder of its  2011 capital program. Much of this review incorporates the planning and  design for future wells and working with suppliers to improve the  equipment and services available to Rodinia in the Officer Basin. 

 2011 Capital Program Update 

 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  has substantially added to Rodinia's knowledge of the geologic and  hydrocarbon potential of the Officer Basin. Rodinia will continue  mapping the Murnaroo, Mundallio, Emeroo and Pindyin sandstones to  better determine the extent and reservoir potential of these formations  at its next well, "Kutjara-1", which will be drilled using modified  drilling techniques in an effort to improve drilling efficiencies and  lower costs. 

 The Kutjara-1 well location has a number of advantages, namely: 




        --  Recently acquired infill seismic has better defined the
            structure
        --  It is accessible from existing infrastructure
        --  The distance from Mulyawara-1 to Kutjara-1 reduces rig travel
            time
        --  Fault patterns isolate the migration pathway and potential
            source of Kutjara-1 from Mulyawara-1
        --  Recent hydrocarbon shows in the Mulyawara-1 well have
            demonstrated active petroleum systems in the Munaroo, Mundallio
            and Emeroo sections
        --  Mulyawara-1 has demonstrated that most of the Kutjara-1 well
            can be drilled using PDC bits, which offer drilling efficiency
            and should substantially lower the overall evaluation costs




 Ensign Rig #16 will shortly travel approximately 45 km south to this  second location, Kutjara-1, to commence drilling. 

 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. The second location, Kutjara-1, is a wildcat exploration  well and is still a high-risk venture which is yet to be proven. 

 Shareholder Rights Plan Adopted 

 A Shareholder Rights Plan (the "Rights Plan") has been adopted by the  Board of Directors to ensure the fair treatment of shareholders in  connection with any take-over offer for Rodinia, and to provide the  Board of Directors and shareholders with additional time to fully  consider any unsolicited take-over bid. The Rights Plan is subject to  approval by Rodinia's shareholders at Rodinia's upcoming annual general  and special shareholders' meeting, scheduled for Thursday, November 10,  2011 at 3:30 pm (Calgary time). If ratified by the shareholders, the  Rights Plan will have a term of three years.  The Rights Plan has been  approved by the TSX Venture Exchange. 

 Rodinia has not adopted the Rights Plan in response to any specific  proposal to acquire control of Rodinia. The Rights Plan is similar to  plans adopted by other Canadian companies and approved by their  shareholders. 

 The Rights Plan is not intended to prevent take-over bids.  Under the  Rights Plan, any such bid that meets certain requirements intended to  protect the interests of all shareholders will be deemed to be a  "Permitted Bid". Permitted Bids must be made by way of a take-over bid  circular prepared in compliance with applicable securities laws and  remain open for sixty days. 

 Under the Rights Plan, Rights have been issued and attached to all Class  A common shares of Rodinia issued and outstanding as of the close of  business on October 13, 2011. Rights will be issued upon any future  issuance of any Class A common shares of Rodinia that occurs prior to  the Separation Time (as defined in the Rights Plan). 

 In the event a take-over bid does not meet the Permitted Bid  requirements of the Rights Plan and the conversion of the Rights is  triggered pursuant to the provisions of the Rights Plan, the Rights  will entitle shareholders, other than any shareholder or shareholders  making the take-over bid, to purchase additional common shares in  Rodinia at a substantial discount to the market value at the time. 

 Corporate Matters 

 Rodinia announces that Peter Philipchuk has resigned as a director of  Rodinia for personal reasons and that Matthew Philipchuk, Executive  Vice-President, has resigned in order to pursue other business  opportunities in Australia, both effective immediately. Both Peter and  Matthew have been central to the founding and building of Rodinia, from  its inception to the present time. Paul Bennett, President and CEO of  Rodinia, in expressing his thanks on behalf of the Board stated: "The  insight and vision of both Peter and Matthew have been instrumental in  building Rodinia and in accumulating its very substantial land position  in the Officer Basin of Australia.   The Board thanks both of them for  their past service and wishes them well in their future endeavors." 

 Concurrently, Rodinia is recruiting for the position of Chief Operating  Officer, to lead its operations in Adelaide, South Australia. For  further information regarding this position please contact Mr. Sean  McBurney, Senior Client Partner at Korn/Ferry International at +1 (403)  215-2548. 

 Rodinia's Annual General and Special Meeting of Shareholders will be  held on Thursday November 10, 2011 at Rodinia's Conference Centre, Main  Floor, 715 5 Ave. SW, Calgary, Alberta, Canada beginning at 3:30 p.m.  (MT). 

 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, the  operation of the Rights Plan and the approval of the Rights Plan by  Rodinia's shareholders.  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.




Image with caption: "Rodinia's Extensive Land Base in the Officer Basin, South Australia. (CNW Group/Rodinia Oil Corp.)". Image available at:  http://photos.newswire.ca/images/download/20111013_C4053_PHOTO_EN_4577.jpg




Rodinia Oil Corp.


CONTACT:  Susan Showers, Manager, Investor RelationsRodinia Oil Corp.Suite 320, 715 - 5 Ave. S.W.Calgary, Alberta, Canada T2P 2X6Telephone: [phone]Toll Free: [phone]Fax: [phone]Email: [e-mail]: www.rodiniaoil.com 


    

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