Rodinia Oil Corp. completes drilling of its second well ("Kutjara-1")

    




 CALGARY, Dec. 12, 2011 /CNW/ -  - 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.  

Rodinia Oil Corp.


CONTACT:  Rodinia 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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