LITTLETON, Colo., Oct. 28 /PRNewswire-FirstCall/ -- Eternal Energy Corp. (OTC Bulletin Board: EERG; the "Company") announces it is now receiving revenues from over-riding royalty interests ("ORRI") in certain Ryland Oil Corporation (TSX VENTURE:RYD, "Ryland") projects. These revenues result from recent successful drilling in the Bakken reservoir by Ryland and its joint venture partner, TriAxon Resources Ltd ("TriAxon"). TriAxon, based in Calgary, is an operator in southeast Saskatchewan with a focus on developing low-permeability reservoirs, such as the Bakken, using horizontal wells completed with multi-stage fracture treatments. Recently, the joint venture drilled and put on production a well in the Flat Lake area of southeast Saskatchewan. EERG owns a five-percent (5%) ORRI on all Bakken production in 37,920 acres and a four-percent (4%) ORRI on all Bakken production in an additional 14,080 acres in the Ryland/Triaxon joint venture project area.
According to Ryland, the recent well, located at 1-22-1-14W2, was put on artificial lift in August of this year. It is located approximately 7 miles northeast of the initial producing well drilled by TriAxon on a contiguous lease block owned by Ryland. The new well is currently producing approximately 200 barrels of oil per day at a 35% water cut and a high pumping fluid level. In recent press releases, Ryland management announced that it "is encouraged by the results from the new well to date and the development potential of its substantial acreage position in the area."
TriAxon recently spudded its fourth well on Ryland's Bakken lands. This well is located approximately 4 miles northeast of the new producer. In addition, Ryland has announced that TriAxon has elected to drill another joint-venture well scheduled for January, 2010, to be located about 5 miles west of the new producer. The drilling activity to date has enabled the Ryland acreage position to be converted from short-term license status to long-term leasehold.
About Eternal Energy Corp.:
Eternal Energy Corp. is an oil and gas company engaged in the exploration of petroleum and natural gas. The company was incorporated in Nevada on July 25, 2003 to engage in the acquisition, exploration, and development of natural resource properties.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"' for forward-looking statements. Certain information included in this press release contains statements that are forward-looking, such as statements relating to the future anticipated direction of the industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, potential contracts, and/or aspects of litigation. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of, Eternal Energy Corp. These risks and uncertainties include, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, and domestic and global economic conditions.
SOURCE Eternal Energy Corp.
