EX-99.1
3
v062097_ex99-1.htm
Rancher
Energy Completes Acquisition of
Highly
Prospective Big Muddy Oil Field
DENVER,
CO - January 8, 2007 - Rancher Energy Corp. (OTC BB:RNCH.OB
-
News)
("Rancher Energy" or the "Company") is pleased to announce that it has closed
the acquisition of the Big Muddy oil field in Wyoming's hydrocarbon-rich Powder
River Basin. Rancher Energy has successfully acquired a 100% working interest
(approximately 80% net revenue interest) in an approximately 8,500 acres field
for a purchase price of $25,000,000. The newly acquired Big Muddy field features
existing production of about 60 barrels per day as well as excellent potential
for enhanced oil recovery (EOR) using carbon dioxide (CO2) injection.
The
Big
Muddy field is located in Converse County, Wyoming along the South bank of
the
North Platt River some 18 miles east of Casper, Wyoming and 2-1/2 miles west
of
Glenrock, Wyoming. It was discovered in 1916 and originally operated by Conoco.
It has produced approximately 52 million barrels of oil (MMBO) from several
producing zones including the Wall Creek, Stray, Shannon, Dakota, Lakota, Muddy
and Niobrara formations-with 32 MMBO produced from the Wall Creek formation
alone. In 1919, nearly 10,000 barrels of oil per day were produced from the
field, making the Big Muddy field the second most prolific field in the State
of
Wyoming, after the Salt Creek field, some 50 miles to the north, which
is
currently benefiting from a successful CO2 injection program by the Anadarko
Petroleum Corporation. Prior
to
closing the acquisition Rancher Energy contracted with Environmental Resources
Management ("ERM"), a global leader in environmental consulting services, to
conduct an environmental review of the field. On September 1, 2006, ERM
delivered the report revealing no material environmental problems.
This
new
acquisition significantly increases Rancher Energy's presence in the Powder
River Basin. The Company also holds interests in the South Glenrock B field
of
approximately 7,070 acres and the Cole Creek South field of approximately 2,080
acres. All three fields hold excellent
potential for EOR using CO2 injection.
"We
are
thrilled to add the Big Muddy Field to Rancher Energy's growing roster of high
potential, low risk oil plays in the Powder River Basin", remarked John Works,
President & CEO of Rancher Energy. "Closing the Big Muddy field acquisition
is a tremendous accomplishment for our young company, one that adds existing
production as well as potential for developing a significant amount of remaining
oil. We believe this latest development is an excellent indicator of our
potential for growth and ability to execute on our objectives".
ABOUT
THE
COMPANY
Rancher
Energy Corp. focuses on the oil & gas sector by specializing in evaluating
older, historically productive fields in order to determine their potential
for
secondary and tertiary recovery. Management will determine the economics, and
where viable, proceed with development of the assets into producing wells.
Current high oil & gas prices alongside advances in technology make these
assets an attractive source of potentially recoverable oil & gas.
Forward-Looking
Statements:
This
press release includes forward-looking statements as determined by the U.S.
Securities and Exchange Commission (the "SEC"). All statements, other than
statements of historical facts, included in this press release that address
activities, events, or developments that the Company believes or anticipates
will or may occur in the future are forward-looking statements. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the actual results, performance or achievements
of the Company to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. Such
factors include the Company's ability to obtain additional financing to acquire
the three properties it has contracted to purchase in the Powder River Basin,
obtaining financing to construct pipeline and other infrastructure and for
other
operational and working capital purposes, the uncertainty of recovery factors
for the EOR projects, the volatility of oil prices, general economic and
business conditions, and other factors over which the Company has little or
no
control. The Company does not intend (and is not obligated) to update publicly
any forward-looking statements. The contents of this press release should be
considered in conjunction with the warnings and cautionary statements contained
in the Company's recent filings with the SEC.
ON
BEHALF
OF THE BOARD
Rancher
Energy Corp.
John
Works, President
Contact:
Investor
Relations Contact:
Great
Northwest Investor Relations Inc.
1-866-375-RNCH
(7624)
Visit
our
website at www.rancherenergy.com

EX - 99 . 1 3 v062097 _ ex99 - 1 . htm Rancher Energy Completes Acquisition of Highly Prospective Big Muddy Oil Field DENVER , CO - January 8 , 2007 - Rancher Energy Corp . ( OTC BB : RNCH . OB - News ) ( " Rancher Energy " or the " Company " ) is pleased to announce that it has closed the acquisition of the Big Muddy oil field in Wyoming 's hydrocarbon - rich Powder River Basin . Rancher Energy has successfully acquired a 100 % working interest ( approximately 80 % net revenue interest ) in an approximately 8,500 acres field for a purchase price of $ 25,000,000 . The newly acquired Big Muddy field features existing production of about 60 barrels per day as well as excellent potential for enhanced oil recovery ( EOR ) using carbon dioxide ( CO2 ) injection . The Big Muddy field is located in Converse County , Wyoming along the South bank of the North Platt River some 18 miles east of Casper , Wyoming and 2 - 1 / 2 miles west of Glenrock , Wyoming . It was discovered in 1916 and originally operated by Conoco . It has produced approximately 52 million barrels of oil ( MMBO ) from several producing zones including the Wall Creek , Stray , Shannon , Dakota , Lakota , Muddy and Niobrara formations - with 32 MMBO produced from the Wall Creek formation alone . In 1919 , nearly 10,000 barrels of oil per day were produced from the field , making the Big Muddy field the second most prolific field in the State of Wyoming , after the Salt Creek field , some 50 miles to the north , which is currently benefiting from a successful CO2 injection program by the Anadarko Petroleum Corporation . Prior to closing the acquisition Rancher Energy contracted with Environmental Resources Management ( " ERM " ) , a global leader in environmental consulting services , to conduct an environmental review of the field . On September 1 , 2006 , ERM delivered the report revealing no material environmental problems . This new acquisition significantly increases Rancher Energy 's presence in the Powder River Basin . The Company also holds interests in the South Glenrock B field of approximately 7,070 acres and the Cole Creek South field of approximately 2,080 acres . All three fields hold excellent potential for EOR using CO2 injection . " We are thrilled to add the Big Muddy Field to Rancher Energy 's growing roster of high potential , low risk oil plays in the Powder River Basin " , remarked John Works , President & CEO of Rancher Energy . " Closing the Big Muddy field acquisition is a tremendous accomplishment for our young company , one that adds existing production as well as potential for developing a significant amount of remaining oil . We believe this latest development is an excellent indicator of our potential for growth and ability to execute on our objectives " . ABOUT THE COMPANY Rancher Energy Corp . focuses on the oil & gas sector by specializing in evaluating older , historically productive fields in order to determine their potential for secondary and tertiary recovery . Management will determine the economics , and where viable , proceed with development of the assets into producing wells . Current high oil & gas prices alongside advances in technology make these assets an attractive source of potentially recoverable oil & gas . Forward - Looking Statements : This press release includes forward - looking statements as determined by the U . S . Securities and Exchange Commission ( the " SEC " ) . All statements , other than statements of historical facts , included in this press release that address activities , events , or developments that the Company believes or anticipates will or may occur in the future are forward - looking statements . Such forward - looking statements involve known and unknown risks , uncertainties and other factors , which may cause the actual results , performance or achievements of the Company to be materially different from any future results , performance or achievements expressed or implied by such forward - looking statements . Such factors include the Company 's ability to obtain additional financing to acquire the three properties it has contracted to purchase in the Powder River Basin , obtaining financing to construct pipeline and other infrastructure and for other operational and working capital purposes , the uncertainty of recovery factors for the EOR projects , the volatility of oil prices , general economic and business conditions , and other factors over which the Company has little or no control . The Company does not intend ( and is not obligated ) to update publicly any forward - looking statements . The contents of this press release should be considered in conjunction with the warnings and cautionary statements contained in the Company 's recent filings with the SEC . ON BEHALF OF THE BOARD Rancher Energy Corp . John Works , President Contact : Investor Relations Contact : Great Northwest Investor Relations Inc . 1 - 866 - 375 - RNCH ( 7624 ) Visit our website at www.rancherenergy.com
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