SOUTHLAKE, Texas, Dec. 28, 2016 (GLOBE NEWSWIRE) -- Rangeford Resources, Inc. (OTCQB:RGFR) announced today that its wholly owned subsidiary Cherryvale Kansas, LLC, executed a purchase and sale agreement on December 26, 2016 with Dog Day, Inc., a Texas Corporation, headquartered in Nacogdoches, Texas for the acquisition of certain oil and gas leases covering approximately 800 gross acres of land located in Labette County, Kansas that includes DDI’s interest in approximately 53 wells that are either currently producing, permitted, proposed, and/or shut-in. The financial structure is favorable to Rangeford Resources, Inc. as the seller note is solely from oil production and is non-recourse to Rangeford Resources, Inc.
Thomas Lindholm, Chief Executive Officer, stated, “I’m proud of our management team and strategic partners who made this possible. The Cherryvale acquisition adds an oil and gas asset with considerable upside in reserves and future cash flow without significant dilution to our shareholders or debt recourse to Rangeford Resources, Inc. We believe applying today's technology of shallow horizontal drilling and nanotechnology enhanced water flooding can enhance the ultimate oil recovery in under-exploited fields. We expect to make additional acquisitions to take advantage of the opportunities in today’s oil and gas market.”
The Company’s own geological and geophysical analysis estimates ultimate recovery of up to two million barrels upon completion of a development plan. The stacked pay zones offer significant opportunities to produce low risk reserves with a combination of re-completions, drilling new wells and implementing a water flood program.
Management intends to drill horizontal wells in the shallow Dennis Sands not previously produced and drill test wells down to the Mississippi Lime formation. The drilling plan also includes a polymer water flood operation to start oil production from the Bartlesville formation.
For a full description of the transaction, see the Company’s current report on Form 8-K dated December 26, 2016.
About Rangeford Resources, Inc.: Rangeford Resources, Inc. is a Texas-based, oil and gas exploration and production company. For further information on the Company, please visit our website www.rangeford-resources.com.
