April 21, 2009
RYLAND OIL ANNOUNCES ENGAGEMENT OF GMP SECURITIES AS FINANCIAL ADVISOR
Vancouver, B.C. -- Ryland Oil Corporation announces that it has engaged GMP Securities LP as a financial advisor and agent to assist the Company in reviewing and assessing corporate strategies, which may include a sale or merger of the Company, an asset sale, or a teaming agreement with one or more industry partners. Ryland has agreed to pay GMP a success fee on the closing of any transaction, calculated as a percentage of the transaction's value.
Not an unexpected move in the current market situation for a junior. Ryland has a very impressive acreage(over 500 net sections) in the Saskatchewan and North Dakotan Bakken, but there is something not quite right about the company. An a American company called Eternal Energy Corp.(OTCBB:EERG) claims to own "a five percent (5%) overriding royalty interest in 345,212 acres leased to Ryland Oil Corporation". 5% overriding royalty interest on the company's entire acreage is a pretty significant thing, yet I've found no mention of this royalty contract on Rylands site. Also the publishing of the company's drilling results seems to take an unusually long time.
The three obvious buyer/merger candidates are Crescent Point, Tristar Oil & Gas and Petrobank.
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