Rancher Energy Completes
Acquisition of Two High Caliber Oil Projects—South Glenrock B
& Cole Creek South
DENVER,
CO--December 27, 2006--Rancher Energy Corp. (OTC BB: RNCH.OB
-- News ) (“Rancher Energy” or the
“Company”) is pleased to announce that it has closed
the acquisition of two producing oil fields in Wyoming’s
Powder River basin. The newly acquired South Glenrock B and Cole
Creek South fields feature existing production as well as excellent
potential for enhanced oil recovery (EOR) using carbon dioxide
(CO2) injection.
On December 22,
2006 Rancher Energy successfully completed the acquisition of the
South Glenrock B and Cole Creek South fields. Both acquisitions are
effective December 1, 2006. Rancher Energy acquired a 93.73%
working interest (74.08% net revenue interest) in the South
Glenrock B field consisting of approximately 7,070 acres in
Wyoming's Powder River Basin for a purchase price of $36,670,000.
South Glenrock B field’s current gross production is about
210 barrels per day of primarily 35 degree sweet crude by existing
waterflood operations.
Located in
Converse County immediately outside the town of Glenrock, Wyoming,
and bisected by Interstate 25, South Glenrock B produces from the
Dakota and Muddy sandstone reservoirs that are draped over a
structural nose with 1600 feet of relief. Updip trapping is
provided by westward transition into tighter rock. Production is
maintained by secondary recovery efforts initiated in 1961. The
field was discovered by Conoco in 1950 and contained nearly 300
active oil wells by 1957.
The total South
Glenrock field is organized into three units—Unit A produces
primarily from the Dakota formation, Unit B produces primarily from
the Lower and Upper Muddy formations as well
