2009-06-12-2008-11-01-2008-11-01

Farm out to earn 60% WI in 28 sections near Flat Lake Bakken oil field.

Pebble Petroleum Inc., a subsidiary of Ryland Oil Corp., Vancouver, (CDNX: RYD) has entered two farm-out agreements with Calgary-based TriAxon Resources Ltd. concerning acreage in southeastern Saskatchewan. The assets include interest in Ryland's 28 sections near the Flat Lake Bakken oil field. TriAxon is required to spud a test well by Dec. 31 at a location of its choice on 11 sections comprising the farm-out land. TriAxon may drill either a vertical stratigraphic or horizontal test well. Ryland has the option to participate in the test well as to 20% of the costs, in which it will retain a 60% working interest with TriAxon earning the remaining 40%. If Ryland does not participate, TriAxon will pay 100% of drilling costs to earn a 50% working interest. If a vertical test well is drilled, TriAxon's earning will be limited to five of the 11-section farm-out lands and it will have a continuous right to drill and earn the balance of the farm-out land. If a horizontal well is drilled, TriAxon will earn all 11 sections. In either event, TriAxon's working interest will be restricted to hydrocarbons within the Bakken formation, with Ryland retaining a 100% gross and net working interest in all other zones. After drilling the initial test well, TriAxon also has the option to drill an additional well on a location of its choice to earn another 11-section farm-out block under the same terms. Ryland's second farm-out requires TriAxon to spud a test well by Dec. 31 on six sections. TriAxon may elect to drill either a vertical stratigraphic or a horizontal test well. TriAxon will pay 100% of drilling costs, complete and equip the well to earn a 70% working interest. If TriAxon drills a vertical test well, it will earn a 70% working interest in four of the six sections with the option to drill an additional well to earn the remaining sections. If TriAxon drills a horizontal Bakken test well, it will earn a 70% working interest in all six sections comprising the farm-out land. In either event, TriAxon's working interest will be restricted to petroleum substances within the Bakken formation, with Ryland retaining a 100% gross and net working interest in all other zones. Ryland chairman Dick Findley says, "With approximately 572 sections of land to explore and develop, it makes good business sense for Ryland to look for strategic partners to assist in accelerating our exploration and development program. By farming out to TriAxon we are gaining access to additional rigs and drilling expertise while better leveraging our capital. TriAxon is an established and successful operator in the Bakken formation in southeastern Saskatchewan, and they concentrate exclusively on developing low permeability reservoirs with horizontal, multi-stage-fracture-stimulated wells."