Richards Oil & Gas Limited Provides Thorsby Area Operational Update

Richards Oil & Gas Limited is providing an update on its production levels and activities at the Company’s Thorsby property.

As previously reported, production at Thorsby from the wellbores completed in the Edmonton Sands began on December 15, 2008. After being on production for several days, two of the wells (2.0 net) experienced production declines as a result of formation water entering the wellbores and inhibiting gas flow. The Company is currently evaluating production alternatives to remove the water from the wellbores and configuring the gathering system to allow for the production of water in association with the natural gas. As a result, the Company’s production from the Thorsby area was approximately 400 mcf per day for the month of December and approximately 100 mcf per day in January.

The Company is awaiting regulatory approval of a co-mingling application regarding production from wells completed in the Horseshoe Canyon coals plus Edmonton and Horseshoe Canyon sands. This approval, once received, will allow the Company to produce from multiple zones in the nine wells (6.9 net) that are currently tied in at Thorsby.