Ryland’s broad exploration strategy focuses on unconventional exploration properties with potential for significant reserves that are analogous to the Bakken Formation being developed throughout the Williston Basin in Montana, North Dakota and Saskatchewan.

The Elm Coulee Field is the first major Bakken discovery in the basin . The field had peak primary production of 53,000 barrels per day and is currently producing approximately 42,000 barrels of oil per day with estimated ultimate recovery between 300 and 500 million barrels of oil. The significance of the Bakken Formation is that it is a low permeability oil bearing zone which was long thought uneconomic to develop.

Elm Coulee was commercialized by developing and applying horizontal drilling techniques with fracture stimulation to enhance the productivity of the low permeability oil reservoir. Two members of the Company's senior management team were directly involved in the exploration and development of the Elm Coulee field. Mr. Dick Findley, the Company's Chairman, was credited with the discovery of the Elm Coulee Field. (In recognition of his work, Mr. Findley was named Outstanding Explorer of the Year by the American Association of Petroleum Geologists in 2006). Mr. Tom Lantz, Vice President Engineering, oversaw the initial development of Elm Coulee while employed as Asset Manager for Halliburton Energy Services. The Company believes the there is significant potential to exploit similar reservoirs worldwide.

The Company believes that it has assembled a management team with the experience and expertise necessary to identify and pursue these opportunities.