HOUSTON, July 24 /EMWNews/ -- Resaca ("Resaca" or "the

Company"), an independent oil and gas exploitation company based in

Houston, Texas, is pleased to announce its initial public offering on the

AIM market of the London Stock Exchange was completed on July 17, 2008,

under the stock ticker "RSOX".



    



    Resaca's activities are currently focused on the exploitation of its

portfolio of long-life properties, which have high levels of original oil

in place, utilizing a variety of primary, secondary and tertiary recovery

techniques. Resaca's business plan is to acquire and exploit oil reserves

through the implementation of these techniques and procedures, which will

achieve maximum recoveries of the original oil in place. By utilizing these

techniques, Resaca should be able to double or triple recovery rates from

the oil fields that it acquires. Resaca's future plans include the

injection of sequestered CO2 into oil reserves, which will both benefit the

environment and supply energy to assist with shortages in fuel supplies.



    Resaca's current properties comprise a number of oil & gas fields

located in the Permian Basin of West Texas and Southeast New Mexico. The

primary fields, which contain 88 percent of Resaca's current proved and

probable reserves, produce from shallow formations at average depths of

less than 4,000 feet.






    Placing Statistics:



    Number of Common Shares in issue immediately prior to

     Admission                                                    59,945,609

    Number of New Common Shares being issued pursuant to

     the Placing                                                  32,313,130

    Number of Sale Shares being placed on behalf of the

     Selling Shareholders                                          8,686,870

    Placing Price                                                       130p

    Number of Common Shares in issue immediately following

     Admission                                                    92,258,739

    Market capitalization of the Company at

     the Placing Price at Admission                     119.9 million pounds

    Estimated net proceeds of the Placing

     receivable by the Company                           38.8 million pounds





    Highlights:



    -- Successful fundraising by its joint brokers, Seymour Pierce and RBC

Capital Markets, of pounds Sterling 53.3 million ($105.5 million) comprised

42.0 million pounds ($83.2 million) for the Company and 11.3 million pounds

($22.4 million) for existing shareholders through an institutional placing

of 41,000,000 Common Shares (the "Placing") at a placing price of 130 pence

per share ("Placing Price")



    -- Market capitalization of the Company at the Placing Price at

Admission of 119.9 million pounds ($237.5 million)



    -- As at 1 January 2008, Resaca had proved and probable reserves of

28.1 MMbbIs of oil and 19.3 Bcf of gas with an after tax NPV10 of $423.7

million



    -- Resaca's exploitation operations will involve the application of

current technology to its mature oil and gas properties, including through

secondary waterfloods and the intended use of CO2 for tertiary recovery



    -- Net production from proved and probable reserves on all the

Company's properties is projected to be 3,700 boe/d through primary and

secondary recovery by the end of 2011 and to exceed 6,700 boe/d through the

addition of tertiary recovery by the end of 2014. During 2007, Resaca's

average net revenue interest production was approximately 760 boe/d



    -- The net proceeds of the Placing receivable by the Company will

provide significant further equity capital for the Company, strengthen the

Company's capital base and put Resaca in a strong position to progress its

business strategy



    -- Resaca intends to review opportunities to expand into new assets

which may include the acquisition of additional interests in the Permian

Basin and other basins within and, in the longer term, outside the US



    -- Resaca is committed to the use of tertiary recovery methods such as

CO2 injection to significantly increase production rates from its current

properties and future acquisitions



    Commenting on the Placing, Jay Lendrum, Chief Executive Officer, said:



    "We are delighted to have commenced dealings on the AIM market of the

London Stock Exchange against what is a challenging global economic

backdrop. The response we have received from investors to our

oversubscribed Placing has been very encouraging.



    "Resaca is committed to the use of tertiary recovery methods such as

the injection of sequestered CO2 into oil reserves. These methods will not

only enable the Company to double or triple production rates, but will also

benefit the environment by reducing emissions into the atmosphere.



    "We look forward to updating shareholders on our progress, both in

terms of increasing production output and reviewing potential opportunities

for new assets to expand our interests in the Permian Basin and in the

longer term, outside the US."

    About Resaca



    Resaca is an independent oil and gas development and production company

based in Houston, Texas. Resaca's activities are currently focused on the

exploitation of its portfolio of long-life properties, which have high

levels of original oil in place, utilizing a variety of primary, secondary

and tertiary recovery techniques. These properties are located in the

Permian Basin of West Texas and Southeast New Mexico.



    Through its relationship with Torch Energy Advisors Incorporated, a

privately owned, Houston-based company, Resaca has access to an experienced

team with a long and successful history of owning and operating oil and gas

projects, having been responsible for the investment and management of over

US$3 billion in the energy industry.



    The net proceeds of the Placing receivable by the Company will provide

significant further equity capital for the Company, strengthen the

Company's capital base and put Resaca in a strong position to progress its

business strategy and take advantage of future acquisition and development

opportunities as and when they arise.



    In particular, Resaca intends to use the proceeds of the Placing to

finance its planned exploitation program in West Texas and Southeast New

Mexico; acquire additional interests in the properties and in adjacent

properties; and examine other potential opportunities in the US and other

areas outside the US as they arise.



    Strategy for growth



    The Company intends to create long-term shareholder value by exploiting

its portfolio of long-life properties, which have high levels of original

oil in place, through a variety of exploitation techniques and modern

technologies encompassing primary, secondary and tertiary recovery. Resaca

intends to acquire additional oil and gas properties with similar

exploitation potential. Resaca's business strategy involves the

exploitation of proved developed reserves with associated proved

undeveloped and probable reserves. As opposed to exploration operations,

all of the value in an exploitation operation is in the reserves and

exploitation operations have minimal geological risk. Resaca's exploitation

efforts will involve the application of current technology to mature oil

and gas properties, including infill drilling, well deepening, uphole

re-completions, waterfloods, foamed acid fracturing procedures and CO2

flooding.



    PROJECTS AND OPERATIONS



    Summary of Properties Owned by Resaca



    The Properties are located in West Texas and Southeast New Mexico on

the Central Basin Platform of the Permian Basin and consist of

approximately 15,000 gross/14,000 net acres contained in three main field

complexes and a group of minor fields. The Company's primary fields, which

contain 88 per cent. of Resaca's current proved and probable reserves, are

the Cooper Jal Unit in Lea County, New Mexico; the Penwell Complex in Ector

and Crane Counties, Texas; and the Grand Clearfork Unit in Pecos County,

Texas (the "Primary Properties"). Primary and secondary (waterflood)

techniques are projected to increase estimated net production from proved

and probable reserves on all the Company's properties to over 3,000 bo/d

and 4,000 Mcf/d by the end of 2011. Additional probable oil reserves are

projected to be accessed through tertiary recovery (CO2 flood) techniques

which are estimated to build net production to over 6,200 bo/d and over

3,300 Mcf/d by the end of 2014.



    The Primary Properties currently produce from the Yates, Seven Rivers,

Queen, Grayburg, San Andres, Clearfork and Tansil formations. The Primary

Properties include approximately 171 producing wells, 59 injection wells

and 25 shut-in wells. Resaca's exploitation plan, which was initiated in

2006, is to reactivate most of the shut-in wells, reactivate and seek to

optimise the existing waterfloods and conduct a significant infill drilling

program. The Directors believe that the Primary Properties represent

excellent opportunities for the development of low risk oil reserves.

Resaca has initiated the first phase of its waterflood optimization program

through the successful drilling and completion of nine new infill wells,

re-completion of 13 existing wells and modernization and upgrading of

surface facilities.



    The first stage of Resaca's waterflood optimization program is to

re-establish a waterflood in the Cooper Jal Unit. Resaca has re-entered

five abandoned wells and has converted them to water injector wells. Resaca

is in the process of completing the clean out of thirteen existing injector

wells.



    In addition, the Directors believe the Primary Properties are excellent

candidates for tertiary recovery by CO2 flooding. The use of CO2 for this

type of enhanced recovery has revitalised many older proven oil producing

fields in the Permian Basin. Several major companies are operating CO2

floods in the region. Therefore, the Directors believe CO2 flooding

provides a potential means to further enhance the value of the Primary

Properties.



    DIRECTORS AND OFFICERS



    The Board comprises, and will immediately following Admission comprise,

the individuals set out below.



    James Perry ("J.P.") Bryan, Jr., Non-executive Chairman of Resaca, aged

68



    Mr. Bryan is the Chief Executive Officer of Torch. During his 40-year

career in the energy industry, Mr. Bryan has served as President, Chief

Executive Officer and Chairman of the Board of various independent

exploration and production companies, including Bellwether Exploration

Company, Nuevo Energy Company and Gulf Canada Resources Limited. He was

also Chairman of the Board and Chief Executive Officer of Torch and its

predecessor company. He is a former Member of the Board of Directors of

AutoNation, Inc., which sells new and used automobiles. Mr. Bryan earned a

Bachelor's of Arts degree and a law degree from the University of Texas. He

also received a degree in international business from the American

Institute of Foreign Trade (Thunderbird).



    John James ("Jay") Lendrum, III, Chief Executive Officer and Director

of Resaca, aged 57



    Mr. Lendrum became Chief Executive Officer of Resaca in August 2007. He

re-joined Torch as its President and Chief Operating Officer in 2005 having

previously worked at Torch from 1986 to 1993. Between 1993 and 2005, he was

founder and President of Rockport Resources Capital Corporation, a firm

that specialised in providing capital to the energy industry, and has been

a principal in a private mid stream gas company. Mr. Lendrum previously

served as Executive Vice President and Chief Financial Officer of Torch and

was involved in the management of Nuevo Energy Company, Bellwether

Exploration Company, and Energy Assets International Corporation. He was

also Executive Vice President and Chief Financial Officer of a private oil

and gas exploration company for four years and worked with KPMG Peat

Marwick for seven years. Mr. Lendrum graduated from the University of Texas

in 1973 with an undergraduate degree in Finance and completed his graduate

studies in Accounting Theory. He is also on the Board of Directors of BPZ

Energy, a company with oil and gas activities in South America.



    Dennis Hammond, President and Chief Operating Officer of Resaca, aged

52



    Mr. Hammond joined Torch as the President and Chief Operating Officer

of Resaca in August 2007. He has over twenty nine years of progressive

experience in petroleum engineering. Mr. Hammond began his career with

Chevron in 1978 and worked with both major and independent oil companies

over the course of his career. Mr. Hammond was formerly a Vice President of

Torch and subsequently became Vice President of Nuevo Energy Company when

it was formed in 1990. While at Nuevo, he managed all of the company's

operations and engineering efforts. In 2002, he co-founded Everlast Energy

and subsequently co-founded Five Point Energy, both of which were

successful acquisition and exploitation firms. Mr. Hammond holds a Bachelor

of Science degree in petroleum engineering from Texas A&M University and is

a registered professional engineer in the State of Texas.



    John William Sharp Bentley, Non-executive Director, aged 60



    Mr. Bentley has over 35 years' experience in the natural resources

sector. He was Managing Director of Gencor's Brazilian mining company, Sao

Bento Mineracao, during the period 1988 to 1993 when he became Chief

Executive Officer of Engen's Exploration and Production ("E&P") division.

In 1996, he was instrumental in spinning off Energy Africa Limited from

Engen and listing it on the Johannesburg and Luxembourg stock exchanges. As

Chief Executive Officer during its first five years, he guided Energy

Africa Limited through its development into one of the leading independent

E&P companies in Africa. More recently he was Executive Chairman of

FirstAfrica Oil plc from September 2006 until its acquisition by BowLeven

plc in early 2007. He is non-executive chairman of CDS Oil & Gas Group Plc,

Faroe Petroleum plc and Artumas Group Inc. and a non-executive director of

Rift Oil plc. Mr. Bentley holds a degree in Metallurgy from Brunel

University.



    Judy Ley Allen, Non-executive Director, aged 69



    Ms. Allen has, since 1977, been an asset manager for Allen Investments,

which has significant holdings in oil and gas, real estate, timberland and

stocks and bonds. She is a former director of the Federal Reserve Bank of

Dallas and currently sits on the Advisory Board of Governors of Rice

University. She is an advisory trustee of the Houston Ballet Foundation and

a trustee of the Houston Museum of Natural Science. Ms. Allen received a

Bachelor of Arts degree from Stanford University and a Master's degree in

Business Administration from Harvard Business School.



    Richard Kelly Plato, Non-executive Director, aged 38



    Mr. Plato is Senior Vice President and Managing Director of NGP Capital

Resources Company (Nasdaq: NGPC), a publicly traded financial services

company organised to invest, primarily, in small and mid-size private

energy companies. Mr. Plato has 15 years of investment management,

corporate finance, engineering and general management experience in the

energy industry. Mr. Plato also serves on the Board of Managers of one of

NGP's portfolio companies, Rubicon Energy Partners, LLC. Prior to joining

NGP, Mr. Plato was a co-founder and partner of Odyssey Energy Capital, LLC,

a private capital provider to the energy industry. Prior to Odyssey, Mr.

Plato served in various management positions with Mirant Americas Energy

Capital, LP, Tri-Union Development Corporation and Fina Oil and Chemical

Company. Mr. Plato earned a Bachelor of Science degree in Petroleum

Engineering from Texas A&M University and a Doctorate of Jurisprudence from

South Texas College of Law.