Attached files

EXHIBIT 99.1

RANCHER  ENERGY CORP.  FILES FOR CHAPTER 11  REORGANIZATION;  NORMAL  OPERATIONS
CONTINUING AND UNAFFECTED

October 28, 2009 6:56 PM ET

Rancher Energy Corp. (OTCBB: RNCH) today announced that it has filed a voluntary
petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

Rancher Energy Corp.  intends to continue normal business  operations  today and
throughout its reorganization process. Specifically, it expects to continue to:

     --   Provide employee wages, healthcare coverage,  vacation, sick leave and
          similar benefits without interruption; and

     --   Pay   suppliers   for  goods  and   services   received   during   the
          reorganization process.

"Rancher  Energy is  committed  to  continuing  its  business  and  successfully
emerging from the  reorganization  process," said Jon Nicolaysen,  President and
CEO.  "To be  clear,  we filed to  restructure  our  debt and  finances  and our
customers and employees can be confident that we intend to keep producing oil."

"By  filing  for  Chapter  11,  we will now have the time and  legal  protection
necessary to obtain additional financing and enhance our liquidity."

Rancher  Energy's  Chapter 11 case was filed today in U.S.  Bankruptcy Court for
the District of Colorado.  Rancher will be filing motions with the Court seeking
interim  relief  that will  ensure the  Company's  continued  ability to conduct
normal operations, including the ability to:

     --   Provide employee wages, healthcare coverage,  vacation, sick leave and
          similar benefits without interruption;

     --   Use cash collateral to pay employees, suppliers and vendors; and

     --   Retain necessary professionals to assist in the reorganization.


Rancher Energy's principal bankruptcy counsel is Dufford & Brown, P.C.


About Rancher Energy Corp.


Rancher  Energy Corp.  develops and produces oil in North  America.  It operates
three fields, including the South Glenrock B Field, the Big Muddy Field, and the
Cole Creek South Field in the Powder River Basin,  Wyoming in the Rocky Mountain
region  of the  United  States.  The  company  was  formerly  known  as  Metalex
Resources,  Inc.  and changed its name to Rancher  Energy  Corp.  in April 2006.
Rancher  Energy  Corp.  was  founded  in 2004 and is  headquartered  in  Denver,
Colorado.



Safe Harbor  Statement  under the Private  Securities  Litigation  Reform Act of
1995:

Statements  contained in this press release that are not historical facts may be
forward-looking  statements  as that item is defined in the  Private  Securities
Litigation  Reform Act of 1995.  Forward-looking  statements  involve  risks and
uncertainties  that could result in actual  results  differing  materially  from
expected results and represent the Company's expectations and beliefs concerning
future  events based on  information  available to the Company as of the date of
this press release.  The Company  undertakes no obligation to publicly update or
revise any  forward-looking  statements to reflect events or circumstances  that
may arise after the date of this press release. Additional information regarding
risk factors that may affect future  performance at the Company are contained in
the Company's SEC filings, including without limitation, the Company's Form 10-K
for its fiscal year ended March 31, 2009.

CONTACT:
Rancher Energy Corp. Investor Relations
(303) 629-1125