Alberta Clipper Energy Inc. (ACN - TSX) Announces Acquisition of a Private Company in its Western Alberta Core Area and 2008 Second Half Capital Budget



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    ALBERTA CLIPPER MAKES STRATEGIC CORPORATE ACQUISITION
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    CALGARY, June 16 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper"
or the "Company") advises that it has entered into an Agreement, (the
"Arrangement Agreement") with a Private Company pursuant to which Alberta
Clipper will acquire all of the issued and outstanding common shares of the
Private Company, including a positive working capital balance of $9 million,
by way of a Plan of Arrangement under the Business Corporations Act (Alberta)
(the "Arrangement") for total consideration of $34.25 million in cash and
Alberta Clipper shares (ranging from a minimum of 50% shares to a maximum of
60% shares). After giving consideration for the positive working capital
surplus, the net acquisition cost is $25.25 million. The Private Company has
agreed to deliver 61 % of their issued and outstanding shares to Alberta
Clipper by way of lock-up agreements.
    The Private Company assets are strategically located in Alberta Clipper's
Western Alberta core area and are comprised of 1.665 mmboe of
proved-plus-probable reserves, as estimated by Sproule Associates Limited and
approximately 400 boe/d of concentrated, 100% working-interest production
(100% natural gas and associated liquids). With the Arrangement, the Company
will acquire 8.4 townships of 3D seismic data and 87,200 acres of undeveloped
land organized in large contiguous blocks at an average working interest of
58%. Opportunities identified on the Private Company lands exhibit both high
impact exploration and significant scalable resource development potential,
which should allow the Company to double the Private Company's production by
the end of the first quarter of 2009. Of particular note, the strategic
acquisition increases Alberta Clipper's exposure to the Montney tight gas play
by over 60% from its current 57 net sections to 92 net sections.
    The corporate acquisition is expected to close on or before July 31,
2008.
    The highlights associated with the Acquisition are set forth below:

    
    1. Purchase Price:                C$ 34.25 million

                 Less:                C$ 9.0 million working capital surplus

                                      C$ 5.1 million undeveloped land value

       Reserve Acquisition Price      C$ 20.15 million

    2. Long Life Reserves:

       -   1.665 mmboe proved-plus-probable reserves as estimated by
           Sproule Associates Limited.
       -   Acquisition cost of $12.10 per boe proved-plus-probable based on
           estimates by Sproule Associates Limited.
       -   Long Reserve Life Index of approximately 11 years
           proved-plus-probable.

    3. High Netback Production:

       -   Approximately 400 boe/d (100% gas)
       -   $38 netback (at C$10.00/gj AECO)
       -   Acquisition cost of $50,375 per producing boe.

    4. Strong Recycle Ratio:

       -   3.1 times recycle ratio based on acquisition cost and
           Sproule Associates Limited estimates of vendor's
           proved-plus-probable reserves.

    5. Net Operating Income Multiple:

       -   3.6 times (at C$10.00/gj AECO)

    6. Significant Drilling Upside:

       -   Significant scalable development drilling project at up to
           100% working interest
       -   4 near-term (H2- 2008) drilling locations (3.5 net) representing
          (greater than) 450 boe/d of risked production additions
       -   Multiple future development drilling and re-completion
           opportunities

    7. Other Key Attributes

       -   The Private Company has assembled an attractive land and 3D
           seismic position on exploration and development prospects
           identified over the past 4 years. These capital intensive
           positioning activities will result in significant efficiencies for
           Alberta Clipper by both shortening project cycle times and
           minimizing the amount of capital that is typically stranded during
           the pre-investment phase of most projects.
       -   Increases Alberta Clipper's exposure to net estimated Montney
           resource gas-in-place by 60% from 57 sections to 92 sections.
    

    ALBERTA CLIPPER SECOND HALF 2008 BUDGET
    ----------------------------------------

    The Board of Directors of Alberta Clipper Energy Inc. has approved a
$55 million capital budget for the second half of 2008, including the Private
Company acquisition, bringing the total for the year to $81 million. The
program represents a 112% increase over first half capital spending that is
estimated at $26 million.
    The second half budget projects drilling 19 wells (13 net) and
undertaking 15 re-completions in the Company's core operating areas.
Approximately $20 million will be spent in Western Alberta ("WAB") and
$10 million in Northeast British Columbia ("NEBC"). Over 90% of the capital
program will be invested in drilling and associated development activities
with 24% of the budget being allocated to light oil targets and 76% to natural
gas targets. Of the 19 wells to be drilled, 6 are exploratory and 13 are of a
development nature.
    The Company is forecasting production to average 3,600 - 3,900 boe/d
during the second half of 2008 with the majority of the projected production
additions from the second half capital program appearing in the fourth quarter
of 2008 and the first quarter of 2009. These additions are expected to take
the Company's production to over 4,000 boe/d by the end of the first quarter
of 2009.
    With the resurgence in natural gas prices and the more attractive royalty
regime, Alberta Clipper is accelerating its planned activity on its existing
land base in NEBC. As part of this program, Alberta Clipper will expand its
development program on its Trutch gas property. This development initiative
will include testing previously identified, but as yet unevaluated, gas
charged intervals that have the potential to dramatically increase the
resource potential of the property. In addition, the Company is licensing its
first horizontal well into the Halfway formation where it intends to complete
the well using multi-stage fracturing techniques. The Company is also in the
process of licensing 5 locations for multi-zone vertical completions using
single and multi stage fracturing techniques.
    Elsewhere in NEBC, Alberta Clipper will be deepening an existing well
bore on one of its 100% owned land blocks to test 2 additional zones - 1 with
significant resource potential and the other with considerable exploration
potential. Two existing, standing gas zones will also be completed in this
well bore in preparation for tie-in this coming winter. The Company will also
be completing two further well bores for gas on existing acreage. The Company
holds 56,100 net acres of land in NEBC operating 96% of these lands.
    In the Sylvan Lake area of WAB, Alberta Clipper will continue to pursue
its portfolio of opportunities which range from repeatable Leduc and Pekisko
exploration and development projects to potentially scalable Cretaceous
development activities. A Leduc development well which is currently drilling
is expected to reach total depth late in the second quarter. Additionally, the
Company will be testing a larger Leduc pinnacle reef anomaly early in the
fourth quarter which exhibits potential for multiple follow-up development
locations.
    Alberta Clipper will continue to be active in its emerging areas within
WAB. The Company plans to continue the development of the discovery that was
announced in the first quarter of 2008 with the drilling of 2 additional
delineation locations as defined by 3-D seismic data. These locations are
expected to spud during the fourth quarter of 2008.
    Specific to the second half 2008 activities on the recently acquired
Private Company lands, Alberta Clipper plans to drill 3 development wells in
the Bigstone area and 1 well at Economy Creek - both within the Company's west
central Alberta core area. At Bigstone, all wells possess multi-zone potential
and will target the Gething, Cadomin and Montney formations. The Montney
formation is productive on and directly adjacent to the Bigstone land block
but has yet to be tested for the emerging tight gas play on the majority of
the acquired lands. At Economy Creek, drilling will target the Montney
formation with the ability to earn an interest in an additional 9.5 gross
sections of lands prospective for the Montney gas resource play.
    The second half of 2008 will be Alberta Clipper's most active period
since inception and in addition to the continued development of the Company's
existing asset base, will see the evaluation of several projects that have the
potential to facilitate step changes in the reserve and resource potential of
the Company.

    Alberta Clipper Energy Inc. is a publicly traded Canadian energy company
involved in the exploration, development, and production of natural gas and
crude oil in western Canada.

    This press release contains forward-looking statements. More
particularly, this press release contains statements concerning Alberta
Clipper's projected annual average and exit rate of production of oil and
natural gas for 2008 and 2009 and capital expenditures. The forward-looking
statements are based on certain key expectations and assumptions made by
Alberta Clipper, including expectations and assumptions concerning prevailing
commodity prices and exchange rates, availability and cost of labor and
services, the timing of receipt of regulatory approvals, the performance of
existing wells, the success obtained in drilling new wells, the performance of
new wells and the sufficiency of budgeted capital expenditures in carrying out
Alberta Clipper's planned activities.

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    Although Alberta Clipper believes that the expectations and assumptions
on which the forward-looking statements are based are reasonable, undue
reliance should not be placed on the forward-looking statements because
Alberta Clipper can give no assurance that they will prove to be correct.
Since forward-looking statements address future events and conditions, by
their very nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated due to a
number of factors and risks. These include, but are not limited to, the risks
associated with the oil and gas industry in general (e.g., operational risks
in development, exploration and production; delays or changes in plans with
respect to exploration or development projects or capital expenditures; the
uncertainty of reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses, and health, safety and
environmental risks), commodity price and exchange rate fluctuations and
uncertainties resulting from potential delays or changes in plans with respect
to exploration or development projects or capital expenditures. These risks
are set out in more detail in Alberta Clipper's annual information form for
the year ended December 31, 2007, which can be accessed at www.sedar.com.
    The forward-looking statements contained in this press release are made
as of the date hereof and Alberta Clipper undertakes no obligation to update
publicly or revise any forward-looking statements or information, whether as a
result of new information, future events or otherwise, unless so required by
applicable securities laws.
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    This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
securities offered have not and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold in the United States except in
certain transactions exempt from the registration requirements of the U.S.
Securities Act and applicable states securities laws.
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    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. Not for
    distribution to U.S. newswire services or for dissemination in the
    United States. Any failure to comply with this restriction may constitute
    a violation of U.S. securities law.

    %SEDAR: 00022458E




For further information:

For further information: Kel Johnston, President & C.E.O, Alberta
Clipper Energy Inc., Telephone: (403) 440-3474, Facsimile: (403) 440-3475,
Website: www.albertaclipperenergy.com

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ALBERTA CLIPPER ENERGY INC.

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