Alberta Clipper Energy Inc. (ACN - TSX) Announces Closing of Strategic Private Company Acquisition



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    CALGARY, July 29 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper"
or the "Company") advises that it has successfully closed the previously
announced Private Company ("Private Co") acquisition for total consideration
of approximately $34.3 million (including $9.0 million of positive working
capital surplus), made up of 6,111,737 Alberta Clipper common shares and
$14.9 million in cash.
    The Private Co's 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 closing of the
Arrangement, Alberta Clipper has acquired 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 Private Co 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. During the Arrangement period, the Private Co
participated in drilling a vertical well at Economy Creek which encountered
216 feet of log pay in the Montney Formation and was cased for multi-zone
potential. The Montney zone is expected to be completed during the month of
August. With a successful test, Alberta Clipper has in excess of 11,200 acres
of Company and farm-in option lands that are prospective for Montney
development within the vicinity of the well.

    
    The highlights associated with the Acquisition are set forth below:

    1. Purchase Price:             C$ 34.3 million

                       Less:       C$ 9.0 million working capital surplus

                                   C$ 5.1 million undeveloped land value

    Reserve Acquisition Price      C$ 20.2 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 Private Co'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
    -   7 near term (H2 - 2008) drilling locations (5.5 net) representing
        greater than 700 boe/d and greater than 1000 boe/d, respectively, of
        risked production additions by year-end 2008 and the end of the first
        quarter 2009.
    -   Multiple future development drilling and re-completion opportunities
    -   Extensive Montney drilling inventory including 4 vertical and
        2 horizontal wells that are planned prior to breakup 2009.

    7.  Other Key Attributes

    -   Private Co 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 expects to spend approximately $55 million, including the
acquisition, and average between 3,600 and 3,900 boe/d during the second half
of 2008.

    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 rate of production of oil and natural gas
for 2008. 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.

    Boe Presentation - Barrels of oil equivalent ("Boe") may be misleading,
particularly if used in isolation. A Boe conversion rate of 6 Mcf:1 Bbl is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not represent a value equivalency at the wellhead. All Boe
conversions in the report are derived by converting gas to oil at the ratio of
six thousand cubic feet of gas to one barrel of oil.

    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.

    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.

    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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