Alberta Clipper Energy Inc. (ACN - TSX) Announces First Quarter Results



    
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    CALGARY, May 12 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper" or
the "Company") is pleased to announce that it has filed its unaudited
financial statements and related management's discussion and analysis for the
three months ended March 31, 2009 on www.albertaclipperenergy.com and
www.sedar.com. Certain selected financial and operational information for the
three months ended March 31, 2009 and March 31, 2008 comparatives are set out
below and should be read in conjunction with Alberta Clipper's unaudited
financial statements and related MD&A.

    
                             CORPORATE HIGHLIGHTS
    -------------------------------------------------------------------------
    Financial                                     Three months  Three months
     ($000's,                                            ended         ended
     except per                                       March 31,     March 31,
     share amounts)                                       2009          2008
    -------------------------------------------------------------------------
    Petroleum and natural gas sales                     10,277        17,489
    Funds generated by operations(1)                     2,976         8,985
      Per share basic                                     0.04          0.16
      Per share diluted                                   0.04          0.16
    Net loss(2)                                        (82,362)         (333)
      Per share basic                                    (1.15)        (0.01)
      Per share diluted                                  (1.15)        (0.01)
    Capital expenditures                                 2,746        11,725
    Acquisitions, net of dispositions                        -         5,904
    Net debt and working capital (deficiency)          (74,088)      (49,515)
    -------------------------------------------------------------------------
    Operating
    -------------------------------------------------------------------------
    Production
      Crude oil and natural gas liquids (Bbls per day)   1,060         1,244
      Natural gas (Mcf per day)                         12,649         9,560
      Barrels of oil equivalent (Boe per day, 6:1)       3,168         2,837
    Average realized price
      Crude oil and natural gas liquids ($ per Bbl)      43.55         88.34
      Natural gas ($ per Mcf)                             5.38          8.61
      Barrels of oil equivalent ($ per Boe, 6:1)         36.04         67.74
    Netback per Boe (6:1) ($)
      Petroleum and natural gas sales                    36.04         67.74
      Hedging                                             0.41         (0.95)
      Royalties                                          (8.22)       (15.32)
      Operating expenses                                (12.26)       (10.18)
      Transportation expenses                            (0.81)        (0.67)
    -------------------------------------------------------------------------
    Operating Netback                                    15.16         40.62
    -------------------------------------------------------------------------
    Undeveloped land holdings (net acres)              208,816       179,940
    -------------------------------------------------------------------------
    Common Shares (000's)
    Shares outstanding, end of period                   71,960        56,473
    Weighted average shares, diluted                    71,960        57,144
    -------------------------------------------------------------------------
    (1) Management uses funds generated by operations to analyze operating
        performance and leverage. Funds generated by operations as presented
        do not have any standardized meaning prescribed by Canadian GAAP and
        therefore it may not be comparable with the calculation of similar
        measures for other entities.
    (2) Includes Property, Plant and Equipment impairment of $107 million.
    

    Operations Overview

    Alberta Clipper Energy Inc. ("Alberta Clipper" or the "Company")
increased the production base of the Company from 2,837 boe/d in the first
quarter of 2008 to 3,168 boe/d in the first quarter of 2009, an increase of
12%. The Company drilled 1 (0.2 net) well in the first quarter of 2009
resulting in 1 (0.2 net) gas well.
    From formation, the goal of Alberta Clipper has been to create
shareholder value through consistent growth in reserves and production per
share. The successful execution of this strategy is dependent on certain key
factors; namely, sufficiently high commodity prices to generate the cash flow
required to fund the capital expenditures necessary to grow reserves and
production, the ability to replace declines in reserves and production through
cost effective acquisitions or capital expenditures and the availability of
debt and equity capital on favorable terms to fund attractive acquisitions or
development and exploration opportunities. The combination of the loss of
access to equity capital associated with an unstable fiscal regime in Alberta
and global economic uncertainty and an unprecedented drop in commodity prices
coupled with a restriction on debt availability have all conspired to limit
Alberta Clipper's ability to sustain and demonstrate consistent grow its asset
value and share price in the near to medium term. As a result, the Board and
Management of Alberta Clipper after careful deliberation made the strategic
decision to merge the Company into a larger entity.
    On March 23, 2009, the Corporation announced that it had entered into an
arrangement agreement with NAL Oil & Gas Trust ("NAL") pursuant to which NAL
will acquire all of the issued and outstanding common shares of the
Corporation (the "NAL Transaction") by way of a Plan of Arrangement under the
Alberta Business Corporations Act (the "Arrangement"). The total consideration
for the transaction is $115 million which will be paid through the issuance of
approximately 5.7 million trust units of NAL representing $37 million at a
deemed price of $6.45 per trust unit and the assumption of an estimated $78
million in net debt of the Corporation at closing. Based on an exchange ratio
of 0.078875 NAL trust units for each Alberta Clipper share, the offer
represents a price of $0.51 per common share.
    The Board of Directors of NAL Energy Inc. ("NAL Energy") has unanimously
approved the Transaction. The Board of Directors of Alberta Clipper has
unanimously approved the Transaction and based, in part, on the fairness
opinion from Alberta Clipper's financial advisor discussed below, determined
that the Transaction is in the best interests of Alberta Clipper and the
holders of its common shares and is fair from a financial point of view to
such holders. Therefore, the Board has resolved to recommend that such holders
vote their shares in favor of the Transaction. The directors, officers and
significant shareholders of Alberta Clipper, collectively holding
approximately 21% of the outstanding common shares of Alberta Clipper, have
entered or agreed to enter into agreements to vote their securities in favor
of the Arrangement. The Arrangement Agreement provides for a non-completion
fee of $3.6 million to be payable by Alberta Clipper to NAL in certain
circumstances.
    Alberta Clipper, on April 17, 2009, obtained an interim order of the
Court of Queen's Bench of Alberta providing for, among other things, the
holding of a meeting of the shareholders of Alberta Clipper to approve the
Arrangement under the Business Corporations Act (Alberta) with NAL.
    Closing of the Transaction is expected to occur on or about June 1, 2009,
subject to the satisfaction of certain conditions including approval of the
Transaction by Alberta Clipper's shareholders and the Court of Queen's Bench
of Alberta. A special meeting to vote on the proposed Arrangement Agreement by
Alberta Clipper shareholders is to be held on or about May 27, 2009. Upon
successful execution of the arrangement agreement, shareholders of Alberta
Clipper will be eligible to receive the NAL distribution for June 2009 that is
expected to be payable on July 15, 2009.
    For further information regarding Alberta Clipper Energy Inc., the reader
is invited to visit the Company's website at www.albertaclipperenergy.com.

    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.
    As referred to above, to view Alberta Clipper's unaudited financial
statements and related MD&A for the three months ended March 31, 2009 please
visit www.albertaclipperenergy.com or www.sedar.com. To the extent investors
do not have access to the internet, copies of the audited financials and
related MD&A can be obtained on request without charge by contacting Investor
Relations at (403) 440-3474 or at 1800, 500 - 4th Avenue SW, Calgary, Alberta,
T2P 2V6.

    FORWARD-LOOKING STATEMENTS

    This press release may contain forward-looking statements including
expectations of future production. More particularly, this press release
contains statements concerning Alberta Clipper's future production estimates,
expansion of oil and gas property interests, exploration and development
drilling, capital expenditures, number and drilling locations to be drilled in
2009 and seismic activity. These statements are based on current expectations
that involve a number of risks and uncertainties, which could cause actual
results to differ from those anticipated. These risks include, but are not
limited to: the risks associated with the oil and gas industry (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, price and exchange
rate fluctuation and uncertainties resulting from potential delays or changes
in plans with respect to exploration or development projects or capital
expenditures. Additional information on these and other factors that could
affect Alberta Clipper's operations or financial results are included in
Alberta Clipper Energy's reports on file with Canadian securities regulatory
authorities.
    The forward-looking statements or information contained in this news
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.

    Oil and Gas Advisory

    This press release contains disclosure expressed as "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the well head.

    
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.
    

    %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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