AltaCanada Energy Corp. Announces Q3 Results



    TSX-V SYMBOL: ANG

    CALGARY, Nov. 28 /CNW/ - AltaCanada Energy Corp. is pleased to present
financial highlights from the third quarter of 2007. Complete details and the
full third quarter report are available on our website (www.altacanada.com),
on SEDAR at www.sedar.com, or from the Corporation.
    The Corporation has directed nearly all of our activities in 2007 to the
Fort Belknap acreage block (190,000 gross acres) adjacent to the Corporation's
core Blaine County, Montana, land holding. This has included 57 miles of 2-D
seismic, participation in an April 27th land sale (150,000 gross acres) and
two gas wells (0.5 net). Both wells drilled in the third quarter were cased
and flow tested from a number of intervals but detail results are kept
confidential as we continue to acquire mineral rights in the area. We are
encouraged by results that show the presence of gas on trend with our existing
infrastructure. Four (1.0 net) additional wells are to be drilled in the
fourth quarter for both the shallowest Eagle horizon and one deeper test.
    The emphasis on drilling and delineating significant exploration
opportunities in the new exploration area has meant less available cash for
development drilling on our existing producing block. We have taken advantage
of lower exploration and land costs to materially extend the Corporation's
land position and exploration prospects in a low commodity price environment.
However, as a result, natural declines have not been offset and our sales
volumes averaged 659 BOE/d (4 MMcf/d) down 20% from the third quarter of 2006.
Facility interruptions and no new wells have contributed to this drop.
    Third quarter, 2007 cash flow from operations was $0.5 million ($0.01 per
share) compared to nil ($0.00 per share) in 2006. The third quarter, 2007 loss
of $0.6 million ($0.01 per share) compared to a loss of $1.0 million ($0.02
per share) in 2006. Revenue is lower due to both volume declines and price,
offset by lower depletion and current tax provision. The strengthening
Canadian dollar makes it less expensive to invest in Montana but has had a
negative impact on the Canadian dollar AECO gas index which is tracking well
below the US$ Nymex index.
    One development gas well (0.99 net) in Cherry Patch, Montana, was spudded
in November and is currently being completed.

    Outlook

    We plan to do a small additional financing to drill four more wells at
Fort Belknap, three Eagle tests and one deeper gas target. The funds would
also allow us to opportunistically drill in Canada to mitigate current taxes
in our Alberta Selecta subsidiary. We have evaluated a number of Canadian
exploration plays and will participate only when we are satisfied that we have
suitable prospects.
    Even prior to the recent Alberta royalty announcement weak natural gas
prices and high debt levels have negatively impacted many Canadian junior oil
and gas companies. The Alberta government's proposed new royalty structure
only adds to the negative impact on the Alberta segment of the industry. While
these royalty changes are not effective until January 2009, many companies are
re-deploying capital outside Alberta. Thankfully, the impact of the Alberta
royalty changes for AltaCanada is marginal since 80% of our reserves, future
development drilling and our Fort Belknap exploration area are in Montana
where royalties compare very favourably to the newly announced Alberta royalty
scheme. At the lower production rates an Alberta royalty reduction is
possible, such as our production at Viking-Kinsella, Alberta. For AltaCanada
these negative industry factors are an opportunity. Not only do we see
progressively more attractive Canadian exploration prospects to participate
in, but we also are evaluating corporate opportunities. There is a clear
opportunity for acquisitions and we are working hard to ensure AltaCanada
participates in the trend of consolidating junior oil and gas companies.

    THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
    BOEs MAY BE MISLEADING, PARTICULARLY IF USED IN ISOLATION. A BOE
    CONVERSION RATIO OF 6 MCF : 1 BBL IS BASED UPON AN ENERGY EQUIVALENCY
    CONVERSION METHOD PRIMARILY APPLICABLE AT THE BURNER TIP AND DOES NOT
    REPRESENT A VALUE EQUIVALENCY AT THE WELLHEAD.

    The corporate information contained in this news release may contain
forward-looking forecast information. The reader is cautioned that assumptions
used in the preparation of such information, although considered reasonably
accurate by AltaCanada Energy Corp. at the time of preparation, may prove to
be incorrect. The actual results achieved during the forecast period will vary
from the information provided herein and the variations may be material.
Consequently there is no representation by AltaCanada Energy Corp. that actual
results achieved during the forecast period will be the same in whole or in
part as those forecast.


    
    HIGHLIGHTS

                                    Three Months              Nine Months
    Period ended
    September 30                    2007        2006        2007        2006
    -------------------------------------------------------------------------
    FINANCIAL
    Petroleum and Natural
     Gas Revenue(*)($)         1,959,885   2,698,060   8,419,499  10,367,626
    Cash Flow from
     Operations($)               506,700     (59,369)  2,418,696   3,540,423
      Per Common Share
       ($ - Basic/Diluted)          0.01       (0.00)       0.04        0.06
    Net Earnings (Loss)($)      (635,759) (1,017,038) (1,365,230)   (921,606)
      Per Common Share
       ($) - Basic/Diluted)        (0.01)      (0.02)      (0.02)      (0.02)
    Capital Expenditures($)      625,047   1,715,630   3,012,190   7,897,583
    Debt and working
     capital($)                                       10,106,321   8,991,312
    Shareholders' Equity($)                           24,047,928  25,042,379
    Total Assets($)                                   39,897,246  42,825,523
    Common Shares - (weighted
     average for the quarter)
      Basic                                           60,608,159  60,133,065
      Diluted                                         60,892,560  61,002,102
    Common Shares -
     (outstanding - at
     September 30)                                    62,011,538  60,230,745

    OPERATIONS
    Average Daily Oil
     and Gas Sales
      Natural Gas (Mcf/d)          3,940       4,777       4,582       5,438
      Oil and NGLs (Bbls/d)            3          25           5          67
      Total (BOE/d)                  659         821         769         973
      % Gas/Oil Ratio               99/1        97/3        99/1        93/7
    Average Prices:
      Natural Gas ($/Mcf)(*)        5.36        5.76        6.69        6.27
      Oil and NGLs ($/Bbls)        68.38       60.61       36.56       46.19
      Total ($/BOE)                32.32       35.32       40.13       38.23
    WELLS DRILLED
      Gross                          2.0           4          10          22
      Net                            0.5         3.5         4.6        20.2

    (*) Including royalty income and excluding Gain (Loss) on Financial
    Instruments
    





For further information:

For further information: Don Foulkes, President, Telephone: (403)
265-9091 (ext 248), Fax: (403) 265-9021, Email: info@altacanada.com

Organization Profile

ALTACANADA ENERGY CORP.

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