ALTACANADA RELEASES SECOND QUARTER RESULTS

TSX-V SYMBOL: ANG

CALGARY, Aug. 30 /CNW/ - AltaCanada Energy Corp. (the "Corporation") has provided the financial results for the Second Quarter ending June 30, 2010. Attached is a summary page of key financial, production and drilling metrics. Documents filed include:

    
    1)  Consolidated financial statements
    2)  Management Discussion and Analysis for quarter ending June 30, 2010.
    

AltaCanada has taken several steps to return the Corporation to financial health in the face of continuing low natural gas prices and a high level of indebtedness relative to current production and reserves. Our strategy has been to reduce debt while providing some capital to enable us to increase existing production while pursuing attractive Bakken and Jurassic oil targets on our Corporations existing lands. We successfully completed a Rights Issue during Q2 2010 with strong support from several of our shareholders. The Corporation issued 91.5 million shares for gross proceeds of $6.4 million including, $3.5 million is cash and $2.85 million through conversion of most of the outstanding convertible debentures. The Corporation now has 168,500,000 outstanding shares. This Rights Issue was a significant step towards regaining our financial health. From the cash portion we repaid $1.25 million of bank debt which together with $2.75 million repaid to the bank on December 31, 2009, fully repaid one debt facility.

An extension until October 29, 2010 to our forbearance agreement with the bank was executed in August, 2010 and that provides sufficient capital to start a reinvestment program in Montana. Our bank indebtedness in currently $8.25 million and we hope to take further steps to reduce that indebtedness as this facility is maturing on October 29, 2010.

In September we will participate with a third party in drilling two key oil prospects on our 450,000 acre Blaine Co Montana block. Under a rolling farmout agreement, we pay 20% of costs and retain a 50% interest. The first well will be a 4000' Jurassic oil test to evaluate the Lower Shaunavon equivalents in Montana. This well is being drilled based on analysis of a 3-D survey shot by the company. The second well will be a 5000' Devonian test to evaluate the Bakken oil potential. Should these wells be successful we anticipate that additional wells will be drilled under the same farmin arrangement.

As part of our strategy of increasing gas production and being able to manage with resources generated from that production we restarted several shut-in gas wells in late June and plan to rework several existing gas wells during August, both on and off the Fort Belknap Reservation and to frac 5 wells where uphole gas pay was identified but never completed. There remains considerable potential in AltaCanada's natural gas assets. We have chosen to conserve our gas reserves during a period of low commodity prices and increasing production at this time will provide some support for our oil directed exploration activities. Approximately 60% of our gas production is hedged at $5.42/gj until March 2011.

Significant financial challenges remain for AltaCanada as we explore opportunities for maximizing shareholder value by way of success in the drilling program, commencing in September, through the sale of assets, through the sale of the Corporation or by attaining additional equity. We are however highly encouraged with the quality of oil exploration projects and their potential to materially increase the value of the Corporation.

A complete report is available on SEDAR or on our website www.altacanada.com or from the Corporation.

The Corporation is engaged in the acquisition, exploitation and production of crude oil and natural gas reserves in Western Canada and Montana. For more information on the Corporation, visit www.altacanada.com.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTRUE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

    
                                 HIGHLIGHTS

                                      Three Months            Six Months
    Period Ended June 30
    (unaudited)                     2010        2009        2010        2009
    -------------------------------------------------------------------------

    FINANCIAL

    Total Revenue ($)            537,699     904,211   1,886,497   2,275,334
    Cash Flow (Deficit)
     from Operations ($)        (482,112)   (275,646)   (928,549)   (721,316)
    Per Common Share ($) -
     Basic/Diluted                 (0.01)       0.00       (0.01)      (0.01)
    Net Loss and
     Comprehensive Loss ($)   (1,289,709) (1,053,067) (1,568,777) (1,948,229)
    Per Common Share ($) -
     Basic/Diluted                 (0.02)      (0.01)      (0.02)      (0.03)
    Capital Expenditures ($)     111,732     438,708     128,681   1,884,067
    Net Debt at June 30 ($)                           13,281,637  15,792,731
    Shareholders' Equity at
     June 30 ($)                                      13,374,162  22,843,161
    Total Assets at
     June 30 ($)                                      29,395,632  41,388,412
    Common Shares -
     (weighted average for
     the period)
      Basic                   78,189,547  74,381,538  76,600,970  74,381,538
      Diluted                 78,189,547  74,381,538  76,600,970  74,381,538
    Common Shares -
     (outstanding June 30)                           167,067,735  74,381,538
    -------------------------------------------------------------------------

    OPERATIONS

    Average Daily Sales:
      Natural Gas (Mcf/d)          1,587       2,004       1,508       2,043
      Oil and NGL (Bbls/d)             6           6           7           5
      Total (BOE/d)                  270         340         258         346
      % Gas/Oil Ratio               99/1        99/1        99/1        99/1
    Average Prices:
      Natural Gas ($/Mcf)           3.76        3.41        4.35        4.23
      Oil and NGL ($/Bbl)          50.76       38.24       57.83       31.64
      Total ($/BOE)                23.14       20.75       26.96       25.46
    -------------------------------------------------------------------------

    WELLS DRILLED

      Gross                            -           -           -           5
      Net                              -           -           -         2.7
    Gross Success Rate (%)                                               100
    -------------------------------------------------------------------------
    

SOURCE ALTACANADA ENERGY CORP.

For further information: For further information: Donald Foulkes, President & CEO, Telephone: (403) 265 9091 (ext 248), Fax: (403) 265 9021, Email: info@altacanada.com; Brian Page, VP Finance & CFO, (403) 265 9091 (ext 233), (403) 265 9021, Info@altacanada.com

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ALTACANADA ENERGY CORP.

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