EMM announces Results for First quarter 2008



    Production up 21%
    Cash flow up 41% Net Income up over 35 times

    TSX VENTURE SYMBOL: M

    CALGARY, June 2 /CNW/ - EMM Energy Inc. "EMM" (TSX VENTURE:M) is pleased
to announce SEDAR Filing of the first quarter results for 2008, Financial
Statements, Management Discussion and Analysis at March 31st, 2008.

    Highlights

    In the first quarter of 2008 average sales volume increased to 223 boe/d,
compared to 184.3 boe/d produced in the same period of 2007. The 21 percent
increase in production is primarily a result of increased production at Lomond
after the installation of compression to match the increased line pressures in
the gathering system. In addition the company resumed operations on some of
the Marwayne heavy oil wells where returns have improved with the increase in
prices for heavy oil in the first quarter of 2008.
    Cash flow from operations in the first quarter of 2008 was up 41 percent
to $547,512 from the previous year's cash flow of $387,708. The increased cash
flow was the result of higher prices and lower royalties resulting in stronger
net backs in Q1 2008. Cash flow from operations was 9 cents per share.
    Net income increased by over 35 fold to $285,818 ($0.05/share) in the
first quarter of 2008 from $7,798 ($0.00/share) in the same period of 2007.

    OUTLOOK

    The Corporation's forecast for the remainder of 2008 includes a capital
spending program of $1,250 thousand to continue expansion in existing core
areas. EMM is planning additional drilling on its Lomond property and
additional development of the Marwayne heavy oil property.
    The company expects a significant increase in cash flow from the Ricinus
well 102/11-17-35-8W5 after pay out expected in Q3 2008 at which time EMM's
3.5 % GORR will convert to a 20% working interest.
    EMM initiated a normal course issuer bid effective February 1st, 2008.
The normal course issuer bid provides additional liquidity for our
shareholders and reduces the fluctuations in market prices for EMM shares. As
of May 30th EMM has purchased 104,000 shares for cancellation under the normal
course issuer bid. EMM will continue to purchase shares through the normal
course issuer bid whenever shares are available at significant discounts to
the estimated net asset value of the company shares.
    EMM is actively persuing acquisitions and development prospects in its
core areas. EMM is also continuing its efforts to reduce the number of small
working interest properties and increase its working interest in future
projects.
    The strong financial performance EMM demonstrated in the first quarter of
2008 is expected to continue throughout the remainder of 2008. EMM anticipates
oil and gas prices will continue to show strength and production will continue
to improve with our planned capital spending program.

    
    -------------------------------------------------------------------------
                     OPERATIONAL AND FINANCIAL HIGHLIGHTS
    -------------------------------------------------------------------------
                                            Three months ended March 31
                                        -------------------------------------
    ($ cdn unless otherwise noted)              2008        2007      Change
    -------------------------------------------------------------------------
    FINANCIAL
    Gross revenue                          1,278,913     853,846       49.8%
    Cash flow from operations                547,512     387,708       41.2%
    Per share (basic)                            .09         .06       50.0%
    Per share (diluted)                          .09         .06       50.0%
    Net income (loss)                        285,818       7,798    3,565.3%
    Per share (basic)                            .05         .00         n/a
    Per share (diluted)                          .05         .00         n/a
    Capital expenditures                      14,860     384,866      (96.1%)
    Bank debt                              1,450,000   1,600,000       (9.4%)
    -------------------------------------------------------------------------
    OPERATIONS
    Production sales
    Oil (bbls/d)                                65.9        61.0        8.0%
    Natural gas (mcf/d)                        882.8       655.4       34.7%
    NGL (bbls/d)                                 9.9        13.9      (28.8%)
    Total (boe/d @ 6 mcf: 1 bbl)            223.0       184.3       21.0%
    Average pricing
    Natural gas ($/mcf)                         8.43        7.85        7.4%
    Oil ($/bbl)                                91.10       61.68       47.7%
    NGL ($/bbl)                                61.27       41.92       46.2%
    Combined ($/boe)                           63.04       51.47       22.5%
    Expenses
    Production Expense &
     transportation ($/boe)                    22.83       14.82       77.5%
    Royalty expense ($/boe)                     7.45        9.69      (16.9%)
    Net Back Combined ($/boe)                  32.76       26.96       12.5%
    -------------------------------------------------------------------------
    

    BOE Presentation
    ----------------
    The term "barrels of oil equivalent" (boe) may be misleading,
particularly if used in isolation. A boe conversion of six thousand cubic feet
of natural gas to one barrel of oil (6:1) is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead. Readers should be aware that
historical results are not necessarily indicative of future performance.
    Additional information and detailed financial statements are available on
SEDAR at www.sedar.com.

    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.

    FORWARD LOOKING STATEMENTS: Certain information regarding EMM in this
news release including management's assessment of future plans and operations,
timing of drilling and tie-in of wells, productive capacity of the new wells
and existing wells, expected production rates, drilling success rates, dates
of commencement of production, may constitute forward looking statements under
applicable securities laws and necessarily involve risks including, without
limitation, risks associated with oil and gas exploration, development,
exploitation, production, marketing and transportation, loss of markets,
volatility of commodity prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, inability to
retain drilling rigs and other services, unexpected decline rates in wells,
wells not performing as expected, delays resulting from or inability to obtain
required regulatory approvals and ability to access sufficient capital from
internal and external sources. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements. Readers
are cautioned that the foregoing list of factors is not exhaustive. Additional
information on these and other factors that could impact EMM's operations and
financial results are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com). Furthermore, the forward looking statements contained in this
news release are made as at the date of this news release and EMM does not
undertake any obligation to update publicly or to revise any of the included
forward looking statements, whether as a result of new information, future
events or otherwise, except as may be required by applicable securities laws.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of this release.

    %SEDAR: 00014953E




For further information:

For further information: EMM Energy Inc., Brian Boulton, President,
(403) 213-3339

Organization Profile

EMM ENERGY INC.

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