First Calgary Petroleums Ltd. Announces 2007 Third Quarter Results



    CALGARY, Nov. 13 /CNW/ - First Calgary Petroleums Ltd. (First Calgary,
FCP or the Company) announces its results for the nine months ended
September 30, 2007.

    
    HIGHLIGHTS

    Drilling and Testing Progress on Block 405b in Algeria

    -   Continued success in appraisal drilling in the Central Area Field
        Complex (CAFC), including the TAGI oil, and gas and condensate pools

    -   Exploration and appraisal drilling in the CAFC to be completed in
        Q4 2007, with submission of the CAFC final discovery
        report/development plan to Sonatrach by Q2 2008 for approval

    -   Total of 31 wells will have been drilled by year end

    MLE Commercialisation Progress

    -   MLE development approval in place

    -   Gas marketing terms signed for production from Block 405b

    -   First production targeted for H1, 2010

    -   Front end engineering and design (FEED) to be completed in
        December 2007 prior to tendering the engineering, procurement and
        construction (EPC) contract in early 2008

    Financing Progress

    -   April 2007 equity financing raised C$145 million

    -   Substantial acceleration of project debt finance activities underway,
        on track with project schedule. Oil and gas project debt market
        remains robust despite credit markets' volatility

    -   Continuing examination of alternative joint venture arrangement with
        potential partners
    

    Richard G. Anderson, President and CEO commented:
    "The Company has gone full cycle since signing the Production Sharing
Contract in 2001, successfully exploring and appraising the entire Block,
designing and implementing the development, and now progressing the
financing."
    "The next major steps for the Company include completion of the FEED, and
implementation of the EPC and financing processes for MLE commercialisation
and the submission and approval of the CAFC development plan."

    First Calgary Petroleums Ltd. is an oil and gas exploration company
actively engaged in international exploration and development activities in
Algeria. The Company's common shares trade on the Toronto Stock Exchange in
Canada (FCP) and on the AIM market of the London Stock Exchange in the UK
(FPL).


    REPORT TO SHAREHOLDERS

    We are pleased to update our shareholders on the Company's activities for
the nine months ended September 30, 2007.
    All the building blocks are being put in place to move FCP to a major Oil
and Gas Producer in a short time.
    The exploration and appraisal programme on Block 405b Ledjmet in Algeria
will be completed in Q4. A total of 31 wells will have been drilled of which
25 have tested in excess of 320 thousand barrels of oil equivalent per day on
a cumulative normalised basis, made up of 1.1 billion cubic per day of gas and
135 thousand barrels of liquids per day. This, as well as initially covering
the entire block with 3D seismic, has been done over the last six years.
    The initial development approval is in place for the MLE field and a gas
marketing agreement covering the entire block has been entered into on very
favorable commercial terms.
    The Company is now at the 'Build It' stage. The front end engineering and
design (FEED) was awarded in May and is expected to be completed in December.
The engineering procurement and construction (EPC) contract tenders are being
readied and will go out immediately upon completion of the FEED.
    On the financing side, the Company is focusing on the best financial
solution possible to maximize shareholder value. We continue to work with our
advisors on project finance and potential joint ventures. The release of the
FEED study in coming weeks will enable the MLE capital budget to be further
refined. The Company's financial plan forecasts that the majority of FCP's
share of project development costs will likely be funded via secured, long
term project financing.
    The Company now has the team in place to carry out this development
effectively, with our partner Sonatrach, and all are to be congratulated for
their perseverance and contribution throughout this process. As well, the
Company has proven its expertise as an explorer and new opportunities are
being aggressively pursued. The Company is very intent again on moving into a
growth mode.

    On behalf of the Board,
    Richard G. Anderson,
    President and CEO



    First Calgary Petroleums Ltd.
    Management's Discussion and Analysis
    For the period ended September 30, 2007
    (in thousands of U.S. dollars unless otherwise indicated)
    -------------------------------------------------------------------------

    MANAGEMENT'S DISCUSSION AND ANALYSIS

    Management's discussion and analysis (MD&A) is a review of operations,
current financial position and outlook for First Calgary Petroleums Ltd.
(First Calgary, FCP or the Company). It should be read in conjunction with the
unaudited interim financial statements for the nine month periods ended
September 30, 2007 and 2006 and the audited financial statements and MD&A for
the year ended December 31, 2006. In this discussion and analysis $ refers to
thousands of U.S. dollars and C$ refers to the Canadian dollar, unless
otherwise indicated.

    OPERATIONAL REVIEW

    Appraisal Operations

    FCP's continued drilling operations within the CAFC resulted in the
drilling of the LES-8 and LES-9 locations with the Saipem rig and MZLN-5 with
the Great Wall Drilling rig. Upon the completion of the drilling operations at
MZLN-5, FCP released the Great Wall Drilling rig to continue operations on
Block 405b with the Saipem rig and the single test spread. FCP has now
completed the appraisal drilling programme within the CAFC, with the drilling
of the MZLN-6 well.
    The appraisal of the TAGI zone continued to be the focus of the drilling
effort throughout Q3 2007. The testing programmes for MZLN-5 and LES-9 were
not completed by the end of Q3, however initial results from the TAGI test on
LES-8 confirmed an extension of the LES-LEC TAGI pool westward from the
original discovery well at LES-3.
    The LES-LEC and MZLN TAGI pools continue to represent the major anchor
development projects for the CAFC. Representing a significant volume of oil
and liquids, the TAGI pools in CAFC are transforming FCP into both an oil and
gas company. FCP is continuing to work closely with its partner, Sonatrach, in
preparing the documentation that will make up the commercialization proposal
or Final Discovery Report for the CAFC which is anticipated to be submitted to
the Algerian authorities by Q2 2008.
    FCP and Sonatrach are continuing to evaluate the drilling results on the
ZER structure and to evaluate a potential development plan for the structure.
    In anticipation of an extensive development drilling programme in the
CAFC and the approved development drilling programme in MLE, FCP engaged
Western-Geophysical to shoot a high resolution seismic programme covering the
MLE field area and the primary pool areas within the CAFC (250 km(2)) and
commenced field operations in August, 2007. The seismic programme was 50%
complete by the end of Q3 and is anticipated to be completing the field
acquisition phase by the middle of November, 2007. The seismic data will be
processed by Western-Geco in Gatwick, UK and will be ready for interpretation
by early Q1 2008.

    Readers are referred to the map which is available on the Company's
website at www.fcpl.ca.

    MLE Commercialisation

    FCP has made good progress on MLE commercialisation since receiving
approval in February 2007 from the Algerian regulatory authority ALNAFT for
the Development Plan for the MLE oil and gas field on Block 405b.
    The Front End Engineering & Design (FEED) contract was awarded to Genesis
(subsidiary of Technip) in May 2007 and is now 80% complete. Included as part
of the Block 405b approved development design is a gas plant and field
gathering system and facilities designed to produce up to 200 million cubic
feet of sales gas per day (MMCF/d) on a gross basis and associated natural gas
liquids and oil. In the third quarter, FCP and Sonatrach agreed to modify the
design of the key product pipelines to accommodate planned increased volumes
from the CAFC as part of an integrated block development strategy.
Infrastructure expansion is being targeted to be able to process in the range
of 300 - 400 MMCF/d sales gas with up to 80 thousand barrels per day (MB/d) of
liquids. Expected volumes to be produced will be finalized with submission of
the development plan for the CAFC.
    In order to achieve first production in early 2010, FCP has established
an aggressive project timeline. An experienced project management team has
been staffed to ensure that the project timeline is achieved. Some of the key
project deliverables for 2007 and early 2008 are completing the FEED work in
December, ordering long-lead items (LLI), and tendering and awarding the
engineering, procurement and construction (EPC) contract. In Q3, FCP and
Sonatrach executed a Joint Operating Agreement which will govern their working
relationship from development onward. Many of FCP's existing field staff will
work under this relationship and substantial hiring/staffing is ongoing by FCP
and Sonatrach to fill other key project roles within the organization.

    
    FINANCIAL RESULTS
                                    Three months ended     Nine months ended
                                          September 30          September 30
                                  --------------------- ---------------------
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    Net income (loss)             $  (1,745) $    (266) $  (5,755) $   4,998

    The net loss has increased in the 3 month period ended and shifted to a
net loss position over the nine month period ended September 30 due to foreign
exchange gains realised in 2006 and increasing G&A costs as detailed below.

                                    Three months ended     Nine months ended
                                          September 30          September 30
                                  --------------------- ---------------------
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    Interest                      $   1,511  $   2,052  $   4,004  $   4,840

    Interest income was lower in 2007 than the comparable 2006 period due to
higher average cash and cash equivalents on hand in 2006.

                                    Three months ended     Nine months ended
                                          September 30          September 30
                                  --------------------- ---------------------
                                       2007       2006       2007       2006
    -------------------------------------------------------------------------
    General and administrative    $   4,259  $   2,666  $  12,875  $   6,495
    Capitalised                      (1,148)      (657)    (3,514)    (1,737)
                                  --------------------- ---------------------
    Expensed                         $3,111  $   2,009  $   9,361  $   4,758
                                  --------------------- ---------------------

    The increase in general and administrative costs in 2007 is primarily the
result of growing employee levels required to manage and operate the Algerian
projects. Capitalised G&A is higher in 2007 due to growth in operational
staffing, resulting in increased capitalised salaries.

                                    Three months ended     Nine months ended
                                          September 30          September 30
    Property, plant and equipment --------------------- ---------------------
     expenditures                      2007       2006       2007       2006
    -------------------------------------------------------------------------

    Drilling, completion and
     testing                      $  28,107  $  30,758  $  98,839  $  88,750
    Geological and geophysical        5,035        902      6,710      2,621
    MLE commercialisation            14,054      5,760     24,676      6,792
    -------------------------------------------------------------------------
                                     47,196     37,420    130,225     98,163
    Block management and
     administration                   4,347      4,060     10,171     19,104
    Corporate                           413        776        971      1,000
    -------------------------------------------------------------------------
    Total property, plant and
     equipment expenditures          51,956     42,256    141,367    118,267

    Less non-cash expenditures
     (stock-based compensation,
     asset retirement provisions)     1,310      1,102      3,578      2,729
    -------------------------------------------------------------------------
    Net cash property, plant and
     equipment expenditures       $  50,646  $  41,154  $ 137,789  $ 115,538
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Capital expenditures are higher in the three and nine month periods ended
September 30, 2007 due to increased costs related to the development of the
MLE field and a seismic programme that covered both the CAFC and the MLE
field. This was partially offset by lower drilling expenditures in the third
quarter of 2007 as FCP reduced the drilling rigs from two to one compared to 3
drilling rigs in 2006.

    Liquidity and Capital Resources

    First Calgary had $72.3 million of working capital on hand as at
September 30, 2007 compared with $82.7 million at the end of 2006. Cash
balances and short-term investments were $105.4 million at the end of the
quarter. The Company has no credit or debt agreements in place.
    Given the nature of an exploration company, FCP's financial resources
fluctuate with the amount and timing of equity financings and its capital
programme. The $10.4 million decrease in the Company's working capital from
December 31, 2006 is primarily the result of the proceeds of an equity issue
in April this year, offset by capital expenditures for commercialisation of
MLE and appraisal drilling.
    In April 2007 FCP raised C$145 million, net of expenses, from the issue
of 30 million common shares at a price of C$5.08 per common share. Together
with existing resources, this financing will provide the Company with working
capital needed to appraise the CAFC and invest in MLE field pre-development
expenditures.
    It is well known that FCP will need to raise a significant amount of
capital to fund the development of the MLE project. Initial engineering and
cost estimation work undertaken by Petrofac projected FCP's share of MLE costs
to be in the area of $1 billion (after taking into account sunk exploration,
appraisal and pre-development costs which will have been incurred before the
signing of the EPC). The release of the FEED Study in coming weeks will enable
the MLE capital budget to be further refined. The Company's financial plan
forecasts that more than 50% of FCP's share of project development costs will
likely be funded via secured, long term project financing. The remaining
requirement could be funded via the issuance of capital market instruments.
    The Company is listed on the Toronto Stock Exchange and the AIM market of
the London Stock Exchange. The diluted numbers of shares outstanding at the
following dates were:

    
                                          November    September     December
                                          12, 2007     30, 2007     31, 2006
    -------------------------------------------------------------------------
    Common shares                      254,619,030  254,619,030  223,686,330
    Employee stock options              12,233,747   12,442,080    9,135,600
    -------------------------------------------------------------------------
    Diluted shares outstanding         266,852,777  267,061,110  232,821,930
    -------------------------------------------------------------------------

    Selected Quarterly Information

    (000's of U.S. dollars except                  2007                 2006
     per share amounts)                  Q3         Q2         Q1         Q4
    -------------------------------------------------------------------------
    Interest income                $  1,511   $  1,502   $    991   $  1,633

    Income (loss)                    (1,745)    (1,613)    (2,397)    (1,506)
    Income (loss) per share           (0.01)     (0.01)     (0.01)     (0.01)

    Total assets                    788,554    775,867    643,642    650,053
    -------------------------------------------------------------------------


    (000's of U.S. dollars except                  2006                 2005
     per share amounts)                  Q3         Q2         Q1         Q4
    -------------------------------------------------------------------------
    Interest income                $  2,052   $  1,902   $    886   $    887

    Income (loss)                      (266)     6,577     (1,313)    (4,181)
    Income (loss) per share            0.00       0.03      (0.01)     (0.02)

    Total assets                    649,354    641,938    491,776    482,776
    -------------------------------------------------------------------------


    Outlook

    First Calgary's primary objective is to continue to commercialise Block
405b, starting with the MLE field, then expanding the development to
incorporate the CAFC. In addition, new exploration acreage is being sought to
utilize the Company's experienced exploration team and expand its exploration
portfolio.

    In the short-term, over the period to early next year, key activities
include:

    -  Complete the FEED work for MLE; FEED is 80% complete;
    -  Order long-lead items necessary for the MLE field development;
    -  Finalize tender documents for the EPC contract for the MLE
       development;
    -  Finish appraisal drilling of the CAFC in Q4 and work with Sonatrach to
       finalize a second stage development plan for the CAFC and submit by
       Q2, 2008 for approval;
    -  Determine and execute the financing for the MLE field development and
       ongoing activities in the CAFC; and
    -  Continue to seek attractive new exploration acreage opportunities.
    

    Changes in accounting policies

    (a) Financial instruments - recognition and measurement

    This new Canadian standard requires all financial instruments within its
scope, including all derivatives, to be recognized on the balance sheet
initially at fair value. Subsequent measurement of all financial assets and
liabilities except those held-for-trading and available for sale are measured
at amortized cost determined using the effective interest rate method. The
effect of adopting the new standard is not material to the financial
statements.

    (b) Other comprehensive income

    The new standards require a statement of comprehensive income, which is
comprised of net earnings (loss) and other comprehensive income (loss). For
the Company, there are no items in comprehensive income (loss) other than net
earnings (loss).
    Under the new accounting standards, cumulative translation adjustments
are included in accumulated other comprehensive income. As a result, the
Company's cumulative translation adjustment at December 31, 2006 and September
30, 2007 of $6.5 million has been reclassified to accumulated other
comprehensive income in shareholders' equity.

    (c) Accounting policies not yet adopted

    Two new Canadian accounting standards have been issued which will require
additional disclosure in the Company's financial statements commencing January
1, 2008, about the Company's financial instruments as well as its capital and
how it is managed.

    Internal Controls Over Financial Reporting

    Internal controls have been designed to provide reasonable assurance
regarding the reliability of the Company's financial reporting and the
preparation of financial statements together with other financial information
for external purposes in accordance with Canadian GAAP. During the quarter
ended September 30, 2007, there have been no changes in the design of the
Company's internal controls over financial reporting that have materially
affected, or are reasonably likely to materially affect, the Company's
internal controls over financial reporting.

    Business Risks and Uncertainties

    The MD&A and Annual Information Form (AIF) for the year ended December
31, 2006 includes an overview of certain business risks and uncertainties
facing the Company. Those risks remain in effect as at September 30, 2007.

    Advisory Regarding Forward-Looking Statements

    Certain information with respect to the Company contained in this report,
including management's assessment of future plans and operations, contains
forward-looking statements. These forward-looking statements are based on
assumptions and are subject to numerous risks and uncertainties, some of which
are beyond FCP's control, including the timing and receipt of joint venture
and government approvals, the impact of general economic conditions, industry
conditions, volatility of commodity prices, currency exchange rate
fluctuations, reserve estimates, environmental risks, competition from other
explorers, stock market volatility and ability to access sufficient capital.
In addition, actual results may vary because FCP principally operates in less
developed legal systems than jurisdictions with more established economies and
relies on continuing existing strategic relationships and forming new ones
with other entities in the oil and gas industry, such as joint venture parties
and farm-in partners. FCP's actual results, performance or achievement could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly, no assurance can be given that
any events anticipated by the forward-looking statements will transpire or
occur.

    Company Information

    Additional information is available on FCP's website at www.fcpl.ca or on
SEDAR's website at www.sedar.com.

    November 12, 2007


    
    FIRST CALGARY PETROLEUMS LTD.
    Consolidated Balance Sheets


    (unaudited)                                         September   December
    (in thousands of U.S. dollars)                       30, 2007   31, 2006
    -------------------------------------------------------------------------

    Assets
      Current assets
        Cash and cash equivalents                       $ 105,385  $ 108,489
        Accounts receivable                                 1,161        738
        Deposits and prepaid expenses                         937        707
    -------------------------------------------------------------------------
                                                          107,483    109,934

      Property, plant and equipment                       681,071    540,119

    -------------------------------------------------------------------------
                                                         $788,554  $ 650,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity
      Current liabilities
        Accounts payable and accrued liabilities        $  35,177  $  27,226

      Asset retirement obligations                          1,010        687

      Future income taxes                                  18,200     18,200

    Shareholders' equity
      Capital stock (note 3)                              763,257    631,933
      Contributed surplus (note 3)                         23,844     19,186
      Accumulated other comprehensive income                6,502      6,502
      Deficit                                             (59,436)   (53,681)
    -------------------------------------------------------------------------
                                                          734,167    603,940
    Operations and commitments (note 2)
    -------------------------------------------------------------------------
                                                        $ 788,554  $ 650,053
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to interim consolidated financial statements.



    FIRST CALGARY PETROLEUMS LTD.
    Consolidated Statements of Operations and Deficit

    (unaudited)                     Three months ended     Nine months ended
    (in thousands of U.S. dollars,        September 30          September 30
     except per share amounts)         2007       2006       2007       2006
    -------------------------------------------------------------------------

    Revenue
      Interest                     $  1,511   $  2,052   $  4,004   $  4,840

    Expenses
      General and administrative      3,111      2,009      9,361      4,758
      Foreign exchange gain            (963)      (105)    (2,071)    (6,965)
      Stock-based compensation
       (note 3)                         971        338      2,045      1,931
      Capital taxes (recovery)          (36)         -        (36)       (33)
      Depreciation and accretion        173         76        460        151
    -------------------------------------------------------------------------
                                      3,256      2,318      9,759       (158)

    Income (loss) for the period     (1,745)      (266)    (5,755)     4,998

    Deficit, beginning of period    (57,691)   (33,709)   (53,681)   (38,973)

    -------------------------------------------------------------------------
    Deficit, end of period          (59,436)   (33,975)   (59,436)   (33,975)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Income (loss) per share
     (note 3)
      Basic and diluted            $  (0.01)  $      -   $  (0.02)  $   0.02
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to interim consolidated financial statements.



    FIRST CALGARY PETROLEUMS LTD.
    Consolidated Statements of Cash Flows

                                    Three months ended     Nine months ended
    (unaudited)                           September 30          September 30
    (in thousands of U.S. dollars)     2007       2006       2007       2006
    -------------------------------------------------------------------------

    Operating activities
      Income (loss) for the period $ (1,745)  $   (266)  $ (5,755)  $  4,998
      Items not involving cash
        Stock-based compensation        971        338      2,045      1,931
        Foreign exchange loss
         (gain)                          96       (233)    (1,452)      (903)
        Depreciation and accretion      173         76        460        151
    -------------------------------------------------------------------------
                                       (505)       (85)    (4,702)     6,177
      Change in non-cash working
       capital                          551      3,634       (692)     5,497
    -------------------------------------------------------------------------
                                         46      3,549     (5,394)    11,674
    -------------------------------------------------------------------------

    Financing activities
      Proceeds from issuance of
       shares                             -          -    135,671    150,941
      Proceeds from exercise of
       options                          234        256      1,515      2,615
      Issue costs                         -        (55)    (6,549)    (7,997)
    -------------------------------------------------------------------------
                                        234        201    130,637    145,559

    Investing activities
    Property, plant and equipment
     expenditures                   (50,646)   (41,154)  (137,789)  (115,538)
    Change in non-cash working
     capital                         12,167      2,727      8,128      5,828
    -------------------------------------------------------------------------
                                    (38,479)   (38,427)  (129,661)  (109,710)

    -------------------------------------------------------------------------
    Change in cash and cash
     equivalents                    (38,199)   (34,677)    (4,418)    47,523

    Exchange rate fluctuations
     on change in cash and cash
     equivalents                       (204)       287      1,314        280

    Cash and cash equivalents,
     beginning of period            143,788    190,075    108,489    107,882

    -------------------------------------------------------------------------
    Cash and cash equivalents,
     end of period                 $105,385   $155,685   $105,385   $155,685
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to interim consolidated financial statements.



    First Calgary Petroleums Ltd.
    Notes to the Consolidated Financial Statements
    Nine months ended September 30, 2007 (unaudited)
    (in thousands of U.S. dollars unless otherwise indicated)
    -------------------------------------------------------------------------

    These interim consolidated financial statements of First Calgary
    Petroleums Ltd. (First Calgary, FCP or the Company) have been prepared by
    management in accordance with accounting principles generally accepted in
    Canada following the same accounting policies as the consolidated
    financial statements for the year ended December 31, 2006, except as
    noted below. The disclosures included below are incremental to those
    included with the annual consolidated financial statements. The interim
    consolidated financial statements should be read in conjunction with the
    consolidated financial statements and the notes thereto for the year
    ended December 31, 2006.

    1.  Changes in accounting policies:

        (a) Financial instruments - recognition and measurement

            This new Canadian standard requires all financial instruments
            within its scope, including all derivatives, to be recognized on
            the balance sheet initially at fair value. Subsequent measurement
            of all financial assets and liabilities except those
            held-for-trading and available for sale are measured at amortized
            cost determined using the effective interest rate method. The
            effect of adopting the new standard was not material to the
            financial statements.

        (b) Other comprehensive income

            The new standards require a statement of comprehensive income,
            which is comprised of net earnings and other comprehensive
            income. For the Company, there are no items in comprehensive
            income other than the loss for the period.

            Under the new accounting standards, cumulative translation
            adjustments are included in accumulated other comprehensive
            income. As a result, the Company's cumulative translation
            adjustment at December 31, 2006 and September 30, 2007 of
            $6.5 million has been reclassified to accumulated other
            comprehensive income in shareholders' equity.

        (c) Accounting policies not yet adopted

            Two new Canadian accounting standards have been issued which will
            require additional disclosure in the Company's financial
            statements commencing January 1, 2008, about the Company's
            financial instruments as well as its capital and how it is
            managed.

    2.  Operations and commitments:

        First Calgary currently has the rights to appraise and develop
        Ledjmet Block 405b (Block 405b) in Algeria. The Company's rights and
        obligations on Block 405b are set out in a Production Sharing
        Contract (PSC) with Sonatrach, the national oil company of Algeria.
        The nature of current operations and the terms or commitments under
        the PSC are summarised as follows.

        The five year exploration period of the PSC ended on
        December 29, 2006. All exploration work commitments under the PSC
        were completed.

        FCP has retained two main acreage parcels for further appraisal and
        potential development, the MLE field and the Central Area Field
        Complex (CAFC).

        In February 2007, First Calgary received approval from the Algerian
        regulatory authority ALNAFT of the Development Plan for the MLE oil
        and gas field. The total gross cost of the MLE development is
        currently estimated at $1.0 - $1.3 billion, and will be mainly
        incurred in 2008 and 2009. The costs will be funded 75% by FCP and
        25% by Sonatrach. The total project cost estimate will be refined
        during 2007 as engineering and design plans are completed. In
        addition to the development costs, FCP has obligations to Sonatrach
        for the MLE access fee and annual training bonuses. The MLE access
        fee is compensation for the right to develop the MLE reserves
        discovered by Sonatrach with the MLE-1 well, and will result in FCP
        paying for the first $45 million of Sonatrach's development costs.
        The annual training bonus is $150 thousand, indexed for inflation,
        for the duration of the contract.

        Sonatrach agreed to extend the Block 405b exploration period for 24
        months commencing December 30, 2006 in order to complete the
        appraisal of the CAFC and to submit commerciality reports and apply
        for exploitation permits thereon. Following the appraisal of the
        CAFC, the remaining lands not subject to an exploitation permit will
        be returned to the government.

        First Calgary has committed its revenue interest in the natural gas
        production on Block 405b to Sonatrach through a long term take or pay
        gas marketing arrangement. Pursuant to the arrangement, Sonatrach
        will market the total natural gas production from Block 405b using a
        price formula linked to the price of European oil products. During
        the exploitation period, the PSC allocates hydrocarbon production
        between FCP, Sonatrach and the Algerian State in accordance with a
        sliding scale formula based on such factors as production levels,
        product prices, project investments and rates of inflation. Pursuant
        to the formula, the Company's annual share of production may range
        from 27.72% to 8.16%. All Algerian state royalties and income taxes
        are paid by Sonatrach from its share of hydrocarbon production,
        except the new Windfall Profits Tax. In 2006 the Algerian government
        announced a new Windfall Profits Tax. Having studied the detailed
        legislation, FCP has been advised that the Windfall Profits Tax will
        apply to its share of liquids production, but not gas revenues. FCP's
        analysis indicates that an expected tax rate of 5% will apply on
        liquids production only, which is the lowest applicable rate, as
        FCP's net entitlement share of liquids production under the PSC will
        be under the 20,000 barrels per day threshold. Exploitation periods
        for each commercial oil and natural gas discovery are 25 and
        30 years, respectively.

        The development of the Block 405b reserves through to commercial
        production will require additional funding in the form of debt,
        equity and quasi equity, joint ventures or some combination thereof.

    3.  Capital stock:

        (a) Issued share capital:

                                                      Number of
                                                         Shares       Amount
        ---------------------------------------------------------------------
        Common shares:
          Balance, December 31, 2006                223,686,330   $  631,933
          Issued on public offering (i)              30,000,000      135,671
          Issued on exercise of employee stock
           options                                      932,700        1,515
          Transfer from contributed surplus                   -          687
          Issue costs                                         -       (6,549)
        ---------------------------------------------------------------------
          Balance, September 30, 2007               254,619,030   $  763,257
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

           (i) On April 24, 2007 the Company issued 30,000,000 common shares
               for gross proceeds of $135.7 million at a price of C$5.08 per
               common share. The issue costs were $6.5 million.

        (b) Employee stock options:

            The Company has up to 10% of its issued and outstanding common
            shares available for issuance pursuant to its Stock Option Plan.
            Stock options granted under the plan have a term of five years
            and vesting terms are determined at the discretion of the Board,
            ranging between two and three years. The exercise price of each
            option is equal to the closing market price of the shares on the
            date preceding the date of the grant. The following table
            summarises the changes in stock options outstanding during the
            nine months ended September 30, 2007:


                                                Number of       Weighted Avg.
                                                  Options     Exercise Price
        ---------------------------------------------------------------------
        Outstanding, December 31, 2006          9,135,600            C$ 5.98
          Granted                               5,124,180               5.20
          Exercised                              (932,700)              1.78
          Forfeited                              (885,000)              8.18
        ---------------------------------------------------------------------
        Outstanding, September 30, 2007        12,442,080            C$ 5.81
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

           The following table summarises information about the options
           outstanding and exercisable at September 30, 2007:

                             Options Outstanding         Options Exercisable
                             -------------------         -------------------
                                   Weighted
                                    Average
                                  Remaining   Weighted              Weighted
                                Contractual    Average               Average
              Range of                 Life   Exercise              Exercise
        Exercise price   Options    (years)      Price    Options      Price
        ---------------------------------------------------------------------
        C$  2.36 - 2.60    445,000  0.5 years     2.59    445,000       2.59
        C$  4.72 - 4.72  2,117,500  1.1 years     4.72  2,117,500       4.72
        C$  5.07 - 6.39  7,961,580  4.0 years     5.58  2,114,733       6.24
        C$  7.22 - 8.59    944,000  2.9 years     7.59    524,003       7.69
        C$  8.65 -10.50    800,000  3.4 years     9.32    323,337       9.36
        C$ 11.10 -15.77    174,000  1.8 years    12.17    174,000      12.17
        ---------------------------------------------------------------------
                        12,442,080  3.2 years   C$5.81  5,698,573     C$5.88
        ---------------------------------------------------------------------
        ---------------------------------------------------------------------

        (c) Stock-based compensation expense:

            For the nine months ended September 30, 2007, the Company
            recorded $5.3 million (2006 - $4.5 million) of stock-based
            compensation expense with a corresponding increase in contributed
            surplus (three months ended September 30, 2007 - $2.2 million;
            2006 - $1.3 million). Of the total stock-based compensation
            expense, the Company has capitalised $1.2 million and
            $3.3 million for the three and nine month periods ended
            September 30, 2007 (2006 - $1.0 million and $2.6 million
            respectively).

            The fair value of the options granted in the three months ended
            September 30, 2007 was estimated to be C$2.43 (2006 - C$3.76) per
            option and was determined using the Black-Scholes option pricing
            model with the following assumptions: expected volatility of 59%
            (2006 - 60%), risk-free interest rate of 3% (2006 - 4%) and
            expected lives of 4 years (2006 - 4 years).

            The fair value of the options granted in the nine months ended
            September 30, 2007 was estimated to be C$2.46 (2006 - C$4.61) per
            option and was determined using the Black-Scholes option pricing
            model with the following assumptions: expected volatility of 59%
            (2006 - 64%), risk-free interest rate of 3% (2006 - 4%) and
            expected lives of 4 years (2006 - 4 years).

        (d) Contributed surplus:

            The changes in the contributed surplus balance are as follows:

            -----------------------------------------------------------------
            Balance, December 31, 2006                             $  19,186
              Options granted                                          5,345
              Options exercised                                         (687)
            -----------------------------------------------------------------
            Balance, September 30, 2007                            $  23,844
            -----------------------------------------------------------------
            -----------------------------------------------------------------

        (e) Per share amounts:

            The income (loss) per share is based on the weighted average
            shares outstanding for the period. The weighted average shares
            outstanding for the three and nine month periods ended
            September 30, 2007 were 254,499,465 and 241,723,608 respectively
            (2006 - 223,319,043 and 215,181,831).

    4.  Segmented information:

        The Company's activities are conducted in two geographic segments:
        Canada and Algeria.  All activities relate to exploration and
        development of petroleum and natural gas in Algeria.

                                               Canada     Algeria      Total
        ---------------------------------------------------------------------
        Three months ended September 30
          Capital expenditures
            2007                            $     436   $  50,210  $  50,646
            2006                            $     241   $  40,913  $  41,154


                                               Canada     Algeria      Total
        ---------------------------------------------------------------------
        Nine months ended September 30
          Capital expenditures
            2007                            $   1,009   $ 136,780  $ 137,789
            2006                            $     423   $ 115,115  $ 115,538

          Total Assets
            2007                            $ 108,861   $ 679,693  $ 788,554
            2006                            $ 156,461   $ 492,893  $ 649,354
    





For further information:

For further information: First Calgary Petroleums Ltd.: Richard G.
Anderson, President and CEO, Tel: (403) 264-6697; Other contacts: James
Henderson, Pelham Public Relations, Tel: +44 (0) 207 743 6673; Carina Corbett,
4C - Burvale Limited, Tel: +44 (0) 207 559 6710; Nominated Adviser: David
Nabarro, Nabarro Wells & Co. Limited, Tel + 44 (0) 207 710 7400

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