Gemini Energy Corp. Reports Third Quarter Financial Results



    VANCOUVER, Nov. 14 /CNW/ - Gemini Energy Corp. (GNI-TSX) announces the
results of its third quarter financial statements for the period ending
September 30, 2007. Any reference in this news release to any dollar amount is
in U.S. dollars unless otherwise stated.

    SUMMARY

    
    -  Cash flow decreased to $948,376

    -  EBITDA decreased to $2,997,487

    -  Total revenues decreased to $8,939,601

    -  Net income before taxes decreased to a loss of $3,147,818
    

    Gemini's cash flow (1) for the nine-month period ended September 30, 2007
decreased to $948,376. Earnings before interest, taxes, depreciation and
amortization ("EBITDA") (2) for the third quarter of 2007 decreased to
$2,997,487 from $12,435,779 in 2006. Total revenue for the third quarter of
2007 decreased 43% to $8,939,601 compared to $15,667,350 for the same period
in 2006, while net income decreased to a loss of $5,399,972 compared to
earnings of $4,521,947 for the same period in 2006. Net income before taxes
for the third quarter of 2007 decreased to a loss of $3,147,818 from earnings
of $6,321,947 for the same period in 2006 primarily as a result of decreased
revenue resulting from lower commodity prices, increased professional fees and
interest expenses and foreign exchange fluctuation.
    Net production for the nine-month period ended September 30, 2007 totaled
1,933 million cubic feet ("MMcf") of natural gas and 15.7 thousand barrels of
natural gas liquids, or 2,027 million cubic feet of natural gas equivalent
("MMcfe") averaging 7.4 MMcfe/day. This compares with 2,429 MMcfe averaging
8.9 MMcfe/day for the same period in 2006.
    Average natural gas prices realized for the nine months ended September
30, 2007 decreased 32% to $4.14 per thousand cubic feet ("Mcf") compared to
$6.05 per Mcf during the same period in 2006. Average condensate prices
realized for the nine months ended September 30, 2007 decreased 6% to $63.81
per barrel compared to $67.56 during the same period in 2006.
    Direct operating expenses for the nine-month period ended September 30,
2007 decreased to $5,325,816 ($3,462,741 in non-cash depreciation and
depletion costs, $1,055,096 in State taxes and $807,979 in operating expenses)
compared to $7,532,600 ($4,781,502 in depreciation and depletion costs,
$1,837,398 in State taxes and $913,700 in operating expenses) for the same
period in 2006.
    Other expenses and costs for the nine-month period ended September 30,
2007 increased to $6,761,603 compared to $1,812,803 in the same period 2006.
General and administration expenses were $329,099 compared to $219,277 in
2006. Foreign exchange loss increased to $2,667,052 compared to a gain of
$286,366 in the same period in 2006. Gemini does not currently hedge its
foreign exchange exposures. Interest expense increased to $2,682,564 compared
to $1,332,330 for the same period in 2006. Cash interest paid for the
nine-month period ended September 30, 2007 was $1,631,302 and additional
interest on the accretion of the convertible debentures was $1,048,351.

    Note (1) Cash flow meaning cash flow from operations before net change in
    non-cash working capital is not a recognized measure under Canadian GAAP
    and is offered as a commonly used industry metric for comparative
    purposes only.

    Note (2) EBITDA is defined as earnings before interest, taxes,
    depreciation and amortization and other items. EBITDA is not a recognized
    measure under and is offered as a commonly used industry metric for
    comparative purposes only.

    
    -------------------------------------------------------------------------
    Reconciliation of cash                    Nine Months Ended September 30
    flow from operations
    before change in net
    working capital                                        2007         2006

    Net cash provided by
    operating activities                             $2,508,398   $9,463,437

                           Accounts payable
                            and accrued
                            liabilities              (3,629,240)     (21,282)
                           Prepaid expenses             129,416       11,337
                           Accounts receivable         (312,352)  (1,072,762)
                           Income taxes               2,252,154    2,167,767

    Cash flow from
     operations                                        $948,376  $10,548,497
     before change in
     net working capital
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Reconciliation of                         Nine Months Ended September 30
    EBITDA to net income
                                                           2007         2006

    EBITDA                                           $2,997,487  $12,435,779

    Less                   Depletion,
                            depreciation
                            and accretion             3,462,741    4,781,502
                           Interest on
                            long-term debt            2,682,564    1,332,330

                           Income taxes               2,252,154    1,800,000

    Net Income (loss)                               ($5,399,972)  $4,521,947
    -------------------------------------------------------------------------
    

    Gemini's 2006 Audited Financial Statements, Management Discussion and
Analysis, and Annual Information Form ("AIF") are available on SEDAR at
www.sedar.com.

    Gemini Energy Corp. is a public company listed on the Toronto Stock
Exchange with 24,608,642 shares issued.  The company's business is focused on
the exploration, development, and production of natural gas and natural gas
liquids at its Pinedale Anticline properties in southwest Wyoming.





For further information:

For further information: Gordon Nielsen at (604) 669-1400, or visit the
Company website at www.GeminiEnergy.com

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GEMINI ENERGY CORP.

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