Insignia Energy announces a 600% increase in 2009 year-end reserves

CALGARY, March 2 /CNW/ - Insignia Energy Ltd. ("ISN" - TSX) ("Insignia" or the "Company") is pleased to announce the results of its independent reserve evaluation effective December 31, 2009 of the Company's reserves by GLJ Petroleum Consultants Ltd. ("GLJ").

    
    2009 YEAR-END RESERVE HIGHLIGHTS
    --------------------------------

    -   Proved reserves increased by 601% to 5.4 mmboe and proved plus
        probable reserves increased by 630% to 13.3 mmboe, compared to 2008
        year end levels.
    -   On a per-share basis, proved plus probable reserves increased by 200%
        and proved reserves increased by 188% compared to 2008 year end
        levels.
    -   The net present value of the future net revenue attributable to the
        Company's proved plus probable reserves (before tax and discounted at
        10%) was $158.1 million resulting in a net asset value per share of
        $5.42 per common share.
    -   Insignia replaced 2300% of annual production for an all-in annual
        Finding, Development and Acquisition ("FD&A") cost of $10.21 per
        barrel of oil equivalent ("boe") before consideration of future
        development capital ("FDC") on a proved plus probable basis. FD&A
        costs including FDC were $18.01 per boe on a proved plus probable
        basis.
    -   Net acquisition spending was $110.3 million resulting in a net
        acquisition cost of $9.30 per boe on a proved plus probable basis,
        prior to FDC and $17.63 per boe on a proved plus probable basis
        including FDC.
    -   Reserves additions resulted in a one year recycle ratio of 1.6 times
        based on an annual 2009 estimated operating netback of $16.81 per boe
        and an annual FD&A cost of $10.21 and a one year recycle ratio of 2.2
        times based on a fourth quarter 2009 estimated operating netback of
        $22.14 per boe and an annual FD&A cost of $10.21.
    -   Based on fourth quarter 2009 average production of 2,243 boe per day,
        Insignia's reserve life index ("RLI") increased more than three times
        on a year over year basis to 16.2 years on proved plus probable basis
        and 6.6 years on a proved basis.

    NET ASSET VALUE ("NAV")(a)
    --------------------------

    -------------------------------------------------------------------------
                                                          December  December
                                                          31, 2009  31, 2008
                                                               NAV       NAV
                                                         GLJ Price GLJ Price
                                                          Forecast  Forecast
    $Millions, except per share amounts                   (2010-01) (2009-01)
    -------------------------------------------------------------------------
    Net(b) Proved Plus Probable Reserves Discounted
     at 10% (Before Tax)                                    $158.1     $26.8
    Undeveloped Lands(c)                                      30.2       8.5
    Net Cash (Debt) (Unaudited)(d)                           (17.4)     53.3
    Proceeds from Dilutive Stock Options                       3.3       0.4
    -------------------------------------------------------------------------
    Net Asset Value                                          174.2      89.0
    Shares Outstanding (000's)(d)(e)                        32,142    16,372
    NAV/Share                                                $5.42     $5.44

    (a) Financial information is based on management prepared financial
        statements for the year ended December 31, 2009 which are in the
        process of being audited by Insignia's independent auditors and,
        accordingly, such financial information is subject to change based on
        the results of the audit. See "Cautionary Statements - Unaudited
        Financial Information" below.
    (b) "Net" means the Company's working interest (operating or non-
        operating) share after deduction of royalty obligations plus the
        Company's royalty interest in reserves.
    (c) Undeveloped land value is based on a management prepared internal
        estimate as at December 31, 2009. Insignia had a total of 232,787 net
        undeveloped acreage at year end 2009.
    (d) Net Cash (Debt) excludes any future income tax asset. For the 2008
        year end it assumes that the Company's Equity Commitment was
        exercised whereby the Company would issue 3,676,470 common shares for
        total proceeds of $25 million.
    (e) Represents total common shares outstanding (basic) plus the dilutive
        stock options (2009-1,482,000, 2008-99,000).

    RESERVES
    --------
    

See "Cautionary Statement - Information Regarding Disclosure on Oil and Gas Reserves and Operational Information" for explanations and discussions and "Cautionary Statement - Forward looking information and statements" for a statement of principal assumptions and risks that may apply.

The Company's total proved plus probable reserves increased by 630% in 2009 to 13.3 MMboe and proved reserves increased by 601% to 5.4 MMboe. These increases are mainly attributable to the acquisition of Grey Wolf Exploration Inc. ("Grey Wolf") in the third quarter of 2009.

Summary of Oil and Gas Reserves as of December 31, 2009

    
                       LIGHT AND                              CONVENTIONAL
                      MEDIUM OIL           HEAVY OIL          NATURAL GAS
                  ------------------- ------------------- -------------------
    RESERVES        Gross      Net      Gross      Net      Gross      Net
     CATEGORY       (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)    (MMcf)    (MMcf)
    ------------- --------- --------- --------- --------- --------- ---------

    PROVED
      Producing        317       260        26        25    13,968    12,981
      Developed
       Non-
        Producing       14        12         -         -     2,656     2,348
      Undeveloped        -         -         -         -    11,052     9,889
                  --------- --------- --------- --------- --------- ---------
    TOTAL PROVED       331       272        26        25    27,676    25,217
    PROBABLE           199       157         9         8    42,074    35,300
                  --------- --------- --------- --------- --------- ---------
    TOTAL PROVED
     PLUS
     PROBABLE          530       429        35        33    69,749    60,518
                  --------- --------- --------- --------- --------- ---------
                  --------- --------- --------- --------- --------- ---------


                      NATURAL GAS         TOTAL OIL
                        LIQUIDS           EQUIVALENT
                  ------------------- -------------------
    RESERVES        Gross      Net      Gross      Net
     CATEGORY       (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)
    ------------- --------- --------- --------- ---------

    PROVED
      Producing        203       158     2,874     2,606
      Developed
       Non-
        Producing       96        71       552       474
      Undeveloped      152       108     1,994     1,756
                  --------- --------- --------- ---------
    TOTAL PROVED       452       337     5,421     4,836
    PROBABLE           635       425     7,856     6,473
                  --------- --------- --------- ---------
    TOTAL PROVED
     PLUS
     PROBABLE        1,087       761    13,277    11,309
                  --------- --------- --------- ---------
                  --------- --------- --------- ---------


    Net Present Values of Future Net Revenue
    As of December 31, 2009, Forecast Prices and Costs

                                      BEFORE INCOME TAXES DISCOUNTED AT
                                                (%/year)
                            -------------------------------------------------
    RESERVES                    0%        5%       10%       15%       20%
     CATEGORY                  (M$)      (M$)      (M$)      (M$)      (M$)
    ----------------------- --------- --------- --------- --------- ---------
    PROVED
      Producing               85,716    69,370    58,849    51,480    46,007
      Non-Producing           16,901    14,026    12,021    10,555     9,440
      Undeveloped             38,582    25,847    18,181    13,159     9,660
                            --------- --------- --------- --------- ---------
    TOTAL PROVED             141,198   109,243    89,051    75,195    65,107

    TOTAL PROBABLE           173,402   104,917    69,050    47,790    34,121
                            --------- --------- --------- --------- ---------
    TOTAL PROVED PLUS
     PROBABLE                314,600   214,160   158,101   122,984    99,228
                            --------- --------- --------- --------- ---------
                            --------- --------- --------- --------- ---------


                                     AFTER INCOME TAXES DISCOUNTED AT
                                                (%/year)
                            -------------------------------------------------
    RESERVES                    0%        5%       10%       15%       20%
     CATEGORY                  (M$)      (M$)      (M$)      (M$)      (M$)
    ----------------------- --------- --------- --------- --------- ---------
    PROVED
      Producing               85,716    69,370    58,849    51,480    46,007
      Non-Producing           16,901    14,026    12,021    10,555     9,440
      Undeveloped             38,582    25,847    18,181    13,159     9,660
                            --------- --------- --------- --------- ---------
    TOTAL PROVED             141,198   109,243    89,051    75,195    65,107

    TOTAL PROBABLE           145,797    90,933    61,292    43,200    31,272
                            --------- --------- --------- --------- ---------
    TOTAL PROVED PLUS
     PROBABLE                286,995   200,176   150,343   118,395    96,379
                            --------- --------- --------- --------- ---------
                            --------- --------- --------- --------- ---------

    Notes:

    (1) Net present value of future net revenue may not represent fair market
        value.
    (2) Other Company revenue and costs not related to a specific production
        group have been allocated proportionately to the above noted
        production groups.
    (3) Estimated future abandonment and reclamation costs related to a
        property have been taken into account by GLJ in determining reserves
        that should be attributed to a property and, in determining the
        aggregate future net revenue therefrom, there was deducted the
        reasonable estimated future well abandonment costs. No allowance was
        made, however, for reclamation of well sites or the abandonment and
        reclamation of any facilities or wells which have no reserves
        assigned.


    Summary of Pricing and Inflation Rate Assumptions
    Forecast Prices and Costs, GLJ Forecast Effective January 1, 2010

                   OIL                       NATURAL GAS
          ------------------- --------------------------------------
                               Natural  Pentanes
            WTI at            Gas AECO    Plus    Butanes
           Cushing  Edmonton   Average  Edmonton  Edmonton Inflation Exchange
          Oklahoma  City Gate   Price      Par       Par   Rates(1)   Rate(2)
    Year  ($US/Bbl)($Cdn/Bbl)($Cdn/Mcf)($Cdn/Bbl)($Cdn/Bbl) %/Year ($US/$Cdn)
    ----- --------- --------- -------- --------- --------- --------- --------

    Forecast
    2010     80.00     83.26     5.96      84.93     64.11     2.0     0.950
    2011     83.00     86.42     6.79      88.15     66.54     2.0     0.950
    2012     86.00     89.58     6.89      91.37     68.98     2.0     0.950
    2013     89.00     92.74     6.95      94.59     71.41     2.0     0.950
    2014     92.00     95.90     7.05      97.82     73.84     2.0     0.950
    2015     93.84     97.84     7.16      99.79     75.33     2.0     0.950
    2016     95.72     99.81     7.42     101.81     76.85     2.0     0.950
    2017     97.64    101.83     7.95     103.86     78.41     2.0     0.950
    2018     99.59    103.88     8.52     105.96     79.99     2.0     0.950
    2019    101.58    105.98     8.69     108.10     81.60     2.0     0.950
    2020+   Escalated oil, gas and product prices at 2% per year thereafter

    Notes:

    (1) Inflation rates for forecasting prices and costs.
    (2) Exchange rates used to generate the benchmark reference prices in
        this table.


    Reconciliation of Gross Reserves By Principal Product Type
    Forecast Prices and Costs

                        LIGHT AND MEDIUM OIL               HEAVY OIL
                  ----------------------------- -----------------------------
                                        Proved                        Proved
                                         Plus                          Plus
                    Proved   Probable  Probable   Proved   Probable Probable
       FACTORS      (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)    (Mbbl)
    ------------- --------- --------- --------- --------- --------- ---------
    December 31,
     2008              101        98       199        26       176       201

      Discoveries        -         -         -         6         3         9
      Extensions         -         -         -         -         -         -
      Infill
       Drilling          -         -         -         -         -         -
      Improved
       Recovery          -         -         -         -         -         -
      Technical
       Revisions        56         3        60        21         4        25
      Acquisitions     227        96       323         -         -         -
      Dispositions       -         -         -       (15)     (173)     (188)
      Economic
       Factors           6         2         8        (6)       (1)       (7)
      Production       (60)        -       (60)       (6)        -        (6)
    -------------------------------------------------------------------------
    December 31,
     2009              331       199       530        26         9        35
    -------------------------------------------------------------------------


                     CONVENTIONAL NATURAL GAS      NATURAL GAS LIQUIDS
                  ----------------------------- -----------------------------
                                        Proved                       Proved
                                         Plus                         Plus
                    Proved   Probable  Probable  Proved   Probable  Probable
       FACTORS      (MMcf)    (MMcf)    (MMcf)   (Mbbl)    (Mbbl)    (Mbbl)
    ------------- --------- --------- --------- --------- --------- ---------
    December 31,
     2008            3,755     4,526     8,281       20        18        37

      Discoveries      607       364       970       17        10        27
      Extensions         -         -         -        -         -         -
      Infill
       Drilling          -         -         -        -         -         -
      Improved
       Recovery          -         -         -        -         -         -
      Technical
       Revisions       248    (1,179)     (931)      10        (3)        7
      Acquisitions  25,821    38,531    64,352      440       611     1,051
      Dispositions    (174)     (160)     (334)       -        (1)       (2)
      Economic
       Factors         (37)       (9)      (46)      (1)        1         -
      Production    (2,544)        -    (2,544)     (33)        -       (33)
    -------------------------------------------------------------------------
    December 31,
     2009           27,676    42,074    69,749      452       636     1,087
    -------------------------------------------------------------------------


                               BOE
                  -----------------------------
                                        Proved
                                         Plus
                    Proved   Probable  Probable
    FACTORS         (Mbbl)    (Mbbl)    (Mbbl)
    ------------- --------- --------- ---------
    December 31,
     2008              773     1,045     1,818

      Discoveries      124        74       198
      Extensions         -         -         -
      Infill
       Drilling          -         -         -
      Improved
       Recovery          -         -         -
      Technical
       Revisions       127      (191)      (64)
      Acquisitions   4,971     7,129    12,100
      Dispositions     (44)     (201)     (245)
      Economic
       Factors          (7)        -        (7)
      Production      (523)        -      (523)
    -------------------------------------------
    December 31,
     2009            5,421     7,856    13,277
    -------------------------------------------

    Note: Insignia has no unconventional reserves (Bitumen, Synthetic Crude
    Oil, Natural Gas from Coal, etc.).

    FD&A COSTS
    ----------
    

In 2009 Insignia's capital program was dominated (90% of the program) by the successful acquisition of Grey Wolf in the third quarter of 2009. Net acquisition spending was $110.3 million resulting in a net acquisition cost of $9.30 per boe on a proved plus probable basis, prior to FDC and $17.63 per boe on a proved plus probable basis including FDC. Exploration and Development Expenditures ("E&D") included opportunistic land purchases and low cost seismic purchases in a low natural gas price environment. In 2009 Insignia spent $12.1 million on E&D of which $5.5 million was on land and seismic and $6.6 million on drilling, completions and equipping, of which, $4.5 million was associated with the Grey Wolf properties, incurred late in 2009 and no additional reserves were attributed to these expenditures in the 2009 reserve report.

    
    -------------------------------------------------------------------------
                                                          Three Year Average
                          2009                2008             2007-2009
    -------------------------------------------------------------------------
                             Proved              Proved              Proved
                              plus                plus                plus
                    Proved  Probable    Proved  Probable    Proved  Probable
    -------------------------------------------------------------------------
    Exploration and
     Development
     expenditures
     ($ thousands)
     (note 2)       12,131    12,131     5,866     5,866    21,121    21,121
    Net
     Acquisitions/
     (Dispositions)
     ($ thousands)
     (note 2)      110,259   110,259    45,313    45,313   157,302   157,302
    Change in
     future
     development
     capital
     ($ thousands)
      - Exploration
       and
       Development    (270)   (5,331)     (584)     (200)     (854)   (5,531)
      - Acquis-
       itions/
       Disposi-
       tions        25,563    98,756     1,352     9,818    27,649   110,308

    Reserves
     additions
     after
     revisions
     (Mboe)
      - Exploration
       and
       Development     244       127        70        99       527       715
      - Acquis-
       itions/
       Disposi-
       tions         4,927    11,855       657     1,359     5,647    13,315
                  -----------------------------------------------------------
                     5,171    11,982       727     1,458     6,174    14,030
    Finding,
     Development
     & Acquis-
     ition Costs
     ($/boe)

    Including
     Change in
     Future
     Development
     Cost (note 1)
      Exploration
       and
       development   48.61     53.54     75.53     57.08     38.48     21.80
      Acquis-
       itions/
       Disposi-
       tions         27.57     17.63     70.99     40.57     32.75     20.10
                  -----------------------------------------------------------
      Total F,D&A    28.56     18.01     71.43     41.70     33.24     20.19
    Excluding
     Change in
     Future
     Development
     Cost
      Exploration
       and
       development   49.72     95.52     83.88     59.09     40.11     29.53
      Acquis-
       itions/
       Disposi
       tions         22.38      9.30     68.93     33.35     27.85     11.81
                  -----------------------------------------------------------
      Total F,D&A    23.67     10.21     70.37     35.10     28.90     12.72

    Reserves
     Replacement
     Ratio            989%     2291%      355%      712%
    Reserve Life
     Index based on
     fourth quarter
     production
     (years)           6.6      16.2       1.9       4.4

    Notes:

    1.  Calculation includes reserve revisions and changes in future
        development costs. Insignia also calculates finding, development and
        acquisition ("FD&A") costs which incorporate both the costs and
        associated reserve additions related to acquisitions net of any
        dispositions during the year. Since acquisitions can have a
        significant impact on Insignia's annual reserve replacement costs,
        the Company believes that FD&A costs provide a more meaningful
        portrayal of Insignia's cost structure.

    2.  2009 figures include information based on estimated unaudited
        financial results that may change on the completion of the audited
        financial statements.


    FDC USING FORECAST PRICES AND COSTS

                                                              Proved plus
                                         Proved Future      Probable Future
                                          Development         Development
    Year                                     Costs               Costs
    --------------------------------- ------------------- -------------------
                                         ($ thousands)       ($ thousands)
    2010                                    20,333              36,741
    2011                                     5,911              33,686
    2012                                         -              28,481
    2013                                         -               5,306
    2014                                         -                   -
    2015 and subsequent                        552                 563
    -------------------------------------------------------------------------
    Undiscounted total                      26,795             104,777
    -------------------------------------------------------------------------
    Discounted @ 10%/yr                  24,836              90,776
    -------------------------------------------------------------------------


    LAND HOLDINGS
    -------------
    

The Company has completed an internal evaluation of the fair market value of the Company's undeveloped land holdings as at December 31, 2009. This evaluation was completed principally using industry activity levels, third party transactions and land acquisitions that occurred in proximity to Insignia's undeveloped lands during the past year. The Company has estimated the value of its net undeveloped acreage at $30.2 million.

A summary of the Company's land holdings at December 31, 2009 is outlined below:

    
    -------------------------------------------------------------------------
                       Developed         Undeveloped             Total
    (acres)         Gross      Net      Gross      Net      Gross      Net
    -------------------------------------------------------------------------
    Alberta         92,103    61,247   200,692   171,110   292,795   232,357
    Other           26,408    21,609    76,340    61,677   102,748    83,286
    -------------------------------------------------------------------------
    Total          118,511    82,856   277,032   232,787   395,543   315,643
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    CAUTIONARY STATEMENTS
    ---------------------
    

Unaudited financial information

Certain financial and operating information included in this press release for the quarter and year ended December 31, 2009, such as exploration and development expenditures, finding, development and acquisition costs, operating netback and net asset value, are based on estimated unaudited financial results for the quarter and year then ended, and are subject to the same limitations as discussed under "Forward- looking information and statements" set out below. These estimated amounts may change upon the completion of audited financial statements for the year ended December 31, 2009 and changes could be material.

Information Regarding Disclosure on Oil and Gas Reserves and Operational Information

The reserves data set forth above is based upon an independent reserves assessment and evaluation prepared by GLJ with an effective date of December 31, 2009 (the "GLJ Report"). The presentation summarizes the Company's crude oil, natural gas liquids and natural gas reserves and the net present values before income tax of future net revenue for the Company's reserves using forecast prices and costs based on the GLJ Report. The GLJ Report has been prepared in accordance with the standards contained in the COGE Handbook and the reserve definitions contained in NI 51-101.

All evaluations and reviews of future net cash flows are stated prior to any provisions for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimates of future net revenues presented in the tables above represent the fair market value of the reserves. There is no assurance that the forecast prices and cost assumptions will be attained and variances could be material. The recovery and reserve estimates of our crude oil, natural gas liquids and natural gas reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. Actual crude oil, natural gas and natural gas liquids reserves may be greater than or less than the estimates provided herein.

The reserve data provided in this release only represents a summary of the disclosure required under National Instrument 51-101 ("NI 51-101"). Additional disclosure will be provided in the Company's Annual Information Form filed on www.sedar.com on or before March 31, 2010.

In relation to the disclosure of net asset value ("NAV"), the NAV table shows what is normally referred to as a "produce-out" NAV calculation under which the current value of the Company's reserves would be produced at forecast future prices and costs and do not necessarily represent a "going concern" value of the Company. The value is a snapshot in time and is based on various assumptions including commodity prices and foreign exchange rates that vary over time. It should not be assumed that the future net revenues estimated by GLJ represent the fair market value of the reserves, nor should it be assumed that Insignia's internally estimated value of its undeveloped land holdings represent the fair market value of the lands.

Non-GAAP Measures Advisory

The above information includes non-GAAP measures not defined under generally accepted accounting principles ("GAAP"), including operating netback, recycle ratio, net cash and reserve life index. Non-GAAP measures do not have any standardized meaning prescribed by GAAP and are therefore unlikely to be comparable to similar measures presented by other issuers. Operating netback is calculated as revenue less royalties, operating expenses, transportation expenses and net of any realized gains or losses on financial contracts. Recycle ratio is calculated as operating netback divided by the capital cost of reserve replacement which is one of our indicators to ensure our capital programs are adding reserves at an economic cost. Reserve life index is calculated by dividing our reserves by our annualized fourth quarter production which is one of our indicators for quality of a reserve base.

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the volumes and estimated value of Insignia's oil and gas reserves; the life of Insignia's reserves; the volume and product mix of Insignia's oil and gas production; future oil and natural gas prices; future results from operations and operating metrics; future costs, expenses and royalty rates; future interest costs and the exchange rate between the $US and $Cdn.

The recovery and reserve estimates of Insignia's reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Insignia which have been used to develop such statements and information but which may prove to be incorrect. Although Insignia believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Insignia can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: results from drilling and development activities consistent with past operations; the continued and timely development of infrastructure in areas of new production; continued availability of debt and equity financing and cash flow to fund Insignia's current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Insignia operates; the timely receipt of any required regulatory approvals; the ability of Insignia to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Insignia has an interest in to operate the field in a safe, efficient and effective manner; the ability of Insignia to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Insignia to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Insignia operates; and the ability of Insignia to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Insignia's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Insignia or by third party operators of Insignia's properties, increased debt levels or debt service requirements; inaccurate estimation of Insignia's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Insignia's public disclosure documents, (including, without limitation, those risks identified in this news release and Insignia's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Insignia does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

    
    ABOUT INSIGNIA
    --------------
    

Insignia is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "ISN".

%SEDAR: 00003847E

SOURCE Insignia Energy Ltd.

For further information: For further information: Jeff Newcommon, President & CEO, (403) 536-8138, info@insigniaenergy.ca, Website: www.insigniaenergy.ca

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