Mystique Energy Announces Financial and Operational Results for the Year 2006



    CALGARY, March 27 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports
significant growth in its operational results for the twelve months ended
December 31, 2006. Cash flow increased for the third consecutive quarter and
production more than doubled while reserves almost tripled over 2005.

    
    Financial and operational results for 2006 include:

    -   Cash flow for the twelve months ended December 31, 2006 was
        $2.07 million, a 22% increase over the cash flow of $1.69 million for
        2005.
    -   Production sales for the year averaged 318 barrels of oil equivalent
        ("boepd"), more than double the average production rate of 143 boepd
        for 2005.
    -   Cash flow for the fourth quarter of 2005 was $0.72 million. Mystique
        has now generated three consecutive quarters of increasing cash
        flows.
    -   Production sales for the fourth quarter averaged 501 boepd, more than
        two and one-half times the average production rate of 195 boepd for
        the fourth quarter of 2005.
    -   Net loss of $10.3 million resulted primarily from a non-cash ceiling
        test impairment loss of $12.4 MM$ which resulted from high costs of
        finding and developing reserves and lower gas prices.

    Other operational and corporate highlights for 2006 include the following:

    -   Drilled 9 gross (8.25 net) wells in the Lochend/Bottrel/Wildcat Hills
        areas resulting in 8 cased wells (7.63 net) and one abandoned well
        (1.0 net) for an overall success rate of 89%.
    -   As a result of the successful 2006 exploration drilling program,
        proved plus probable ("P+P") reserves almost tripled from 905 Mboe to
        2530 Mboe.
    -   Added 356 Mboe of proved reserves, replacing 2006 production of
        116 Mboe by more than three times.
    -   Based on year-end production rates, P+P reserves life index increased
        from 11.6 years to 12.6 years.
    -   Completed private placement financings exceeding $6.8 million.
    -   Appointed Terry McCoy as a director and Nick Antonenko as Vice
        President - Production Operations.

    Highlights so far for the first quarter of 2007 include:

    -   Sold Garrington assets for gross proceeds of $4.05 million.
    -   Prepared right-of-way for the tie-in of Mystique's Wildcat 14-05
        well.

    Complete financial and operating results will be filed on SEDAR and made
available on Mystique's website, www.mystiqueenergy.ca, later today.

    Based in Calgary, Mystique is involved in the exploration and exploitation
of petroleum reserves in western Canada.

    (*) Use of the term barrels of oil equivalent "boe" 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.

    The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. This news release
may contain forward-looking information. Actual future results may differ
materially from those contemplated. The risks, uncertainties, and other
factors that could influence actual results are described in documents filed
with regulatory authorities.



                               BALANCE SHEETS

    -------------------------------------------------------------------------
                                                  DECEMBER 31    DECEMBER 31
                                                     2006           2005
    -------------------------------------------------------------------------
    ASSETS

    Current
      Cash and cash equivalents                  $          -   $  3,366,869
      Accounts receivable                           1,873,645      2,956,583
      Income tax receivable                           165,032         50,766
      Prepaid expenses and deposits                   129,623        158,509
                                                -----------------------------
                                                    2,168,300      6,532,727

    Restricted Cash                                   110,540        107,236
    Future Income Tax                               2,297,130              -
    Property, Plant And Equipment                  28,433,017     16,355,542
                                                -----------------------------

                                                 $ 33,008,987  $  22,995,505
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES

    Current
      Accounts payable and accrued liabilities   $ 10,067,841      8,707,855
      Bank indebtedness                            13,444,168              -
                                                -----------------------------
                                                   23,512,009      8,707,855

    Future Income Tax                                       -        660,441
    Advances Payable                                   59,354         56,050
    Asset Retirement Obligation                       678,975        336,283
                                                -----------------------------
                                                   24,250,338      9,760,629
                                                -----------------------------

    SHAREHOLDERS' EQUITY

    Share Capital                                  18,844,836     13,335,343

    Contributed Surplus                             1,031,474        733,532

    Deficit                                       (11,117,661)      (833,999)
                                                -----------------------------
                                                    8,758,649     13,234,876
                                                -----------------------------

                                                 $ 33,008,987   $ 22,995,505
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                     STATEMENTS OF OPERATIONS AND DEFICIT

    -------------------------------------------------------------------------
                                                         YEARS ENDED
                                                         DECEMBER 31
                                                     2006           2005
    -------------------------------------------------------------------------

    Revenue
    -------
      Oil and gas revenue                        $  5,231,570   $  3,012,918
      Royalties net of ARTC                        (1,117,868)      (466,710)
      Other revenue                                   104,844        128,666
                                                -----------------------------
                                                    4,218,546      2,674,874
                                                -----------------------------
    Expenses
      Production                                    1,012,176        519,729
      Transportation costs                            106,797         73,891
      General and administration                      731,889        378,454
      Depletion, depreciation and accretion        16,255,933      1,077,741
      Interest                                        301,917         15,253
      Stock-based compensation                        367,962        307,557
                                                -----------------------------
                                                   18,776,674      2,372,625
                                                -----------------------------

    Income (Loss) Before Income Taxes             (14,558,128)       302,249

    Income Taxes
      Current income tax expense                            -              -
      Future income tax expense (recovery)         (4,274,466)       126,482
                                                -----------------------------

    Net Income (Loss) For the Year                (10,283,662)       175,767

    Deficit, Beginning Of Year                       (833,999)    (1,009,766)
                                                -----------------------------

    Deficit, End Of Year                         $(11,117,661)  $   (833,999)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings (loss) per share
      Basic                                      $      (0.19)  $        0.0

      Diluted                                           (0.19)           0.0



                           STATEMENTS OF CASH FLOWS

    -------------------------------------------------------------------------
                                                         YEARS ENDED
                                                         DECEMBER 31
                                                     2006           2005
    -------------------------------------------------------------------------

    Operating Activities
      Net Income (loss) for the period           $(10,283,662)  $    175,767
      Add: Items not involving cash:
        Future income tax                          (4,274,466)       126,482
        Stock-based compensation                      367,962        307,557
        Depletion, depreciation and accretion      16,255,933      1,077,741
                                                -----------------------------
                                                    2,065,767      1,687,547
      Change in non-cash working capital items:
        Accounts receivable                         1,082,938     (1,760,444)
        Accounts payable and accrued liabilities     (531,220)     1,349,804
        Income tax receivable                        (114,266)       (26,085)
        Prepaid expenses and deposits                  28,886       (101,203)
                                                -----------------------------
                                                    2,532,105      1,149,619
                                                -----------------------------

    Financing Activities
      Advances payable                                  3,304          2,103
      Shares issued for cash                        6,756,367      5,037,391
      Bank indebtedness                            13,444,168              -
      Payable to related parties                            -        (73,000)
      Restricted cash                                  (3,304)        (2,103)
                                                -----------------------------
                                                   20,200,535      4,964,391
                                                -----------------------------

    Investing Activities
      Petroleum and natural gas interest
       acquisitions                               (27,968,643)   (12,553,380)
      Purchase of other equipment                     (22,073)       (40,419)
      Net change in non-cash working capital
       balances                                     1,891,207      1,620,931
                                                -----------------------------
                                                  (26,099,509)   (10,972,868)
                                                -----------------------------

    Decrease In Cash And Cash Equivalents          (3,366,869)    (4,858,858)

    Cash And Cash Equivalents, Beginning
     Of Year                                        3,366,869      8,225,727
                                                -----------------------------

    Cash And Cash Equivalents, End Of Year       $          -  $   3,366,869
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental Disclosure

      Interest paid                              $    289,109  $      15,253
      Income tax paid                            $          -  $           -
    




For further information:

For further information: Victor Luhowy, President & Chief Executive
Officer, Mystique Energy, Inc., Tel: (403) 261-3634, Fax: (403) 265-3348,
vic@mystiqueenergy.ca, Website - www.mystiqueenergy.ca

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MYSTIQUE ENERGY, INC.

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