Mystique Energy Reports Financial Results for the Year 2007



    CALGARY, May 30 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports
its financial results for the twelve months ended December 31, 2007.

    
    Financial results for 2007 include:

    -  Cash flow for the twelve months ended December 31, 2007 was
       ($1.66) million compared to $2.07 million for 2006.
    -  Production sales for the year averaged 195 barrels of oil equivalent
       ("boepd"), compared to 318 boepd for 2006.
    -  Net loss for the twelve months ended December 31, 2007 was
       $8.07 million compared to a net loss of $10.28 million for 2006.

    Corporate events for 2007 include the following:

    -  Obtained creditor protection under the Companies' Creditors
       Arrangement Act ("CCAA") effective 2007-04-24.
    -  Sold all petroleum assets for gross proceeds of $23.25 million.
    -  Eliminated all bank debt from proceeds of asset sales.
    -  Executed a letter of intent with Petro Energy Corp. whereby Mystique
       and Petro Energy Corp. would merge by means of an amalgamation or
       other business arrangement.
    -  Filed a plan of arrangement ("Plan") with Alberta Court of Queen's
       Bench.
    -  Obtained approval of the Plan by unsecured creditors.

    Additional corporate events so far in 2008 include:

    -  Completed the initial cash distribution to unsecured creditors.
    -  Obtained approval for the extension of the Plan until 2008-09-15 to
       provide additional time for the anticipated business combination with
       Petro Energy Corp to be completed and to make a final cash
       distribution to unsecured creditors.

    Complete financial results will be filed on SEDAR later today.
    

    (*) 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
                                                         2007           2006
    -------------------------------------------------------------------------
    ASSETS

    Current
      Cash and cash equivalents                 $   8,300,964   $          -
      Accounts receivable                             272,398      1,873,645
      Income tax receivable                                 -        165,032
      Refundable deposits                              93,133         27,956
      Prepaid expenses                                135,934        101,667
                                                -----------------------------
                                                    8,802,429      2,168,300

    Restricted Cash (Note 5)                                -        110,540
    Future Income Tax (Note 11)                             -      2,297,130
    Property, Plant And Equipment (Note 6)             50,659     28,433,017
                                                -----------------------------

                                                $   8,853,088   $ 33,008,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES

    Current
      Accounts payable and accrued liabilities  $     382,406     10,067,841
      Accounts payable per CCAA (Note 13)           9,696,456              -
      Bank indebtedness (Note 6)                            -     13,444,168
                                                -----------------------------
                                                   10,078,862     23,512,009

    Advances Payable (Note 5)                               -         59,354
    Asset Retirement Obligation (Note 7)                    -        678,975
                                                -----------------------------
                                                   10,078,862     24,250,338
                                                -----------------------------

    SHAREHOLDERS' EQUITY (Deficiency)

    Share Capital (Note 9)                         16,649,434     18,844,836

    Contributed Surplus                             1,317,252      1,031,474

    Deficit                                       (19,192,460)   (11,117,661)
                                                -----------------------------
                                                   (1,225,774)     8,758,649
                                                -----------------------------

                                                $   8,853,088   $ 33,008,987
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Going Concern (Note 1); Commitments (Note 10)

    Approved by the Directors:

        "Victor Luhowy" Director                "Brent Walter" Director
    ---------------------------------       -------------------------------



                    STATEMENTS OF OPERATIONS AND DEFICIT

    -------------------------------------------------------------------------
                                                             YEARS ENDED
                                                             DECEMBER 31,
                                                         2007           2006
    -------------------------------------------------------------------------

                  Revenue
                  -------
      Oil and gas revenue                       $   3,512,805   $  5,231,570
      Royalties, net of ARTC                         (928,367)    (1,117,868)
      Other revenue                                   364,208        104,844
                                                -----------------------------
                                                    2,948,646      4,218,546
                                                -----------------------------
    Expenses
      Production                                      662,566      1,012,176
      Transportation costs                             36,529        106,797
      General and administration (Note 12)          3,439,732        731,889
      Depletion, depreciation and accretion         1,999,220     16,255,933
      Interest                                        470,617        301,917
      Stock-based compensation                        285,777        367,962
                                                -----------------------------
                                                    6,894,441     18,776,674
                                                -----------------------------

    Loss From Operations                           (3,945,795)   (14,558,128)

    Loss on Sale of Assets                         (4,027,276)             -
                                                -----------------------------

    Loss Before Income Taxes                       (7,973,071)   (14,558,128)

    Future Income Tax Expense (Recovery)
     (Note 11)                                        101,728     (4,274,466)
                                                -----------------------------

    Net Loss For the Year and Comprehensive Loss   (8,074,799)   (10,283,662)

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

    Deficit, End Of Year                        $ (19,192,460)  $(11,117,661)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Going Concern (Note 1)

    Loss per share - basic and diluted
     (Note 2(i))                                $       (0.14)  $      (0.19)



                          STATEMENTS OF CASH FLOWS

    -------------------------------------------------------------------------
                                                             YEARS ENDED
                                                             DECEMBER 31,
                                                         2007           2006
    -------------------------------------------------------------------------

    Operating Activities
      Net loss for the period                   $  (8,074,799)  $(10,283,662)
      Add: Items not involving cash:
        Loss on sale of assets                      4,027,276              -
        Future income tax (recovery)                  101,728     (4,274,466)
        Stock-based compensation                      285,777        367,962
        Depletion, depreciation and accretion       1,999,220     16,255,933
                                                -----------------------------
                                                   (1,660,798)     2,065,767
      Change in non-cash working capital items:
        Accounts receivable                         1,601,248      1,082,938
        Accounts payable and accrued liabilities      607,325       (531,220)
        Income tax receivable                         165,032       (114,266)
        Prepaid expenses and deposits                 (99,444)        28,886
                                                -----------------------------
                                                      613,365      2,532,105
                                                -----------------------------

    Financing Activities
      Advances payable                                (59,354)         3,304
      Shares issued for cash                                -      6,756,367
      Bank indebtedness                           (13,444,168)    13,444,168
      Restricted cash                                 110,540         (3,304)
                                                -----------------------------
                                                  (13,392,982)    20,200,535
                                                -----------------------------

    Investing Activities
      Petroleum and natural gas interest
       acquisitions                                  (778,261)   (27,968,643)
      Proceeds on sale of assets, net of costs     22,455,147              -
      Purchase of other equipment                           -        (22,073)
      Net change in non-cash working capital
       balances                                      (596,304)     1,891,207
                                                -----------------------------
                                                   21,080,582    (26,099,509)
                                                -----------------------------

    Increase (Decrease) In Cash And Cash
     Equivalents                                    8,300,964     (3,366,869)

    Cash And Cash Equivalents, Beginning Of Year            -      3,366,869
                                                -----------------------------

    Cash And Cash Equivalents, End Of Year      $   8,300,964   $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental Disclosure :

    Interest paid                               $     470,617   $    289,109
    Income tax paid                             $           -   $          -
    

    %SEDAR: 00001147E




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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