One Exploration Inc. announces asset disposition and credit facility



    
    /NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE
    UNITED STATES./
    

    CALGARY, Aug. 10 /CNW/ - One Exploration Inc. (the "Corporation" or
"OneEx") announces it has sold non-operated natural gas assets in the Morley,
Highvale, Ferrier and Atmore areas of Alberta (the "Assets") for $2.35 million
with an effective date of June 1, 2009, subject to normal purchase price
adjustments. At March 31, 2009 a mechanical update of the reserves associated
with the Assets was prepared (the "Reserves Update") using the March 31, 2009
Sproule Associates Limited price forecast.
    The total proved company share of reserves associated with the assets in
the Reserves Update was 931 mmcf and total proven plus probable reserves were
1,662 mmcf. The future net revenues in the Reserves Update discounted at 0%,
5%, 10% and 15% are disclosed in the following table:

    
    -------------------------------------------------------------------------
                                         0          5         10         15
    Reserves Category                  (M$)       (M$)       (M$)       (M$)
    -------------------------------------------------------------------------
    Proved
    Developed Producing               1,938      1,653      1,444      1,286
    Developed Non-Producing               -          -          -          -
    Undeveloped                           -          -          -          -
    Total Proved                      1,938      1,653      1,444      1,286
    Probable                          2,150      1,584      1,230        994
    Total Proved Plus Probable        4,088      3,237      2,674      2,280
    -------------------------------------------------------------------------

    Pricing used in the Reserves Update is outlined in the following table:

    -------------------------------------------------------------------------
                    Crude Oil         Natural       NGLs
                                        gas
           ---------------------------------------------------
                     Edmonton Cromer  Natural Pentanes
                       Par    Medium   Gas(i)   Plus   Butanes
              WTI    Price 40  29.3     AECO     FOB    F.O.B. Infl- Exchange
            Cushing   degree  degree    Gas     Field   Field  ation   Rate
           Oklahoma    API     API     Prices   Gate    Gate    Rate   (iii)
             ($US/   ($Cdn/  ($Cdn/   ($Cdn/   ($Cdn/  ($Cdn/   (ii)   ($US/
    Year      bbl)     bbl)    bbl)    MMBtu)    bbl)    bbl)  (%/Yr)  $Cdn)
    -------------------------------------------------------------------------

    2009(iv)  49.10    59.56   54.80     4.70   61.00   46.62    2.0   0.800

    2010      55.42    63.37   58.30     5.93   64.90   47.23    2.0   0.850

    2011      60.37    67.15   61.77     6.42   68.77   50.05    2.0   0.875

    2012      75.37    77.48   71.28     7.12   79.35   57.75    2.0   0.950

    2013      81.18    83.58   76.89     7.50   85.60   62.30    2.0   0.950

    Thereafter                    Various Escalation Rates

    Notes:
    (i)   This summary table identifies benchmark reference pricing schedules
          that might apply to a reporting issuer.
    (ii)  Inflation rates for forecasting prices and costs.
    (iii) Exchange rates used to generate the benchmark reference prices in
          this table.
    (iv)  Nine months ending December 31, 2009.
    (v)   Product sale prices will reflect these reference prices with
          further adjustments for quality and transportation to point of
          sale.
    -------------------------------------------------------------------------

    Historical reported production from the Assets is outlined in the table
below:

    -------------------------------------------------------------------------
                                                                  Barrel oil
                                            Natural gas   Ngl's   equivalent
                                              (mcf/d)    (boe/d)    (boe/d)
    -------------------------------------------------------------------------
    Year ended December 31, 2008                 984           1         165
    Quarter ended March 31, 2009                 833           1         140
    Quarter ended June 30, 2009                  860           -         144
    -------------------------------------------------------------------------
    

    Management believes that this transaction represents attractive metrics
in the current business environment and improves the Corporation's financial
flexibility.
    The Corporation has entered into a revolving credit facility with a
Canadian chartered bank with a limit of $5.7 million. Pro-forma net debt
immediately following the disposition is approximately $4.5 million. The loan
facility matures on October 31, 2009 and bears interest at prime plus 2%.

    
    Reader Advisory
    ---------------
    

    This news release does not constitute an offer to sell securities, nor is
it a solicitation of an offer to buy securities, in any jurisdiction. All
sales will be made through registered securities dealers in jurisdictions
where the offering has been qualified for distribution. The securities offered
are not, and will not be, registered under the securities laws of the United
States of America, nor any state thereof and may not be sold in the United
States of America absent registration in the United States or the availability
of an exemption from such registration.

    
    Neither the TSX Venture Exchange nor its Regulation Service Provider (as
    that term is defined in the policies of the TSX Venture Exchange) accepts
    responsibility for the adequacy or accuracy of this release.
    

    Natural gas volumes are converted to barrel of oil equivalent at six
thousand cubic feet of natural gas for each barrel of oil equivalent ("boe")
based on the relative heating content of natural gas to crude oil. Readers are
cautioned that the relative values of natural gas and crude oil may differ and
that the barrel of oil equivalent measure may not be representative of the
relative values of natural gas and crude oil. In this news release: boe/d
means boe per day; mcf/d means thousand cubic feet per day; mboe means
thousand boe; mmcf means million cubic feet; bbl means barrel and mmbtu means
million British Thermal Units.
    Investors are further cautioned that the preparation of financial
statements in accordance with Canadian generally accepted accounting
principles ("GAAP") requires management to make certain judgments and
estimates that affect the reported amounts of assets, liabilities, revenues
and expenses. Estimating reserves is also critical to several accounting
estimates and requires judgments and decisions based upon available
geological, geophysical, engineering and economic data. These estimates may
change, having either a negative or positive effect on net earnings as further
information becomes available, and as the economic environment changes.
    The terms "funds from operations", "operating netbacks" and "net debt"
are not recognized measures under GAAP. OneEx's method of calculating these
measures may differ from other companies, and accordingly these measures may
not be comparable to measures used by other companies. The Corporation
determines its funds from operations as cash flow from operating activities
before changes in non-cash working capital. Funds from operations per share
are calculated using the weighted average basic and diluted shares used in the
calculation of earnings per share. Management believes that in addition to
cash flow from operating activities, funds from operations is a useful
supplemental measure as it demonstrates OneEx's ability to generate cash
necessary to repay debt or fund future growth through capital investment
before changes in non-cash working capital balances. Investors are cautioned
that funds from operations should not be construed as an alternative to cash
flow from operating activities determined in accordance with GAAP. Operating
netback per boe is the net result of the Corporation's revenue, royalty, lease
operating and transportation expenses as found in the accompanying financial
statements divided by total sales volumes in the period. Management considers
operating netback an important measure as it demonstrates its property level
profitability on a unit of production basis. Net debt is the net result of
deducting the Corporation's current assets from its total bank debt and
current liabilities.
    This news release contains certain forward-looking statements, which are
based on OneEx's current internal expectations, estimates, projections,
assumptions and beliefs. Some of the forward-looking statements may be
identified by words such as "expects", "anticipates", "believes", "projects",
"plans" and similar expressions. These statements are not guarantees of future
performance and involve a number of risks and uncertainties, many of which are
beyond One Ex's control. In particular, forward-looking statements included in
this news release include, but are not limited to, statements with respect to
average production and projected exit rate; areas of operations; spending and
increase in capital budget; availability of funds for One Ex's capital
program; the size of, and future net revenues from, reserves; the focus of
capital expenditures; expectations regarding the ability to raise capital and
to continually add to reserves through acquisitions and development;
projections of market prices and costs; the performance characteristics of One
Ex's properties; One Ex's future operating and financial results; capital
expenditure programs; supply and demand for oil and natural gas; average
royalty rates; and amount of general and administrative expenses. In addition,
statements relating to "reserves" or "resources" are deemed to be forward
looking statements, as they involve the implied assessment, based on certain
estimates and assumptions, that the resources and reserves described can be
profitably produced in the future .These forward-looking statements are
subject to numerous risks and uncertainties, certain of which are beyond One
Ex's control, including the effect of acquisitions; changes in general
economic, market and business conditions; changes or fluctuations in
production levels; unexpected drilling results, commodity prices, currency
exchange rates, capital expenditures, reserves or reserves estimates and debt
service requirements; changes to legislation, investment eligibility or
investment criteria; One Ex's ability to comply with current and future
environmental or other laws; One Ex's success at acquisition, exploration and
development of reserves; actions by governmental or regulatory authorities
including increasing taxes, changes in investment or other regulations; the
occurrence of unexpected events involved in the exploration for, and the
operation and development of, oil and gas properties; competition from other
producers; the lack of availability of qualified personnel or management;
changes in income tax laws or changes in tax laws and incentive programs
relating to the oil and gas industry; hazards such as fire, explosion,
blowouts, cratering, and spills, each of which could result in substantial
damage to wells, production facilities, other property and the environment or
in personal injury; stock market volatility; and ability to access sufficient
capital from internal and external sources. Many of these risks and
uncertainties are described in One Ex's Annual Information Form which is
available at www.sedar.com. Readers are also referred to risk factors
described in other documents One Ex files with Canadian securities
authorities. With respect to forward-looking statements contained in this news
release, One Ex has made assumptions regarding: current commodity prices and
royalty regimes; availability of skilled labour; timing and amount of capital
expenditures; future exchange rates; the price of oil and natural gas; the
impact of increasing competition; conditions in general economic and financial
markets; availability of drilling and related equipment; effects of regulation
by governmental agencies; royalty rates and future operating costs. Management
has included the above summary of assumptions and risks related to
forward-looking information provided in this news release in order to provide
shareholders with a more complete perspective on One Ex's future operations
and such information may not be appropriate for other purposes. One Ex'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 of the events anticipated by
the forward-looking statements will transpire or occur, or if any of them do
so, what benefits that the One Ex will derive there from. Readers are
cautioned that the foregoing lists of factors are not exhaustive. These
forward-looking statements are made as of the date of this NEWS RELEASE and
One Ex disclaims any intent or obligation to update publicly any
forward-looking statements, whether as a result of new information, future
events or results or otherwise, other than as required by applicable
securities laws.





For further information:

For further information: Walter Vrataric, President and Chief Executive
Officer, Phone: (403) 781-2752, Fax: (403) 232-8463; Dennis Ward, Vice
President, Finance and Chief Financial Officer, Phone: (403) 781-2756, Fax:
(403) 232-8463

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ONE EXPLORATION INC.

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