One Exploration Inc. announces second quarter 2008 results and increased capital budget



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

    CALGARY, Aug. 22 /CNW/ - One Exploration Inc. (the "Corporation" or
"OneEx") is pleased to report its financial and operating results for the
three and six month periods ended June 30, 2008 and provide an update on its
current operations.

    
    Notable second quarter highlights include:

    -   Average production increased 15 percent to 950 boe per day for the
        second quarter of 2008 compared with 828 boe per day for the first
        quarter of 2008. This represents an increase of 608 boe per day, or
        178 percent over the 342 boe per day realized in the second quarter
        of 2007.

    -   Daily production per million diluted shares outstanding increased to
        27 boe per day for the second quarter of 2008 from 23 boe per day for
        the first quarter of 2008 and 12 boe per day for the second quarter
        of 2007.

    -   Funds from operations increased 222 percent to $2.9 million for the
        second quarter of 2008 compared with $0.9 million for the first
        quarter of 2008.

    -   Operating netbacks for the second quarter of 2008 were $41.90 per
        boe, an increase of 132 percent over the $18.03 per boe realized in
        the second quarter of 2007 and an increase of 103 percent over the
        $20.63 per boe realized in the first quarter of 2008.

    -   Capital spending totaled $2.1 million for the three months and
        $6.6 million for the six months ended June 30, 2008.

    -   Net debt decreased nine percent to $7.0 million at June 30, 2008
        compared to $7.7 million at March 31, 2008.

    -   OneEx has approximately 48,000 net acres of undeveloped lands and tax
        pools in excess of $94 million.

    The terms "funds from operations", "operating netback" and "net debt"
should be used in conjunction with the non-GAAP measures cautionary language
contained in this news release.

    Financial and Operating Summary

                         Three months ended June 30  Six months ended June 30
    -------------------------------------------------------------------------
                               2008         2007         2008         2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Financial
     highlights ($)

    Petroleum and
     natural gas sales   6,140,398     1,294,328    10,188,615     1,566,324

    Net earnings (loss)    547,025      (794,569)    1,298,212     2,335,260

    Net earnings (loss)
     per share(i)

      - basic                 0.02         (0.03)         0.04          0.09

      - diluted               0.02         (0.03)         0.04          0.09

    Cash flow            2,896,071        79,980     3,795,041      (113,588)

    Cash flow per
     share(i)

      - basic                 0.08          0.00          0.11         (0.00)

      - diluted               0.08          0.00          0.11         (0.00)

    Working capital
     (deficit) at
     period end         (7,021,306)    4,950,997    (7,021,306)    4,950,997

    Capital
     expenditures
     (excluding
     corporate
     acquisitions)       2,115,645    11,378,831     6,676,262    17,031,152

    Operating

    Production

      Natural gas (mcf
       per day)              4,479         2,010         4,233         1,197

      Crude oil and
       NGLs (bbls per
       day)                    204             7           185             5

      BOE per day (6:1)        950           342           889           205

    Average realized price

      Natural gas ($ per
       mcf)                  10.64          6.89          9.43          6.96

      Crude oil and NGLs
       ($ per bbl)           93.37         53.68         84.91         60.00

      BOE ($ per boe, 6:1)   71.02         41.60         62.95         42.23

    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (i) Class B common shares are converted to Class A common shares using a
        ratio of $10 divided by the greater of the period end Class A common
        share price and $1. For periods ended June 30, 2008, Class B common
        shares were converted using a Class A common share price of $1.47.
        For periods ended June 30, 2007, Class B common shares were converted
        using a Class A common share price of $1.20.
    

    Financial Performance
    ---------------------
    Funds from operations in the quarter were $2.9 million (three months
ended June 30, 2007 - $79,980) or $0.08 (three months ended June 30, 2007 -
$0.00) per diluted share. Net debt totalled $7.0 million at June 30, 2008, a
9 percent decrease from March 31, 2008 net debt of $7.7 million.

    Operational Performance
    -----------------------
    Production increased to 950 boe per day in the second quarter, a
15 percent increase over the first quarter of 2008. The increase in production
was attributable to new wells tied-in and increased production from the
Central Alberta region. OneEx also generated strong netbacks of $41.90 per boe
for the second quarter of 2008 compared to $20.63 per boe for the first
quarter of 2008 as commodity pricing increased significantly and operating
costs and royalties decreased.

    Outlook
    -------
    The Corporation currently forecasts annual average production of 900 -
1,000 boe per day with a projected exit rate of 1,000-1,100 boe per day based
on a $13.5 million capital program for the year.
    The Corporation plans to conduct the following operations in its Central
and Southeast Alberta areas in the third and fourth quarters of 2008 as
outlined in the table below:

    
                                          Drilling  Completions      Tie-Ins
                                              (net)        (net)        (net)
                                         ------------------------------------
    Central Alberta                         5 (2.3)     10 (6.4)      9 (5.0)

    Southeast Alberta                       4 (3.3)      4 (3.3)      4 (3.3)

    Other                                        -       1 (0.5)           -
    -------------------------------------------------------------------------
    Total                                   9 (5.6)    15 (10.2)     13 (8.3)
    -------------------------------------------------------------------------
    

    The Corporation forecasts capital spending of approximately $10.3 million
for the nine months ended September 30, 2008. The Board of Directors has
approved an increase in the 2008 annual capital budget to $13.5 million.
Approximately 15 percent of the $13.5 million in approved capital spending
relates to land acquisitions; approximately 60 percent relates to drilling and
completions with the balance for facilities and tie-ins.
    OneEx maintains a large inventory of prospects and opportunities ranging
from lower risk recompletions and tie-ins to higher impact exploration
drilling. The ability to high grade opportunities and time each operation
based on either commodity pricing or risk tolerance places the Corporation in
an advantageous position to demonstrate meaningful growth to our shareholders.
The Corporation regularly updates its Corporate Presentation on its website at
www.one-ex.ca.


    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.

    
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news 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 press 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 OneEx's control. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause OneEx's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do, what benefits OneEx will derive from them. The
risks and uncertainties associated with the forward-looking statements
included in this news release include, among other things, 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; OneEx's ability to comply with current and future
environmental or other laws; OneEx's success at acquisition, exploration and
development of reserves; actions by governmental or regulatory authorities
including increasing taxes, changes in investment or other regulations; and
the occurrence of unexpected events involved in the exploration for, and the
operation and development of, oil and gas properties. Many of these risks and
uncertainties are described in OneEx's Annual Information Form which is
available at www.sedar.com. Readers are also referred to risk factors
described in other documents OneEx files with Canadian securities authorities.
Copies of these documents are available without charge from the Corporation.
Except as required by applicable law, the Corporation disclaims any
responsibility to update these forward-looking statements.





For further information:

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

Organization Profile

ONE EXPLORATION INC.

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