Q2 Exploration Success Drives Growth Plans for Great Plains



    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO
    ANY UNITED STATES NEWS SERVICES/
    

    CALGARY, Aug. 14 /CNW/ - Great Plains Exploration Inc. (TSX - GPX) (Great
Plains) is pleased to announce its financial and operational results for the
three and six months ended June 30, 2008.

    
    The highlights for the second quarter 2008 are as follows:

    -   Participated in the drilling of a second light oil discovery located
        in 9-01-50-6W5 at the Company's Crossfire project in West Pembina,
        Alberta. The 9-1 well encountered 18m of pay and recently tested at
        over 1,000 boe/d. Great Plains will have a 17.5% interest in the
        production of this well which is expected to commence by October
        2008.

    -   Executed on its corporate strategy of growth through acquisitions
        with the successful take over of RedStar Oil and Gas which has
        diversified Great Plains operations into northeast BC, a core area
        with operatorship, high working interest and access to
        infrastructure.

    -   Expanded and increased the Company's control position in its core
        area of Randell in central Alberta, through the purchase of
        additional production, land and facility interests for $810 thousand.

    -   Increased cash flow 60% to $4.9 million ($0.07 per share) for the
        quarter. Cash flow netbacks increased 47% to $36.75 per boe as a
        result of higher commodity prices and a 20% reduction in operating
        costs on a per unit basis.

    -   Production averaged 1,472 boe/d for the second quarter, noting that
        additional volumes from the RedStar transaction were only reflected
        for approximately two months out of the period. Production was lower
        than anticipated primarily due to one RedStar well achieving payout
        that resulted in 1,000 mcf/d of production reverting to the farmor
        and two wells watering out resulting in a reduction of 240 mcf/d. In
        addition, there were mechanical breakdowns at Randell causing a loss
        of approximately 75 boe/d, which are expected to be repaired by the
        fourth quarter.
    

    Outlook
    -------
    The RedStar assets have now been fully integrated into Great Plains and
the Company's technical team has assessed and prioritized the combined
entities' prospect inventory. As such, Great Plains anticipates an active
winter drilling program with an $18 million capital expenditure budget through
the first quarter of 2009, focused on light oil in Alberta and natural gas in
NE BC.
    At Pembina/Crossfire, the second successful discovery at 9-1, in June
2008, continues to confirm the presence of large accumulations of light oil in
this area. Great Plains will be actively involved in the development of the
9-1 discovery with its industry partner and expects two to three additional
wells to be drilled over the winter. In addition, Great Plains has a minimum
40% working interest in several Nisku prospects adjacent to and up-dip of 9-1
which the Company anticipates will be drilled in the coming year. Great Plains
will continue to focus its resources at Pembina/Crossfire as management
believes this area provides the opportunity for significant per share growth
for shareholders.
    Great Plains is planning a minimum of three wells this winter in NE BC
targeting natural gas from the Debolt, Bluesky and Keg River formations. In
addition, through the assessment of the extensive seismic database in this
area, Great Plains' technical team is also bringing several additional
locations to drillable status. At Gordondale, Great Plains is planning a
minimum of two step-out locations to follow-up the recent oil discovery. At
Randell, Great Plains has acquired additional 3-D seismic and has augmented
its light oil drilling inventory with a minimum of three wells to be drilled
this winter. Finally, Great Plains has recently acquired additional 3-D
seismic at Morinville which will be used to evaluate new prospects beyond the
two to three currently identified drilling opportunities targeting Leduc light
oil.

    On behalf of the Board of Directors,

    (Signed)"Stephen P. Gibson"

    Stephen P. Gibson
    President and CEO
    August 14, 2008

    
    Investors should note that boes may be misleading, particularly if used
    in isolation. A boe conversion rate of 6 Mcf: 1bbl is based on an energy
    equivalency conversion method primarily applicable at the burner tip and
    does not represent a value equivalency at the wellhead.
    

    Advisory Regarding Forward Looking Statements

    This press release contains forward-looking statements which include, but
are not limited to: operations plans and outlook, expectations, opinions,
forecasts, projections, guidance or other statements that are not statements
of fact. Although the Company believes that the expectations reflected in such
forward-looking statements are reasonable, it cannot give any assurance that
such expectations will prove to be correct. Results of the Company may be
affected by a variety of variables and risks associated with oil and gas
exploration, production and transportation, such as loss of market, volatility
of oil and gas prices, currency fluctuations, imprecision of reserve
estimates, environmental risks, competition from other producers, ability to
access sufficient debt and equity capital from internal and external sources,
ability to replace and expand oil and gas reserves, ability to generate
sufficient cash flow from operations to meet its current and future
obligations, and risks associated with existing and potential future lawsuits
and regulatory actions made against the Company; as a consequence, actual
results could differ materially from those anticipated or implied in the
forward-looking statements.
    The Company's forward-looking statements are expressly qualified in their
entirety by this cautionary statement and are made as of the date of this new
release. Unless otherwise required by applicable securities laws, the Company
does not intend nor does it undertake any obligation to update or review any
forward-looking statements to reflect subsequent information, event, results
or circumstances or otherwise.


    
    FINANCIAL & OPERATIONAL HIGHLIGHTS

    -------------------------------------------------------------------------
                               Three     Three               Three
    ($000s except per         Months    Months              Months
     unit amounts)             Ended     Ended               Ended
                             June 30   June 30         %  March 31         %
                                2008      2007    Change      2008    Change
    -------------------------------------------------------------------------

    Oil and gas sales          9,832     7,106        38     7,201        37
    Funds flow                 4,921     3,085        60     3,599        37
      Per share (basic)         0.07      0.06        17      0.07         0
    Net earnings (loss)       (1,354)     (256)      429    (1,078)       26
      Per share
       (basic and diluted)     (0.02)    (0.01)      100     (0.02)        0
    Capital expenditures,
     net of dispositions       3,169    (2,039)      n/a     5,501       (42)
    Bank debt and working
     capital deficit          16,091    12,378        30    18,157       (11)
    Common shares outstand.
     (000s) basic             82,748    47,625        74    50,554        64
    -------------------------------------------------------------------------
    Production
      Crude oil (bbls/d)         530       615       (14)      625       (15)
      NGLs (bbls/d)               34        45       (24)       31        10
      Natural gas (mcf/d)      5,351     4,196        28     2,478       116
    -------------------------------------------------------------------------
      Total (boe/d)            1,472     1,359         8     1,069        38

    Realizations
      Crude oil ($/bbl)       101.29     69.61        46     89.55        13
      NGLs ($/bbl)            100.07     59.51        68     70.31        42
      Natural gas ($/mcf)       9.30      7.66        21      8.47        10
    -------------------------------------------------------------------------
      Average ($/boe)          73.41     57.11        29     74.03        (1)

    Netbacks ($/boe)
      Oil and gas sales        73.41     57.11        29     74.03        (1)
      Royalties, net of ARTC  (15.09)    (8.69)       74    (12.89)       17
      Operating and
       processing expenses    (12.10)   (15.22)      (20)   (15.00)      (19)
      Transportation           (2.67)    (1.02)      162     (1.30)      105
      Asset retirement
       expenditures            (0.40)    (1.35)      (70)    (0.09)      344
    -------------------------------------------------------------------------
      Operating netback        43.15     30.83        40     44.75        (4)
      Processing and other
       income                   1.22      1.95       (37)     2.86       (57)
      General and
       administrative          (5.69)    (5.72)       (1)    (6.51)      (13)
      Interest                 (1.85)    (1.61)       15     (4.03)      (54)
      Current taxes (expense)  (0.08)    (0.51)      (84)    (0.07)       14
    -------------------------------------------------------------------------
      Cash flow netback        36.75     24.94        47     37.00        (1)
    -------------------------------------------------------------------------
    

    The complete interim financial statements and corresponding MD&A
documents are available on SEDAR at www.sedar.com and on the Great Plains
website at www.greatplainsexp.com.

    %SEDAR: 00020740E




For further information:

For further information: Great Plains Exploration Inc., Stephen P.
Gibson, President & CEO; Sean Bovingdon, VP Finance & CFO, Tel: (403)
262-9620, Fax: (403) 262-9622, Website: www.greatplainsexp.com, Email:
info@greatplainsexp.com

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