Ripper Oil and Gas Inc. releases third quarter results

TSX VENTURE STOCK SYMBOL: RIP

CALGARY, Feb. 25 /CNW/ - Ripper Oil and Gas Inc. (TSX: RIP) ("Ripper" or the "Corporation") presents its third quarter 2009/2010 financial results for the nine months ended December 31, 2009, and operational activities to date. The Corporation has:

    
    -   enjoyed third quarter operating netbacks of $18.23/boe on sales
        averaging $34.63/boe

    -   received natural gas prices averaging $4.36/mcf for the quarter, up
        39% over the second quarter price of $3.14/mcf, and 37% down from the
        price of $6.87/mcf in the third quarter of last year.

    -   more than doubled funds from operations to $391,238 for the third
        quarter, driven by higher natural gas prices in the third quarter as
        compared to the first six months of the current fiscal year.

    -   closed a sale for all of the Corporation's properties in Saskatchewan
        at a price equivalent to proved plus probable at net present value of
        10% as represented in GLJ's independent engineering evaluation
        effective March 31, 2009. The transaction, representing the
        Corporation's highest operating cost properties, resulted in a
        $507,000 decrease in asset retirement obligation.

    -   participated for a minor working interest in two gas wells at Elnora,
        Alberta. The wells came on stream subsequent to the third quarter.

    -   granted a drilling option for $50,000 consideration to an active
        Cardium exploration company, with an election date of May 30, 2010 to
        drill a horizontal test well in Pembina. If the optionee elects to
        drill a well to earn 65% of the Corporation's 67.5% net working
        interest in the 640 gross acres of P&NG rights, the Corporation will
        be carried in the first well for a 23.625% net working interest and
        will have a right to participate, at its own cost, for a 23.625% net
        working interest in any additional wells on the section. The
        Corporation has net working interests between 7 and 45% in 480 gross
        acres of additional Cardium rights at Pembina.

    -   received independent operation notices in Mikwan to drill three 45.7%
        net working interest coal bed methane (CBM) wells. The Corporation
        has elected to participate in the wells which are expected to be
        drilled in the fourth quarter.
    

Outlook

Natural gas prices did recover slightly in the third quarter. This recovery subsequently extended into the fourth quarter; however by mid February, natural gas prices appear to be sliding. Natural gas storage numbers remain historically high and natural gas drilling in the US has recently risen much faster than anticipated, putting downward pressure on natural gas prices.

Ripper plans to minimize capital expenditures and pay down debt when possible until natural gas prices recover. The Corporation currently has 20,595,909 shares outstanding.

Selected Quarterly Information

The following table sets forth certain quarterly financial information of the Corporation for the eight most recent quarters:

    
                                       2010                             2009
                                         Q3         Q2         Q1         Q4

    FINANCIAL HIGHLIGHTS ($000)
    ---------------------------
    Gross Revenue                   1,223.6      922.0      976.7    1,288.1
    Less:
      Royalties                        85.7       92.5       44.2      141.0
      Production costs                444.8      400.8      371.3      478.8
      Transportation costs             48.8       42.4       51.2       52.3
                                   ------------------------------------------
    Operating Netback                 644.2      386.3      510.0      616.0
    Less (add):
      Other income                     (8.3)      (1.3)      (0.1)         0
      G&A                             226.1      190.5      214.2      198.2
      Interest expense                 40.4       29.7       29.0       29.9
      Asset retirement expenditures     0.8        3.1          0       21.0
      Current taxes                    (6.0)         0       (6.8)     (78.9)
                                   ------------------------------------------
    Funds Flow from Operations        391.2      164.3      273.8      445.8
      Per share, basic                 0.02       0.01       0.01       0.02
      Per share, diluted               0.02       0.01       0.01       0.02
    Less (add):
      Change in non-cash working
        capital                      (260.4)      43.9      315.1     (174.2)
                                   ------------------------------------------
    Cash Flow from Operating
     Activities                       651.6      120.4      (41.3)     620.0
                                   ------------------------------------------
    Net Income                       (210.5)    (374.7)    (294.0)    (341.7)
                                   ------------------------------------------
      Per share, basic                (0.01)     (0.02)     (0.01)     (0.02)
      Per share, diluted              (0.01)     (0.02)     (0.01)     (0.02)

    OPERATIONAL HIGHLIGHTS
    ----------------------
    Daily Average Production
      Oil (bbl)                          60         59         60         66
      NGL (bbl)                          14         20         12         18
      Gas (mcf)                       1,861      1,795      1,877      1,972
                                   ------------------------------------------
      Boe (6:1)                         384        378        385        413
    Sales Price
      Oil ($/bbl)                     72.70      65.74      58.17      44.23
      NGL ($/bbl)                     59.67      24.03      44.06      41.90
      Gas ($/mcf)                      4.36       3.14       3.57       5.18
                                   ------------------------------------------
    Average Realized Price ($/boe)    34.63      26.49      27.88      34.29
    Less:
      Royalties ($/boe)                2.43       2.66       1.26       3.75
      Production costs ($/boe)        12.59      11.51      10.60      12.75
      Transportation costs ($/boe)     1.38       1.22       1.46       1.39
                                   ------------------------------------------
    Operating Netback ($/boe)         18.23      11.10      14.56      16.40
    Less:
      G&A ($/boe)                      6.40       5.47       6.11       5.28
      Interest expense ($/boe)         1.14       0.85       0.83       0.80
                                   ------------------------------------------
    Funds Flow from Operations
     ($/boe)                          10.69       4.77       7.62      10.33


                                                                        2008
                                         Q3         Q2         Q1         Q4

    FINANCIAL HIGHLIGHTS ($000)
    ---------------------------
    Gross Revenue                   1,646.6    2,560.9    3,011.2    2,419.8
    Less:
      Royalties                       284.8      455.8      455.6      296.0
      Production costs                529.5      472.2      483.1      646.3
      Transportation costs             46.8       51.0       61.8       49.8
                                   ------------------------------------------
    Operating Netback                 785.5    1,581.9    2,010.7    1,427.8
    Less (add):
      Other income                     (0.1)      (0.8)         0       (1.9)
      G&A                             211.2      234.6      234.8      247.2
      Interest expense                 37.0       56.0       59.6       75.9
      Asset retirement expenditures    17.8       (2.6)     166.4        1.8
      Current taxes                  (186.9)     227.1      377.4      228.1
                                   ------------------------------------------
    Funds Flow from Operations        706.6    1,067.6    1,172.5      876.7
      Per share, basic                 0.03       0.05       0.06       0.04
      Per share, diluted               0.03       0.05       0.06       0.04
    Less (add):
      Change in non-cash working
        capital                       323.6      250.8     (309.0)    (610.0)
                                   ------------------------------------------
    Cash Flow from Operating
     Activities                       383.0      816.8    1,481.5    1,486.7
                                   ------------------------------------------
    Net Income                        (19.0)     382.8      606.5      378.3
                                   ------------------------------------------
      Per share, basic                (0.00)      0.02       0.03       0.02
      Per share, diluted              (0.00)      0.02       0.03       0.02

    OPERATIONAL HIGHLIGHTS
    ----------------------
    Daily Average Production
      Oil (bbl)                          73         82         89         80
      NGL (bbl)                          16         22         12         25
      Gas (mcf)                       1,903      1,984      2,070      2,177
                                   ------------------------------------------
      Boe (6:1)                         407        435        446        469
    Sales Price
      Oil ($/bbl)                     55.14     112.90     116.27      94.36
      NGL ($/bbl)                     47.25     102.58     100.96      63.89
      Gas ($/mcf)                      6.87       8.22      10.40       7.99
                                   ------------------------------------------
    Average Realized Price ($/boe)    43.97      64.02      74.19      56.75
    Less:
      Royalties ($/boe)                7.60      11.39      11.23       6.94
      Production costs ($/boe)        14.14      11.80      11.90      15.16
      Transportation costs ($/boe)     1.25       1.28       1.52       1.17
                                   ------------------------------------------
    Operating Netback ($/boe)         20.98      39.54      49.54      33.48
    Less:
      G&A ($/boe)                      5.64       5.86       5.78       5.80
      Interest expense ($/boe)         0.99       1.40       1.47       1.78
                                   ------------------------------------------
    Funds Flow from Operations
     ($/boe)                          14.35      32.28      42.28      25.90

    Note: columns may not add due to rounding
    

Ripper Oil and Gas Inc. ("RIP") is a publicly traded company on The TSX Venture Exchange. Further information is available on SEDAR at www.sedar.com. BOEs 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 neither approved nor disapproved of the information contained herein.

%SEDAR: 00015775E

SOURCE RIPPER OIL AND GAS INC.

For further information: For further information: Mr. R.G. (Jerry) Ball, President and Chief Executive Officer at (403) 662-2020 or Fax (403) 662-2029; RIPPER OIL AND GAS INC., Suite 1150, 606 - 4 Street S.W., Calgary, Alberta, T2P 1T1

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RIPPER OIL AND GAS INC.

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