Spitfire Energy Earns $250,000 on Record Cash Flow in Fiscal 2009



    CALGARY, June 29 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) increased its
average production 4% to 317 boe per day, oil and gas revenues 20% to $7.2
million and cash flow from operations 32% to $ 2.7 million for the fiscal year
ending March 31, 2009.
    The following table provides a summary of Spitfire's results for the
12-month period ending March 31, 2009 and 2008.

    
    -------------------------------------------------------------------------
                                                 Year Ended March 31
    -------------------------------------------------------------------------
                                            2009         2008       % change
    -------------------------------------------------------------------------
    Financial
    -------------------------------------------------------------------------
    Petroleum and natural gas sales
    -------------------------------------------------------------------------
      Crude oil and NGLs              $5,749,019   $4,904,825             17
    -------------------------------------------------------------------------
      Natural gas                     $1,422,059   $1,065,679             33
    -------------------------------------------------------------------------
    Net revenue                       $7,171,078   $5,970,504             20
    -------------------------------------------------------------------------
    Cash flow from operations         $2,677,480   $2,021,212             32
    -------------------------------------------------------------------------
      Per share basic and diluted          $0.07        $0.04             75
    -------------------------------------------------------------------------
    Net earnings (loss)                 $249,979     $211,851             18
    -------------------------------------------------------------------------
      Per share basic and diluted          $0.01        $0.01              -
    -------------------------------------------------------------------------
    Capital expenditures              $6,694,411   $3,060,872            119
    -------------------------------------------------------------------------
    Net debt                          $5,857,095   $1,725,314            239
    -------------------------------------------------------------------------
    Total assets                     $24,426,569  $20,080,331             22
    -------------------------------------------------------------------------
    Shareholders equity (deficit)      ($828,480) ($1,078,459)            23
    -------------------------------------------------------------------------
    Weighted average outstanding      40,833,887   38,247,744              7
    -------------------------------------------------------------------------
    Common shares outstanding         40,265,582   41,246,244             -2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Operating
    -------------------------------------------------------------------------
    Realized prices
    -------------------------------------------------------------------------
      Crude oil and NGLs ($/bbl)          $71.66       $58.81             22
    -------------------------------------------------------------------------
      Natural gas ($/mcf)                  $6.69        $6.24              7
    -------------------------------------------------------------------------
    Total ($/boe)                         $62.01       $53.46             16
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Average production
    -------------------------------------------------------------------------
      Crude oil and NGLs (bbls/d)            220          229             -4
    -------------------------------------------------------------------------
      Natural gas (mcf/d)                    582          468             24
    -------------------------------------------------------------------------
    Total (boed)                             317          306              4
    -------------------------------------------------------------------------


    -------------------------------------------------------------------------
    Reserves                                 BOE        PV 5%         PV 10%
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Fiscal 2009
    -------------------------------------------------------------------------
    Forecast Pricing (GLJ April 1, 2009)
    -------------------------------------------------------------------------
      Total proved                     1,266,000  $25,508,000    $18,896,000
    -------------------------------------------------------------------------
      Total proved plus probable       2,034,000  $40,620,000    $28,056,000
    -------------------------------------------------------------------------
    Reserve Life Index - 12.0 years (P+P)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Fiscal 2008
    -------------------------------------------------------------------------
    Forecast Pricing (GLJ April 1, 2008)
    -------------------------------------------------------------------------
      Total proved                     1,215,000  $24,575,000    $19,114,000
    -------------------------------------------------------------------------
      Total proved plus probable       2,028,000  $39,689,000    $28,461,000
    -------------------------------------------------------------------------
    Reserve Life Index - 12.1 years (P+P)
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    Price Assumptions                             Natural Gas      Crude Oil
    (GLJ April 1, 2009)                      (NYMEX $US/mmbtu)  (WTI $US/bbl)
    -------------------------------------------------------------------------
    2009 (full year)                                    $4.68         $51.91
    -------------------------------------------------------------------------
    2010                                                $6.50         $62.00
    -------------------------------------------------------------------------
    2011                                                $7.25         $70.00
    -------------------------------------------------------------------------
    2012                                                $7.75         $77.00
    -------------------------------------------------------------------------
    2013                                                $8.25         $85.00
    -------------------------------------------------------------------------
    

    In fiscal 2010, the capital spending budget will be dependent upon
forecasted cash flows, commodity prices and service costs. The Company will
focus on lower risk projects and acquisitions that provide sound economic
returns. The Company is currently planning to drill three (1.5 net)
development wells with a total estimated capital budget of $2 million.
Spitfire will continually manage the capital budget working within fiscal 2010
cash flows.
    Spitfire also announces that independent director John Gunton has
resigned his directorship effective June 25, 2009. The Company would like to
thank John for the valuable contribution he has made to Spitfire as a director
and wishes him every success in future endeavors.
    Spitfire's audited financial statements, management's discussion and
analysis and detailed information regarding Spitfire's reserves for the fiscal
year ended March 31, 2009 have been electronically filed and can be accessed
on SEDAR at www.sedar.com and on the company website at
www.spitfireenergy.com.

    Spitfire Energy Ltd. is a junior oil and gas company engaged in the
exploration, development and production of natural gas and crude oil reserves.
Spitfire's common shares trade on the TSX Venture Exchange under the symbol
"SEL".

    This press release contains forward-looking statements that are based on
current expectations. There are a number of risks and uncertainties associated
with the oil and gas industry that could cause actual results to differ
materially from those anticipated. A barrel of oil equivalent, derived by
converting gas to oil using a ratio of six thousand cubic feet of gas to one
barrel of oil, may be misleading, particularly if used in isolation. A boe
conversion 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 does not accept responsibility for the adequacy
    or accuracy of the contents of this press release.
    

    %SEDAR: 00016881E




For further information:

For further information: Danny Zivkusic, Chief Financial Officer, (403)
205-3400 x228

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SPITFIRE ENERGY LTD.

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