Spry announces first quarter financial and operating results



    CALGARY, Nov. 29 /CNW/ - Spry Energy Ltd. is pleased to announce our
financial and operating results for our first quarter ended September 30,
2007.

    HIGHLIGHTS

    
    -   Production rates for the quarter averaged 1,212 boes per day, an
        increase of 86 percent over production rates for the same quarter
        ended in 2006.

    -   Funds from operations increased 52 percent to $2,134,000 compared to
        the same period last year primarily due to the increase in production
        volumes.

    -   We recorded a net loss of $292,000 for the quarter versus net
        earnings of $219,000 for the same period in 2006. Lower commodity
        prices and higher royalties and expenses were the contributing
        factors.

    -   We drilled two (1.0 net) wells during the quarter that resulted in
        one (0.5 net) gas well which was placed on-stream in early November
        2007 and, one (0.5 net) well that was dry and abandoned. Subsequent
        to September 30, 2007, we have drilled an additional six (5.5 net)
        wells that have resulted in four (4.0 net) potential gas wells and
        two (1.5 net) heavy oil wells.

    -   We commenced construction of a 10 mmcf per day gas plant at Killam
        which is expected to be on-stream in early 2008.

    -   We closed a $5.4 million private placement financing in August,
        issuing 1,026,356 common shares at $5.30 per share.

    -   Subsequent to the end of the quarter, we announced an agreement to
        purchase a private company for approximately $13.5 million that will
        add 275 boes per day of production and 34,000 net acres of
        undeveloped lands to Spry.


                                                      Three months ended
                                                 September 30,  September 30,
                                                         2007           2006
    Financial
    ($ thousands except per share amounts)
    Petroleum and natural gas revenue                   4,058          2,513
    Funds from operations                               2,134          1,405
      Basic per share                                    0.16           0.12
    Net earnings (loss)                                  (292)           219
      Basic and diluted per share                       (0.02)          0.02
    Capital expenditures, cash based                    2,969          5,291
    Working capital surplus                             5,763          8,127
    Shares outstanding (000s)                          13,828         11,829



                                                      Three months ended
                                                 September 30,  September 30,
                                                         2007           2006
    Operations
    Production
      Natural gas (mcf/d)                               5,476          2,584
      Light and medium oil (bbls/d)                        96             91
      Heavy oil (bbls/d)                                  204            131
      Total (boes/d)                                    1,212            652
    Prices
      Natural gas ($/mcf)                                5.19           5.64
      Light and medium oil ($/bbl)                      69.39          67.36
      Heavy oil ($/bbl)                                 43.72          50.18
      Total ($/boe)                                     36.29          41.77
    Royalty income ($/boe)                               0.09           0.10
    Financial instrument settlements ($/boe)             5.51          (0.25)
    Royalties ($/boe)                                   (7.90)         (7.48)
    Operating expenses ($/boe)                          (9.57)         (8.48)
    Transportation expenses ($/boe)                     (1.29)         (1.22)
    General & administrative expenses,
     cash based ($/boe)                                 (4.25)         (3.03)
    Interest income ($/boe)                              0.39           2.30
    Cash taxes ($/boe)                                  (0.14)         (0.30)
    Funds from operations ($/boe)                       19.13          23.41
    

    A complete copy of the interim report for the three months ended
September 30, 2007 along with the CEO and CFO certifications of interim
filings can be found on the SEDAR website at www.sedar.com

    %SEDAR: 00018775E




For further information:

For further information: Kenneth J. Bowie, President & CEO, (403)
265-7770, extension 230

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SPRY ENERGY LTD.

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