Spry announces release of year end financial and operating results



    CALGARY, Oct. 28 /CNW/ - Spry Energy Ltd. is pleased to announce the
release and filing on SEDAR of our financial and operating results for our
fiscal year ended June 30, 2008.

    
    HIGHLIGHTS

    -   On January 15, 2008 we acquired all of the issued and outstanding
        shares of Golden Eagle Energy Inc. ("Golden Eagle") for $13.7 million
        which included Spry's transaction costs. Golden Eagle shareholders
        received a combination of $3.7 million in cash and 1,847,522 common
        shares of Spry.

    -   On June 19, 2008 we acquired all of the issued and outstanding shares
        of Calgas Exploration Ltd. ("Calgas") for cash of $27.8 million which
        included Spry's transaction costs. Spry also assumed $8.6 million in
        bank debt and a working capital surplus of $2.1 million for a total
        net debt of $6.5 million from Calgas.

    -   Cash based expenditures, before corporate acquisitions, for the year
        were $16.5 million as compared to our budget of $15.6 million. The
        increase over our budget was due to the addition of two unbudgeted
        Southeast Saskatchewan wells drilled in late June on lands acquired
        through our corporate acquisitions.

    -   We drilled 19 (15.2 net) wells, that resulted in 9 (8.5 net) natural
        gas wells, 7 (4.2 net) oil wells and 3 (2.5 net) dry holes.

    -   Our year-end proved plus probable reserves increased 83 percent from
        3,146,000 to 5,747,000 boes.

    -   Proved plus probable finding and on-stream costs (including future
        capital) were $22.39 per boe before technical revisions and $23.02
        per boe after technical revisions.

    -   Our average production rate for the fiscal year increased 39 percent
        to 1,357 boes per day, up from 973 boes per day.

    -   Production growth combined with increased commodity prices led to an
        increase in our cash flow of 82 percent to $14.8 million for the
        current fiscal year, as compared to $8.1 million for the previous
        year.

    -   We increased undeveloped land holdings 294 percent to 98,358 net
        acres at June 30, 2008 from 24,945 net acres at June 30, 2007.

    -   We completed three equity financings during the year that raised
        $27.6 million, net of issue costs.

    -   We have approved a base budget for our fiscal year ended June 30,
        2009 with approximately $24 million of planned capital expenditures
        that includes a drilling program of 24 wells of which 20 are planned
        in existing core areas.


                                        Three months  Year ended  Year ended
                                             June 30,    June 30,    June 30,
                                                2008        2008        2007

    Financial
    ($ thousands except per share amounts)
    Petroleum and natural gas revenue         10,393      26,445      15,553
    Funds from operations                      6,327      14,827       8,136
      Basic per share                           0.39        1.01        0.67
      Diluted per share                         0.38        0.98        0.65
    Net earnings                               3,672       3,071       1,210
      Basic per share                           0.23        0.21        0.10
      Diluted per share                         0.22        0.20        0.10
    Capital expenditures, cash based           4,684      16,489      24,534
    Business combinations                     27,823      41,528           -
    Working capital surplus (deficit),
     before bank debt                         (4,688)     (4,688)      1,201
    Bank debt                                  7,480       7,480           -

    Shares outstanding (000s)                 19,812      19,812      12,772
    Weighted average shares
     outstanding (000s)
      Basic                                   16,339      14,705      12,109
      Diluted                                 16,814      15,183      12,543

    Operations
    Reserves, proved plus probable
      Crude oil & liquids (mbbls)                          2,760         791
      Natural gas (mmcf)                                  17,923      14,128
      Total (mboes)                                        5,747       3,146
    Production
      Light/medium oil (bbls/d)                  210         142          97
      Heavy oil (bbls/d)                         241         232         161
      Natural gas (mcf/d)                      6,711       5,900       4,291
      Total (boes/d)                           1,570       1,357         973
    Prices
      Light/medium oil ($/bbl)                113.71       91.62       60.51
      Heavy oil ($/bbl)                        89.45       60.98       41.28
      Natural gas ($/mcf)                      10.18        7.61        7.00
      Total ($/boe)                            72.47       53.07       43.73
    Royalty income ($/boe)                      0.27        0.17        0.08
    Royalties ($/boe)                         (13.03)     (10.05)      (9.28)
    Financial instruments ($/boe)                  -        1.82           -
    Operating expenses ($/boe)                (10.14)     (10.20)      (8.68)
    Transportation expenses ($/boe)            (1.15)      (1.23)      (1.23)
    General & administrative expenses,
     cash based ($/boe)                        (3.98)      (3.84)      (2.32)
    Interest income, net ($/boe)                0.08        0.28        0.78
    Cash taxes ($/boe)                         (0.24)      (0.18)      (0.16)
    Cash flow netback ($/boe)                  44.28       29.84       22.92
    


    Our year-end consolidated financial statements and Management's
Discussion and Analysis have been filed on SEDAR. These documents, along with
a complete copy of our annual report for the year ended June 30, 2008 can be
found on the SEDAR website at www.sedar.com





For further information:

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

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