Spry announces second quarter financial and operating results



    CALGARY, Feb. 26 /CNW/ - Spry Energy Ltd. is pleased to announce our
financial and operating results for our second quarter ended December 31,
2008.

    HIGHLIGHTS

    
    -   Production rates for the quarter averaged 1,776 boes per day, an
        increase of 51 percent over production rates for the same quarter
        ended in 2007.

    -   Funds from operations increased 118 percent to $5,294,000 compared to
        the same period last year due to the increase in production volumes
        and realized gains on financial instruments.

    -   We recorded net earnings of $2,519,000 for the quarter versus
        $269,000 for the same period in 2007. Higher operating income along
        with realized and unrealized financial instrument gains contributed
        to the increase.

    -   We drilled five (3.8 net) wells during the quarter resulting in three
        (1.8 net) oil wells, one (1.0 net) natural gas well and one (1.0 net)
        potential natural gas well. The oil wells were placed on production
        during the quarter and we also placed six new gas wells on-stream.

    -   Our credit facility with our banker was increased on November 24,
        2008 to $30 million.

                                                       Three months ended
                                                   December 31,  December 31,
                                                          2008          2007
    Financial
    ($ thousands except per share amounts)
    Petroleum and natural gas revenue                    7,219         4,466
    Funds from operations                                5,294         2,430
      Basic per share                                     0.27          0.18
      Diluted per share                                   0.26          0.18
    Net income                                           2,519           269
      Basic per share                                     0.13          0.02
      Diluted per share                                   0.12          0.02
    Capital expenditures, cash based                     5,155         5,392
    Working capital surplus (deficit), excluding
     bank debt                                            (380)        2,584
    Bank debt                                           (8,484)            -
    Shares outstanding at end of period (000s)          19,892        13,828
    Operations
    Production
      Natural gas (mcf/d)                                6,214         5,078
      Light and medium oil (bbls/d)                        473            93
      Heavy oil (bbls/d)                                   268           235
      Total (boes/d)                                     1,776         1,175
    Prices
      Natural gas ($/mcf)                                 6.79          6.23
      Light and medium oil ($/bbl)                       54.59         73.20
      Heavy oil ($/bbl)                                  38.71         42.28
      Total ($/boe)                                      44.14         41.22
    Royalty income ($/boe)                                0.04          0.11
    Realized financial instrument gains ($/boe)          15.08          2.54
    Royalties ($/boe)                                    (7.89)        (8.40)
    Operating expenses ($/boe)                          (13.46)        (9.42)
    Transportation expenses ($/boe)                      (1.29)        (1.28)
    General & administrative expenses,
     cash based ($/boe)                                  (3.68)        (2.96)
    Interest income (expense) ($/boe)                    (0.67)         0.68
    Foreign exchange gain ($/boe)                         0.13             -
    Funds from operations ($/boe)                        32.40         22.49
    

    A complete copy of the interim report for the three and six months ended
December 31, 2008 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)
984-6352

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SPRY ENERGY LTD.

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