Titan Announces Agreement to Swap Assets in Northern Alberta For $22.25 million Cash Plus Producing Interests in Titan's Core Areas



    CALGARY, June 25 /CNW/ - Titan Exploration Ltd., (TTN.A, TTN.B - TSX)
("Titan" or the "Company"), is pleased to announce that it has entered into an
agreement to swap certain of its assets in northern Alberta (the "W5M Assets")
for total proceeds consisting of $22.25 million cash plus certain producing
interests in Titan's core areas of Pouce Coupe, Alberta and Eastbrook,
Saskatchewan. The transaction is expected to close in late July, with an April
1, 2007 effective date.

    Operational, Financial and Strategic Benefits of the Swap

    Titan believes that the swap provides a number of operational, financial
and strategic benefits to Titan, including:

    
        -  The swap, in conjunction with the recently announced $10 million
           equity offering, will inject financial strength and flexibility
           into Titan's balance sheet. Estimated net debt at the end of May,
           pro forma the completion of the swap and the closing of the
           private placement, is $17 million, resulting in a net debt to
           anticipated 2007 cash flow ratio of under 1.0 times. Following the
           swap, Titan's bank line will be $39 million, leaving over $22 
           million of available debt capacity. A stronger balance sheet will
           enable Titan to once again pursue growth through a combination of
           strategic acquisitions and grass roots exploration.

        -  Titan will consolidate its working interest and add to its
           drilling inventory on a net basis in two of its key operational
           areas. At Pouce Coupe, in conjunction with another recent
           acquisition, Titan will increase its average working interest in
           key sections to approximately 84%. At Eastbrook, Titan's average
           working interest across the main pool will increase to 86%. Both
           Eastbrook and Pouce Coupe figure prominently in Titan's future
           development plans.

        -  Management believes that this is an opportune time to
           crystallize the value that has been created in the W5M Assets.
           Highly successful, the W5M Assets have generated a return on
           investment of approximately 40% over the 21 months that Titan
           owned the asset. Titan will seek to deploy a portion of the funds
           generated from the disposition into projects that are better
           aligned with our corporate exploration strategy.

    Characteristics of Titan Following Closing of Swap

    Following the closing of the private placement and the strategic swap,
Titan will have the following characteristics:

        -  Production of more than 1,775 boe/d;

        -  Reserves of 4,308 mboe (proven) and 7,122 mboe (proven plus
           probable effective December 31, 2006, based upon Titan's year end
           independent reserves evaluation pro rated to account for the
           disposition of the W5M Assets and the incremental reserves
           attributable to the interests acquired at Pouce Coupe and
           Eastbrook), with an 8.9 year proved plus probable RLI (based upon
           an average 2007 production rate of 2,186 boe/d);

        -  Net debt of approximately $17 million (est. May 31, 2007) on a
           $39 million lending facility, resulting in a net debt to
           anticipated 2007 cash flow ratio of under 1.0 times;

        -  28,882,572 Class A Shares and 1,012,500 Class B Shares
           outstanding;

        -  approximately 68,000 net undeveloped acres of land, in two
           concentrated core areas in the Peace River Arch and southwest
           Saskatchewan; and

        -  a drilling inventory in excess of 80 locations.

    
    Revised Guidance

    Titan is revising its 2007 guidance to reflect the strategic swap. In the
current market environment, Titan is committed to maintaining a capital budget
that is in line with the Company's cash flow. Under this scenario, Titan is
forecasting 2007 exit rate production in excess of 2,000 boe/d and annualized
cash flow of approximately $18 million (based upon WTI US$65.00, Cdn. $7.50
AECO and US$/Cdn$ of 0.92). With a strong balance sheet, Titan will be well
positioned to react to opportunities as the year progresses and, when
warranted, will seek to expand its capital program through increased drilling
and strategic acquisitions.

    Normal Course Issuer Bid

    The Board of Directors believes that the current trading price of the
Company's Class A Shares is not representative of the Company's underlying
value. As such, the Board of Directors announces that, subject to receipt of
TSX approval, it intends to commence a normal course issuer bid, pursuant to
which Titan may acquire up to the greater of 5% of Titan's outstanding Class A
Shares or 10% of Titan's public float over the next 12 months. Titan is not
obligated to repurchase any Class A Shares, however, from time to time the
trading price of the Company's Class A Shares may represent an attractive
opportunity to realize additional shareholder value and the Board of Directors
believes that purchases of Class A Shares at such times would be an
appropriate and desirable use of a portion of Titan's available funds.

    New Appointments

    Mr. Trevor Spagrud, CEO of Titan is pleased to announce a change in title
to the following members of Titan's management team. Mr. Richard F. McHardy,
previously the Company's Vice President Finance and Chief Financial Officer,
will assume the title of President. Mr. Spagrud, will remain as Chief
Executive Officer. Ms. Michelle Wiggins, currently the Company's Controller,
will assume the office of Vice President, Finance and Chief Financial Officer.
Mr. Albert Stark, currently the Company's Vice President, Engineering, will
assume the additional title of Chief Operating Officer. These changes are
necessary to align titles with the duties and responsibilities already being
fulfilled by these individuals. Mr. Stark takes over the role of Chief
Operating Officer from Mr. Bob Nickolson, who has retired from the Company due
to personal reasons. Management and the Board of Titan wish to thank Mr.
Nickolson for his contribution to Titan and wish him all the best in the
future. All of these appointments are effective immediately.

    Titan Exploration Ltd. is an independent, Alberta-based, junior oil and
gas company engaged in the exploration for, and development and production of,
natural gas and crude oil reserves in western Canada. Titan's areas of focus
include northeast British Columbia, the Peace River Arch area of northwest
Alberta and southwest Saskatchewan. Its Class A and Class B shares trade on
the Toronto Stock Exchange under the symbols "TTN.A" and "TTN.B",
respectively.

    Forward-Looking Statements - Certain information set forth in this
document, including management's assessment of Titan's future plans and
operations, contains forward-looking statements. When used in this document,
the words "anticipate," "believe," "estimate," "expect," "intend," "may,"
"project," "plan", "will", "should" and similar expressions are intended to be
among the statements that identify forward-looking statements. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties, many of which are beyond Titan's control, including the impact
of general economic conditions, industry conditions, volatility of commodity
prices, currency fluctuations, imprecision of reserve estimates, environmental
risks, competition from other industry participants, the lack of availability
of qualified personnel or management, stock market volatility and ability to
access sufficient capital from internal and external sources. Readers are
cautioned that the assumptions used in the preparation of such information,
although considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on forward-looking
statements. Titan's actual results, performance or achievement could differ
materially from those expressed in, or implied by, these forward-looking
statements. No assurance can be given that any of the events anticipated will
transpire or occur, or if any of them do so, what benefits Titan will derive
from them. Titan disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
    Oil equivalent amounts have been calculated using a conversion rate of
six thousand cubic feet of natural gas to one barrel of oil. 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 TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT
    RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.





For further information:

For further information: Trevor Spagrud, Chief Executive Officer, Titan
Exploration Ltd., Telephone: (403) 313-8590, Facsimilie: (403) 313-8591,
www.titanexploration.ca; Richard F. McHardy, President, Titan Exploration
Ltd., Telephone: (403) 313-8590, Facsimilie: (403) 313-8591,
www.titanexploration.ca

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TITAN EXPLORATION LTD.

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