Titan Exploration Ltd. announces financial and operating results for the quarter ending September 30, 2007



    CALGARY, Nov. 14 /CNW/ - Titan Exploration Ltd., (TTN.A, TTN.B - TSX)
("Titan" or the "Company"), is pleased to report its operating results and the
filing of its unaudited interim consolidated financial statements and related
management discussion and analysis ("MD&A") for the three and nine months
ended September 30, 2007. Select operational and financial results are
outlined below and should be read in conjunction with the Company's unaudited
interim consolidated financial statements and related MD&A which can be found
on the Company's website at www.titanexploration.ca or on SEDAR at
www.sedar.com.

    
    Highlights
    ----------
    Highlights of the quarter include:

    -   completing the sale of our Seal, Alberta property on July 26, 2007
        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;

    -   producing an average of 2,150 boe/d for the quarter, generating cash
        flow of $4.75 million or $0.14 per share;

    -   realizing an operating netback of $30.76 per boe; and

    -   reducing net debt to less than $17.6 million (excluding unrealized
        hedging losses), which is less than one times annualized third
        quarter cash flow.

    Subsequent to the end of the quarter Titan:

    -   announced that the Corporation had entered into a Pre-Acquisition
        Agreement with Canetic Resources Trust ("Canetic") whereby Canetic
        will make a takeover offer to acquire all the issued and outstanding
        shares of the Corporation in exchange for 0.1917 of a Canetic trust
        unit (a "Trust Unit") for each Titan Class A Share and 0.6609 of a
        Trust Unit for each Titan Class B Share.

    Financial Highlights
    --------------------

                                        Three Months Ended
                                    September 30, September 30,
                                        2007          2006        % Change
    -------------------------------------------------------------------------

    Petroleum and natural gas sales  $10,747,892   $14,126,889           -24%

    Net earnings (loss)              $  (485,981)  $ 1,948,939

    Net earnings (loss) per share
     (Class A and Class B)           $     (0.01)  $      0.07

    Cash flow from operations(1)     $ 4,752,845   $ 7,394,505           -36%

    Cash flow per share (Class A
     and Class B)                    $      0.14   $      0.27           -48%

    Capital expenditures
     (including acquisitions)        $ 6,120,826   $12,407,523           -50%

    Net debt, including working
     capital deficiency but
     excluding unrealized hedging
     losses(2)                       $17,576,125   $39,641,469           -56%

    Average Daily Production
      Oil (bbl/d)                          1,437         1,913
      Gas (mcf/d)                          4,278         5,057
    -------------------------------------------------------------------------
      Oil Equivalent - boe/d
      (6 to 1)(3)                          2,150         2,755           -22%

    Average Sales Prices ($Cdn)(4)
      Oil/liquids (per bbl)          $     63.48   $     64.29            -2%
      Gas (per mcf)                  $      5.99   $      6.05            -1%
    -------------------------------------------------------------------------
      Oil Equivalent - per boe
       (6 to 1)                      $     54.34   $     55.73            -2%

    Operating costs per boe
     (6 to 1)                        $     12.45   $     10.41            20%
    Transportation costs per boe
     (6 to 1)                        $      2.68   $      3.05           -12%
    Royalties per boe (6 to 1)       $      8.46   $      9.35           -10%
    -------------------------------------------------------------------------
    Operating netbacks per boe
     (6 to 1)                        $     30.76   $     32.91            -6%

    Interest expense per boe
     (6 to 1)                        $      2.11   $      1.79            18%
    G&A (cash only) per boe
     (6 to 1)                        $      2.74   $      1.39            97%
    -------------------------------------------------------------------------
    Corporate netback per boe
     (6 to 1)                        $     25.91   $     29.73           -13%

    Weighted average shares
     outstanding                      34,838,454    27,185,566            28%
    Actual Class A Shares
     outstanding at end of
     period                           28,882,572    25,132,572
    Actual Class B Shares
     outstanding at end of
     period                            1,012,500     1,012,500


                                        Nine Months Ended
                                   September 30,  September 30,
                                           2007           2006      % Change
    -------------------------------------------------------------------------

    Petroleum and natural gas sales  $35,182,225   $35,634,992          -1.3%

    Net earnings (loss)              $(8,975,578)  $ 5,157,667

    Net earnings (loss) per share
     (Class A and Class B)           $     (0.27)  $      0.19

    Cash flow from operations(1)     $16,286,158   $17,682,260            -8%

    Cash flow per share (Class A
     and Class B)                    $      0.50   $      0.67           -25%

    Capital expenditures
     (including acquisitions)        $18,367,853   $45,146,253           -59%

    Net debt, including working
     capital deficiency but
     excluding unrealized hedging
     losses(2)                       $17,576,125   $39,641,469           -56%

    Average Daily Production
      Oil (bbl/d)                          1,669         1,771
      Gas (mcf/d)                          4,574         3,800
    -------------------------------------------------------------------------
      Oil Equivalent - boe/d
       (6 to 1)(3)                         2,431         2,404             1%

    Average Sales Prices ($Cdn)(4)
      Oil/liquids (per bbl)          $     57.33   $     59.78            -4%
      Gas (per mcf)                  $      7.26   $      6.49            12%
    -------------------------------------------------------------------------
      Oil Equivalent - per boe
       (6 to 1)                      $     53.01   $     54.29            -2%

    Operating costs per boe (6 to 1) $     11.99   $     10.44            19%
    Transportation costs per boe
     (6 to 1)                        $      2.51   $      3.02           -17%
    Royalties per boe (6 to 1)       $      7.59   $      9.61           -21%
    -------------------------------------------------------------------------
    Operating netbacks per boe
     (6 to 1)                        $     30.92   $     31.22            -1%

    Interest expense per boe
     (6 to 1)                        $      2.59   $      1.69            53%
    G&A (cash only) per boe
     (6 to 1)                        $      3.07   $      2.01            47%
    -------------------------------------------------------------------------
    Corporate netback per boe
     (6 to 1)                        $     25.26   $     27.52            -8%

    Weighted average shares
     outstanding                      32,778,015    26,455,700            24%
    Actual Class A Shares
     outstanding at end of period     28,882,572    25,132,572
    Actual Class B Shares
     outstanding at end of period      1,012,500     1,012,500

    Notes:

    1.  Cash flow, cash flow per share and operating netback are not defined
        by GAAP in Canada and are referred to as non- GAAP measures. Cash
        flow is based on funds generated from operating activities before
        changes in non-cash working capital and abandonment expenditures.
        Cash flow per share is calculated based on the weighted average
        number of Class A shares outstanding consistent with the calculation
        of net income per share. Corporate netback equals the total of
        revenues less royalties, realized commodity derivative gains/losses,
        transportation, general and administrative costs, interest and cash
        taxes calculated on a boe basis. Total boe is calculated by
        multiplying the daily production by the number of days in the period.

    2.  Net debt includes bank debt and working capital but excludes any
        unrealized hedging losses. At September 30, 2007 the unrealized
        hedging loss included in working capital was $1,958,696 ($nil at
        September 30, 2006)

    3.  In this report, all references to barrels of oil equivalent ("boe")
        are calculated converting natural gas to oil at a ratio of six
        thousand cubic feet of natural gas to one barrel of oil.

    4. Product prices include realized gains/losses on commodity derivatives.
    

    Titan was quite active during the third quarter. We completed and
commenced production from six (5.7 net) wells at our Eastbrook, Saskatchewan
property. A total of 4 (2.8 net) wells were drilled, consisting of two
(0.96 net) wells at West Boundary, one (0.86 net) well at Pouce Coupe and one
(1.0 net) well in southwest Saskatchewan. The two (0.96 net) wells at West
Boundary were drilled and put on production early in the third quarter. Both
wells were drilled targeting an upper Gething zone that the Corporation's 6-35
well is currently producing from. The first well discovered a small isolated
Gething sand that has since watered out. The second well is currently
producing from a lower Gething zone. The targeted upper Gething zone has not
yet been completed. The Pouce Coupe well was successfully completed and put on
production in October, while the well in southwest Saskatchewan was
successfully drilled to evaluate Lower Shaunavon potential in advance of a
large Crown land sale in October. Titan also closed the sale of its Seal
property in July for proceeds consisting of $22.25 million cash plus certain
producing interests in Titan's core areas of Pouce Coupe, Alberta and
Eastbrook, Saskatchewan. By quarter end, total net debt was reduced to less
than $17.6 million (excluding unrealized hedging losses), or less than one
times annualized third quarter cash flow.
    On October 18, 2007, Titan announced that it had entered into a
Pre-Acquisition Agreement with Canetic Resources Trust ("Canetic") whereby
Canetic will make a takeover offer (the "Offer") to acquire all the issued and
outstanding shares of the Corporation in exchange for 0.1917 of a Canetic
trust unit (a "Trust Unit") for each Titan Class A Share and 0.6609 of a Trust
Unit for each Titan Class B Share.
    On October 31, 2007, Canetic announced that it had entered into an
agreement that provides for the combination of Canetic and Penn West Energy
Trust ("Penn West") into the largest conventional oil and gas trust in North
America, with an enterprise value of over C$15 billion. Details of the
combination, and a profile of the combined trust, are contained in the joint
press release issued by Canetic and Penn West. Management and the Board of
Directors of Titan, in consultation with FirstEnergy Capital Corp.
("FirstEnergy"), have assessed the impact of the proposed combination of
Canetic and Penn West on Titan shareholders. Upon reviewing the terms of the
proposed combination with FirstEnergy and upon receiving FirstEnergy's advice
and recommendations related thereto, the Board of Directors has reaffirmed
their recommendation that the Titan Shareholders accept the Offer and tender
their Titan Class A Shares and Titan Class B Shares to the Offer. The Board of
Directors, so as to fulfill its fiduciary obligations, requested FirstEnergy
to update its written opinion in light of the proposed combination of Penn
West and Canetic. On November 13, 2007, the Board of Directors received an
updated written opinion of FirstEnergy that the consideration to be received
under the Offer is fair, from a financial point of view, to the Titan
Shareholders.
    FirstEnergy has provided the Board of Directors of Titan with an updated
fairness opinion that the consideration to be received by Titan shareholders
through the combination of Canetic and Penn West is fair, from a financial
point of view, to the Titan shareholders.
    FirstEnergy Capital Corp. acted as exclusive financial advisor to Titan
with respect to the transaction and has provided Titan's Board of Directors
with its verbal fairness opinion that the consideration to be received
pursuant to the offer is fair, from a financial point of view to the Titan
shareholders. Clarus Securities Inc. and GMP Securities L.P. acted as
strategic advisors to Titan with respect to the transaction.
    It is anticipated that a takeover bid circular and a directors' circular
including discussion on terms and conditions of the Canetic offer will be
mailed to all Titan shareholders by no later than November 15, 2007. A copy of
the circular relating to the proposed combination of Canetic and Penn West is
expected to be mailed to unitholders of Canetic in December, 2007 and will be
available on SEDAR. It is expected that the Canetic unitholder meeting to vote
on the combination and closing will occur in mid January 2008.

    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, Facsimile: (403) 313-8591,
www.titanexploration.ca; Richard F. McHardy, President, Titan Exploration
Ltd., Telephone: (403) 313-8590, Facsimile: (403) 313-8591,
www.titanexploration.ca

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TITAN EXPLORATION LTD.

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