Vero Energy Inc. announces its financial results for the year ended December 31, 2007



    /NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES/

    CALGARY, March 10 /CNW/ - Vero Energy Inc. ("Vero" or the "Company")
(TSX-VRO) today announces its 2007 financial results. Copies of the audited
financial statements and management discussion and analysis in respect thereof
for the year ended December 31, 2007 will be available, in due course, through
www.sedar.com or by visiting Vero's website at www.veroenergy.ca.

    
    2007 Highlights
    -   Increased production per share by 72% and reserves per share by 48%
        on a fully diluted basis.

    -   Increased average daily production by 92% to 4,709 boe/d.

    -   Exited 2007 at approximately 5,700 boe/d representing a 46% increase
        over the 2006 exit rate of 3,900 boe/d.

    -   Cash flow was 49% higher for the fourth quarter at $11.7 million
        ($0.40 per diluted share) and 71% higher at $41.3 million ($1.46 per
        diluted share) for the full year.

    -   Net earnings of $3.2 million for the year resulting in $0.11 (basic
        and diluted) per share.

    -   Annualized fourth quarter net debt to cash flow ratio was 1.3 times.

    -   Operating netback of $27.27 per boe and cash flow netback of
        $24.02 per boe.

    -   Drilled 36 wells (24.1 net) with an 87% success rate.

    2008 UPDATE

    -   Closed a $17.9 million flow-through share equity financing on
        February 28 at a price of $9.25 per share. 1.94 million shares were
        issued.

    -   Active Q1 drilling program underway with plans to drill approximately
        10-11 (7.1 - 7.7 net) wells.


    Financial and operational highlights for the quarter and year ended
December 31, 2007 with comparative data for 2006 are as follows:

    Financial
    ($000's except                Q4      Q4       %     YTD     YTD       %
    per share amounts)          2007    2006  Change    2007    2006  Change
    -------------------------------------------------------------------------
    Production revenue        23,218  14,846      56  83,407  43,948      90
    Cash flow from
     operations               11,662   7,835      49  41,284  24,103      71
      Per basic share           0.40    0.31      29    1.47    0.98      50
      Per diluted share         0.40    0.31      29    1.46    0.98      49
    Net earnings               2,842     688     313   3,164   1,035     206
      Per basic share           0.09    0.03     200    0.11    0.04     175
      Per diluted share         0.09    0.03     200    0.11    0.04     175
    Capital expenditures
     (net)                    20,412  17,966      14  71,453  75,754      (6)
    Net debt                  61,774  49,540      25  61,774  49,540      25

    Share Capital (000's)
    -------------------------------------------------------------------------
    Basic, weighted average   28,914  25,907      12  28,129  24,589      14
    Basic, end of period      28,915  25,907      12  28,915  25,907      12
    Fully diluted             31,349  28,228      11  31,349  28,228      11

    Daily Sales Volumes
    -------------------------------------------------------------------------
    Natural gas volumes
     (mcf/d)                  24,663  15,247      62  22,710  10,891     109
    Light oil (boe/d)            524     299      75     383     324      18
    Liquids (boe/d)              606     460      32     541     314      72
    Corporate (boe/d)          5,241   3,301      59   4,709   2,453      92

    Average Prices Realized
    -------------------------------------------------------------------------
    Natural gas ($/mcf)         6.78    7.77     (13)   7.27    7.17       1
    Light Oil ($/bbl)          73.81   62.32      18   70.66   72.15      (2)
    Liquids ($/bbl)            76.49   52.63      45   67.07   60.43      11
    Corporate ($/boe)          48.16   48.89      (1)  48.53   49.08      (1)

    Netbacks ($/boe)
    -------------------------------------------------------------------------
    Operating                  26.77   29.27      (9)  27.27   30.04      (9)
    Cash flow                  24.20   25.80      (6)  24.02   26.92     (11)

    Wells drilled
    -------------------------------------------------------------------------
    Gross                          8       8       -      36      35       3
    Net                          6.3     5.3      19    24.1    21.0      15
    

    FINANCIAL REVIEW (all dollar amounts are in 000's except per share
    amounts)

    2007 was another year of significant financial and operational growth for
Vero. A large part of this growth was the result of our successful drilling
program. Vero drilled 36 (24.1 net) wells during the year with an 87% success
rate. As a result, sales volumes grew by 92% to average 4,709 boe/d compared
to 2,453 boe/d in 2006. While average commodity prices in 2007 were relatively
flat with 2006, the successful drilling efforts, and the resulting production
gains were parlayed into a 71% increase in cash flow. Cash flow in the fourth
quarter reached $11,662 ($0.40 per diluted share) and was $41,284 ($1.46 per
diluted share) for the full year. As a result of the continued drilling
success in the Edson area throughout 2007, Vero determined that the volumes
processed through a third party plant could become restricted. To mitigate
this, the Company constructed its own 20 mmcfd gas processing plant in the
area to handle its own volumes and potentially take third party gas. This
project allowed Vero to take control of the processing of its own gas, and
more importantly, secured Vero's ability of delivering all new gas added from
its future drilling efforts.
    Vero spent $71,453 on its capital program during the year including:
$3,543 on Crown land acquisitions; $2,478 in acquiring a partners' 50%
interest in the Corbett area; $1,338 on 3-D seismic data in its newly expanded
area of Corbett; $44,245 in drilling and completing 24.1 net wells; and $3,384
for the construction of the new gas plant in Edson. All of this activity
culminated in net debt of $61,774 at the end of the year. Using fourth quarter
cash flow the annualized net debt to cash flow ratio was 1.3. This was a 19%
improvement over the 1.6 ratio from the fourth quarter of 2006.

    2008 OUTLOOK

    Vero continues to have a solid financial and operational base going
forward into 2007. Initial guidance for 2008 is to spend $50,000 and to
increase average production in excess of 30% over the 2007 average production
rate. The first quarter has already been very busy as we have had two drilling
rigs working. Current plans are to drill 10-11 (7.1-7.7 net) wells in the
quarter. In these times of rising finding and development costs, Vero seeks to
continue its ascent against its peers. As with last year, the capital program
is weighted heavily to the first quarter wherein we plan to spend between
$22,000 and $25,000. During the second quarter the company will reduce its
field activities in an effort to control costs during spring break up. This
period of time will be used to make preparations for the resumption of field
activity in the third quarter. In total the company plans to drill
approximately 30-32 (22-23.5 net) wells during the year. However, these plans
may change as the flexibility in our financial resources has been further
enhanced with the closing of a flow-through share equity financing in
February. To give certainty to an element of its cash flow, Vero recently
entered into a series of hedges for the balance of 2008. Three costless
collars were entered into as follows: 1) 5,000 gigajoules per day covering the
period from April 1 through October 31, 2008. The floor is $6.50 per gigajoule
and the ceiling is $8.25 per gigajoule; 2) 5,000 gigajoules per day covering
the period from April 1 through October 31, 2008. The floor is $7.00 per
gigajoule and the ceiling is $8.80 per gigajoule and 3) 10,000 gigajoules per
day covering the period from November 1 through December 31, 2008. The floor
is $7.75 per gigajoule and the ceiling is $9.50 per gigajoule. In addition,
Vero entered into a fixed price swap at $7.50/gj for 5,000 gj/day and covering
the period from April 1 to October 31.
    Vero will continue to prudently manage its cash flows to ensure maximum
financial flexibility and thereby take advantage of future opportunities. The
Company currently estimates that it has more than sufficient resources from
its expected cash flows to meet its 2008 capital program. The additional
resources provided by the equity financing in February and the currently
unutilized bank line will allow us to re-visit the capital program and
potentially accelerate our drilling plans throughout the year.
    Maintaining and expanding Vero's drillable inventory continues to take
centre stage. Current net undeveloped land stands at approximately
76,000 acres. Vero continues to pursue favorable farm-ins and also make
strategic acquisitions of undeveloped lands at Crown land sales. In addition,
we continually evaluate corporate and asset acquisition opportunities with the
aim of adding to existing core areas or opening up new ones, which contain
significant upside potential.

    FINANCIAL STATEMENTS

    Below is selected financial statement information for the year ended
December 31, 2007 with comparative data for December 31, 2006. For full
disclosure of financials statements with notes and the Management, Discussion
and Analysis, please visit our website or SEDAR.

    
    -------------------------------------------------------------------------
    VERO ENERGY INC.

    Balance Sheet
    As at December 31,
    (in thousands of dollars)

                                                             2007       2006
                                                        ---------------------
    ASSETS
    CURRENT
      Accounts receivable                                  16,767     15,308
      Prepaid expenses and deposits                         3,523      1,089
    -------------------------------------------------------------------------
                                                           20,290     16,397

    Property and equipment                                171,727    135,427
    Goodwill                                               15,034     15,034
    -------------------------------------------------------------------------
                                                          207,051    166,858
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    LIABILITIES
    CURRENT
      Accounts payable and accrued liabilities             36,051     30,286
      Bank debt                                            46,013     35,651
    -------------------------------------------------------------------------
                                                           82,064     65,937

    Asset retirement obligations                            2,641      1,785
    Future income taxes                                    10,812     10,567
    -------------------------------------------------------------------------
                                                           95,517     78,289
    SHAREHOLDERS' EQUITY
      Share capital                                       103,077     84,710
      Contributed surplus                                   3,593      2,159
      Retained Earnings                                     4,864      1,700
    -------------------------------------------------------------------------
                                                          111,534     88,569
    -------------------------------------------------------------------------
                                                          207,051    166,858
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    VERO ENERGY INC.

    Statement of Operations, Comprehensive Income
     and Retained Earnings
    (in thousands of dollars, except per share data)
    -------------------------------------------------------------------------

                                                             2007       2006
                                                        ---------------------
    REVENUE
      Production revenue                                   82,063     43,948
      Realized gain on risk management activities           1,344          -
    -------------------------------------------------------------------------
                                                           83,407     43,948
      Royalties                                           (23,003)   (10,749)
      Interest and other                                        -         94
    -------------------------------------------------------------------------
                                                           60,404     33,293
    -------------------------------------------------------------------------

    EXPENSES
      Operating                                            11,189      5,564
      Transportation                                        2,348        734
      General and administrative                            3,132      1,750
      Stock-based compensation                              1,449      2,056
      Interest and bank charges                             2,451      1,434
      Depletion, depreciation and accretion                36,052     22,125
    -------------------------------------------------------------------------
                                                           56,621     33,663
    -------------------------------------------------------------------------

    INCOME (LOSS) BEFORE INCOME TAXES                       3,783       (370)

    INCOME TAXES (RECOVERY)
      Current                                                   -       (292)
      Future                                                  619     (1,113)
    -------------------------------------------------------------------------
                                                              619     (1,405)
    -------------------------------------------------------------------------

    NET EARNINGS AND COMPREHENSIVE INCOME                   3,164      1,035

    RETAINED EARNINGS, BEGINNING OF PERIOD                  1,700        665

    RETAINED EARNINGS, END OF PERIOD                        4,864      1,700
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    NET EARNINGS PER SHARE AND COMPREHENSIVE INCOME
     PER SHARE
      Basic                                                  0.11       0.04
    -------------------------------------------------------------------------
      Diluted                                                0.11       0.04
    -------------------------------------------------------------------------



    VERO ENERGY INC.

    Statement of Cash Flows
    (in thousands of dollars)
    -------------------------------------------------------------------------

                                                             2007       2006
                                                        ---------------------
    CASH FLOWS RELATED TO THE
     FOLLOWING ACTIVITIES:

    OPERATING
      Net earnings                                          3,164      1,035
      Adjustments for:
        Depletion, depreciation and accretion              36,052     22,125
        Stock-based compensation                            1,449      2,056
        Future income taxes                                   619     (1,113)
    -------------------------------------------------------------------------
                                                           41,284     24,103
      Asset retirement costs incurred                         (43)         -
      Changes in non-cash working capital                  (7,140)    (7,883)
    -------------------------------------------------------------------------
                                                           34,101     16,220
    -------------------------------------------------------------------------

    FINANCING
      Increase in bank debt                                10,362     17,131
      Proceeds from private placement, net of share
       issue costs                                         17,935     12,061
      Proceeds from exercise of stock options                  43          -
    -------------------------------------------------------------------------
                                                           28,340     29,192
    -------------------------------------------------------------------------

    INVESTING
      Corporate acquisition                                     -    (18,887)
      Additions to petroleum and natural gas properties   (68,932)   (57,026)
      Purchase of petroleum and natural gas assets         (2,478)         -
      Disposals of petroleum and natural gas properties         -        300
      Additions to administrative assets                      (43)      (141)
      Changes in non-cash working capital                   9,012     17,819
    -------------------------------------------------------------------------
                                                          (62,441)   (57,935)
    -------------------------------------------------------------------------
    NET (DECREASE) INCREASE IN CASH
     AND CASH EQUIVALENTS                                       -    (12,523)

    CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD              -     12,523
    -------------------------------------------------------------------------

    CASH AND CASH EQUIVALENTS, END OF PERIOD                    -          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Vero Energy Inc. is a Calgary based oil and natural gas exploration and
development company. Vero's common shares trade on The Toronto Stock Exchange
under the symbol "VRO". Please see the latest corporate presentation, which is
located on the Vero Energy Inc. website at www.veroenergy.ca.

    This press release shall not constitute an offer to sell or a
solicitation of an offer to buy the securities in any jurisdiction. The common
shares of Vero will not be and have not been registered under the United
States Securities Act of 1933, as amended, and may not be offered or sold in
the United States, or to a U.S. person, absent registration or applicable
exemption therefrom.

    READER ADVISORY

    Forward Looking Statements: Certain information regarding the Company in
this news release including management's assessment of future plans and
operations, production estimates, drilling inventory and wells to be drilled,
timing of drilling and tie-in of wells, productive capacity of new wells,
capital expenditures and the timing thereof, may constitute forward-looking
statements under applicable securities laws and necessarily involve risks
including, without limitation, risks associated with oil and gas exploration,
development, exploitation, production, marketing and transportation, loss of
markets, volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other producers,
inability to retain drilling rigs and other services, the timing and length of
plant turnarounds and the impact of such turnarounds and the timing thereof,
delays resulting from or inability to obtain required regulatory approvals and
ability to access sufficient capital from internal and external sources. As a
consequence, the Company's actual results, performance or achievements could
differ materially from those expressed in, or implied by, these
forward-looking statements and, accordingly no assurance can be given that any
events anticipated by the forward-looking statements will transpire or occur,
or, if any of them do so, what benefits the Company will derive therefrom.
Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on these and other factors that could effect the
Company's operations and financial results are included in reports on file
with Canadian securities regulatory authorities and may be accessed through
the SEDAR website (www.sedar.com), and the Company's website
(www.veroenergy.ca). Furthermore, the forward-looking statements contained in
this news release are made as at the date of this news release and the Company
does not undertake any obligation to update publicly or to revise any of the
included forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required by applicable securities
laws.
    BOE Disclosure: Disclosure provided herein in respect of barrels of oil
equivalent (boe) 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. Mboe means thousands of barrels of oil
equivalent.
    Non-GAAP terms: this press release contains the terms "cash flow from
operations" and "netbacks" which are not terms recognized under Generally
Accepted Accounting Policies ("GAAP"). The Company uses these measures to help
evaluate its performance as well as to evaluate acquisitions. The Company
considers cash flow from operations a key measure as it demonstrates the
Company's ability to generate funds necessary to repay debt and to fund future
growth through capital investment. Funds generated from operations should not
be considered as an alternative to, or more meaningful than, cash flow from
operating activities as determined in accordance with Canadian GAAP as an
indicator of Vero's performance. Vero's determination of cash flow from
operations may not be comparable to that reported by other companies. The
reconciliation between net income and cash flow from operations can be found
in the statement of cash flows in the financial statements. Vero also presents
funds generated from operations per share whereby per share amounts are
calculated using weighted average shares (basic and diluted) outstanding
consistent with the calculation of net earnings per share, which per share
amounts are calculated under GAAP. The Company considers netbacks as a key
measure as it demonstrates its profitability relative to current commodity
prices. Operating netbacks are calculated by taking total revenues and
subtracting royalties, operating expenses and transportations costs on a per
boe basis. Cash flow netbacks are calculated by taking the operating netback
and subtracting interest costs, and general and administrative costs on a per
boe basis.

    %SEDAR: 00022902E




For further information:

For further information: Doug Bartole, President & CEO, at (403)
218-2063; Gerry Gilewicz, Vice-President Finance & CFO, at (403) 693-3170;
Scott Koyich, Investor Relations, (403) 215-5979; Internet: www.veroenergy.ca

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