Wrangler West Drilling Adds Volumes, Delivers Strong Revenue



    CALGARY, Nov. 15 /CNW/ - Wrangler West Energy Corp. ("Wrangler West")
(TSX-V "WX") announces operating and financial results for the three and nine
months ended September 30, 2007, together with comparative data for the same
periods in 2006.
    Wrangler West is a Canadian junior oil and natural gas producer building
production and assets through exploration in Alberta. Since inception, our
mandate has been to use the drill bit to add value for our shareholders and to
maximize return on invested capital. Disciplined management of our finding
costs and production portfolio creates sufficient funds flow from operations
to support growth internally. Wrangler West will continue to reinvest funds
flow from operations and to protect shareholder equity by adhering to our
mandate.

    Production and Revenue Growth

    Wrangler West's 2007 nine month operating and financial achievements:

    
    -   85 percent increase in natural gas production;
    -   50 percent increase in total production;
    -   47 percent increase in revenue; and,
    -   39 percent increase in funds flow from operations.

    In the 2007 third quarter, we

    -   drilled, cased and tested four successful wells, including two
        horizontals; and
    -   exited with an inventory of 20 drilling locations.


                       Three and Nine Month Highlights

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Production
    Oil and NGL
     (bbls/d)          379       402        (6)      358       405       (12)
    Natural gas
     (mcf/d)         7,795     4,082        91     7,922     4,272        85
    Total (boe/d)    1,678     1,082        55     1,678     1,117        50
    -------------------------------------------------------------------------
    Prices
    Oil and NGL
     ($/bbl)         65.03     62.35         4     58.63     59.71        (2)
    Natural gas
     ($/mcf)          5.91      6.15        (4)     7.27      6.84         6
    -------------------------------------------------------------------------
    Per boe ($)
    Petroleum and
     natural gas
     revenues        42.12     46.33        (9)    46.82     47.82        (2)
    Royalties
     (net of ARTC)   (8.57)   (10.68)      (20)    (9.31)   (10.36)      (10)
    Operating costs (10.44)   (14.27)      (27)   (10.49)   (10.58)       (1)
    -------------------------------------------------------------------------
    Field netback    23.12     21.38         8     27.02     26.88         1
    General and
     administrative  (2.48)    (2.49)        -     (1.96)    (2.30)      (15)
    Interest         (0.72)    (0.56)       29     (0.83)    (0.46)       80
    Current
     income taxes    (1.67)        -         -     (1.96)        -         -
    -------------------------------------------------------------------------
    Funds flow from
     operations      18.23     18.34        (1)    22.27     24.11        (8)
    Depletion,
     depreciation
     and accretion  (18.92)   (14.43)       31    (19.86)   (14.21)       40
    Stock-based
     compensation    (0.84)    (0.37)      127     (1.23)    (0.77)       60
    Future income
     taxes - recovery
     (expense)        0.04      0.50       (92)     0.37     (0.60)     (162)
    -------------------------------------------------------------------------
    Net earnings     (1.48)     4.04      (137)     1.55      8.53       (82)
    -------------------------------------------------------------------------
    Financial
     ($ thousand)
    Petroleum and
     natural gas
     revenues        6,505     4,611        41    21,447    14,582        47
    Royalties
     (net of ARTC)  (1,324)   (1,063)       24    (4,267)   (3,159)       35
    Operating costs (1,612)   (1,420)       14    (4,804)   (3,226)       49
    General and
     administrative   (384)     (247)       55      (896)     (702)       28
    Interest          (112)      (55)      102      (380)     (141)      169
    Current income
     taxes            (259)        -         -      (898)        -         -
    -------------------------------------------------------------------------
    Funds flow
     from
     operations      2,815     1,825        54    10,202     7,354        39
    Depletion,
     depreciation
     and accretion  (2,921)   (1,437)      103    (9,096)   (4,335)      110
    Stock-based
     compensation     (129)      (37)      254      (564)     (235)      139
    Future income
     taxes - recovery    7        49       (86)      167      (182)     (192)
    -------------------------------------------------------------------------
    Net earnings
     (loss)           (228)      402      (157)      709     2,602       (73)
    -------------------------------------------------------------------------
    Outstanding
     common shares
     (thousand,
     except where
     indicated)
    Weighted average
     - basic         6,361     6,361         -     6,361     6,361         -
    Weighted average
     - diluted       7,070     6,591         7     6,870     6,591         4
    Period end
     - basic         6,361     6,361         -     6,361     6,361         -
    -------------------------------------------------------------------------
    Funds flow -
     basic ($/share)  0.44      0.29        52      1.60      1.16        38
    Funds flow -
     diluted
     ($/share)        0.40      0.28        43      1.48      1.12        32
    Earnings (loss)
     - basic
     ($/share)       (0.04)     0.06      (167)     0.11      0.41       (73)
    Earnings (loss)
     - diluted
     ($/share)       (0.03)     0.06      (150)     0.10      0.39       (74)
    -------------------------------------------------------------------------
    Total assets
     ($ thousand)                                 46,007    40,140        15
    -------------------------------------------------------------------------

    Note 1: Wrangler West converts petroleum and natural gas reserves and
            volumes to a common unit of measure on a basis of six thousand
            cubic feet ("mcf") of natural gas equals one barrel ("bbl") of
            oil. Disclosure using barrels of oil equivalent ("boe") may be
            misleading, particularly if used in isolation. The basis for the
            boe conversion ratio of 6 mcf equals one bbl is an energy
            equivalency conversion method, primarily applicable at the burner
            tip, and it does not represent a value equivalency at the
            wellhead.
    Note 2: Columns may not add due to rounding. Percentages of change are
            based on actual, not rounded, totals.


                             To Our Shareholders
    

    Wrangler West is pleased to present operating and financial results for
the three and nine months ended September 30, 2007.

    Increased Production

    For the 2007 third quarter, Wrangler West produced 1,678 boe/d, a
55 percent increase from the same period one year ago. Throughout the third
quarter, Wrangler West maintained a robust level of operating activity. We
pushed forward with the drill bit, successfully drilling, casing and testing
four wells.

    Riviere Core Area

    In our core area at Riviere, we drilled two of the new wells horizontally
in the Wabamun A oil pool. Our horizontal well at 4-3 successfully created
1,000 meters of well bore and our 10-33 horizontal well reached 800 meters in
the Wabamun A zone. We have completed and tested both of these wells and they
are awaiting tie-in. We cased, completed and tested the two additional wells
drilled in the third quarter and they are awaiting tie-in.
    At the same time as our drilling activity was underway, we initiated a
major upgrade to Wrangler West's gathering system. We bored four new pipeline
legs under the Sturgeon River and under Highway 37. We completed this complex
project within budget and according to plan.
    With the additions to our gathering system, we can now ship natural gas
south, bypassing our oil facilities and connecting directly to a main sales
line. Compressed, sweetened natural gas from our oil facilities will also now
flow south to the same sales line. In time, we will commission the two
remaining surplus lines to transport new oil production as we pursue future
development activities south of the Sturgeon River.
    In the fourth quarter, we will install new compression facilities to
handle increased natural gas volumes. We will also expand Wrangler West's oil
processing facilities to accommodate the results of our successful horizontal
drilling program.
    These facility expansion projects will coincide with the commissioning of
our approved pilot waterflood project and pressure maintenance program. We
have approximately 100 boe per day shut-in at Riviere awaiting the Alberta
Energy & Utilities Board ("AEUB") review and approval of our down spacing
application submitted in the 2007 second quarter.

    Industry Conditions

    Crude oil prices continue to surpass industry assumptions for 2007. Oil
futures are trading in excess of US$95 WTI per barrel. The current consensus
is that crude oil will surpass US$100 per barrel. However, Alberta producers
typically produce lower quality crude oil than benchmark which subjects
Alberta crude oil to a discount related to gravity and sulphur content.
Recently, the average price for Edmonton par crude was Cdn$86 before the
quality discount which further reduces the net price that most Alberta
producers receive by as much as Cdn$25 per barrel. That means the crude oil
price received by most producers is significantly lower than the perceived
"$100 per barrel".
    Natural gas producers have had a challenging year. Early in 2007, natural
gas price was at approximately Cdn$8.00 per mcf but summer prices fell below
$5.00 per mcf. Storage levels remain high and the differential between NYMEX
and Alberta spot price is wide. There is no certainty of a cold winter. In the
face of lower demand, natural gas drilling is down considerably and delivery
receipts within Alberta are demonstrating a parallel decline. Liquid natural
gas ("LNG") deliveries to the eastern seaboard, mild weather and near record
storage continue to exert downward pressure on natural gas prices that
historically, increase heading into the winter season.
    Compounding the effect of a soft natural gas market, the Alberta
government recently announced a new royalty regime that our industry and
investors view with concern. Oil and natural gas production in the province is
a depleting asset. Without the investment of new capital, this asset will
deplete at an unacceptable rate. Albertans will have difficulty capturing any
benefit from increased royalties if wells become uneconomic to drill and
produce. Also, Albertans need to consider the capital-intensive nature of oil
and natural gas exploration as well as finding, operating and royalty costs
incurred by producers before determining Alberta's "fair share".
    Alberta's oil and natural gas producers are working in an aging
geological basin that needs continued access to risk capital for full
development of it. The announced royalty program, to take effect in January
2009, penalizes oil and natural gas explorers who target drilling of high rate
wells, the type of exploration that typically attracts risk capital. With its
focus on acceptable rates of return, risk capital is readily mobile. Alberta's
announcement suggests the province is no longer interested in business
opportunities that require risk capital.
    The Canadian Association of Oilwell Drilling Contractors ("CAODC")
forecasts 2008 drilling of 13,735 wells in Alberta, a 38 percent drop from
2005-2006 when the industry average was 22,000 wells drilled. To maximize
their royalty take, the Government of Alberta must find ways to encourage
exploratory drilling for more wells that can both replace and increase
production. Without drilling for high rate production wells, the government's
share will be a bigger piece of a smaller pie - reducing the intended benefit
for Albertans.
    Alberta's oil and gas services sector is undergoing layoffs as producers
cut back drilling programs. The announced new royalty regime needs refinements
that encourage oil and natural gas exploration to keep people and equipment
working in the industry.

    Overview

    Wrangler West has completed a very productive third quarter and nine
months. Once all the work underway is completed, we expect to deliver a strong
increase in production exiting 2007. Wrangler West's strategic land position
somewhat offsets the impact of the Alberta government's royalty decision. Our
land holdings and production base are balanced between crown and freehold
acreage which will mitigate the burden of announced royalty changes.
    However, in the shadow of impending royalty regime increases, we have
restricted Wrangler West's 2007 drilling. During the next few weeks, we will
review our 2008 capital expenditures program to prioritize our drilling
inventory according to risk and rate of return.

    Steven F. Johnson
    President and Chief Executive Officer
    November 15, 2007

    
                     Management's Discussion and Analysis
    

    Management of Wrangler West Energy Corp. ("Wrangler West", "we", the
"company" or "our") prepared the following information as of November 15, 2007
which should be read in conjunction with the audited financial statements for
the years ended December 31, 2006 and 2005 and the unaudited interim financial
statements for the three and nine months ended September 30, 2007 and 2006.
    Management's Discussion and Analysis contains the term 'funds flow from
operations' and 'netbacks', which are not recognized measures under Canadian
generally accepted accounting principles (GAAP). Management believes that, in
addition to net earnings, funds flow from operations is a useful supplemental
measure. Investors are cautioned, however, that this measure should not be
construed as an alternative to net earnings determined in accordance with
GAAP, as an indication of the company's performance.
    Wrangler West's determination of funds flow from operations may not be
comparable to that reported by other companies. Funds flow from operations is
equal to cash flow from operations before changes in non-cash operating
working capital items as presented in the statement of cash flows. Wrangler
West presents funds flow from operations per share calculated on a basis
consistent with the calculation of earnings per share. Netbacks are calculated
using total revenue minus royalties and operating costs. Wrangler West
calculates total boe by multiplying the daily production times the number of
days in the period.
    The table below illustrates the reconciliation between cash flow from
operations and funds flow from operations, as defined above, after changes in
working capital for the periods ended September 30, 2007 and 2006.

    
                                      Three months ended   Nine months ended
                                                  Sep 30              Sep 30
    -------------------------------------------------------------------------
    ($ thousands)                         2007      2006      2007      2006
    -------------------------------------------------------------------------
    Cash flow from operations            3,814    (2,049)   11,400     6,892
    -------------------------------------------------------------------------
    Change in non-cash working capital    (999)    3,875    (1,198)      462
    -------------------------------------------------------------------------
    Funds flow from operations           2,815     1,825    10,202     7,354
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West converts petroleum and natural gas reserves and volumes to
a common unit of measure on a basis of six thousand cubic feet ("mcf") of
natural gas equals one barrel ("bbl") of oil. Disclosure using barrels of oil
equivalent ("boe") may be misleading, particularly if used in isolation. The
basis for the boe conversion ratio of 6 mcf equals one bbl is an energy
equivalency conversion method, primarily applicable at the burner tip, and it
does not represent a value equivalency at the wellhead.

    This document contains forward-looking statements, usually indicated by
such statements as "we expect", "we anticipate", "we intend" and similar
expressions, such as those relating to: results of operations and financial
condition; capital expenditures, financing, and commodity prices; number,
type, timing and tie-in of wells drilled; commencement and costs of
production; and the magnitude of crude oil and natural gas reserves. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties that could significantly affect anticipated results in the
future and, accordingly, actual results may differ materially from those
predicted. The forward-looking statements contained in this report are as of
November 15, 2007 and are subject to change after that date. Assumptions used
in the preparation of such information, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, readers should
not rely unduly on forward-looking statements. Wrangler West Energy Corp.
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities laws.
    Wrangler West's external business risks arise from the uncertainty of
crude oil and natural gas pricing, the uncertainty of interest and exchange
rates, environmental and safety issues, and financial and liquidity
considerations. Additional risk arises from the production performance of
existing properties, changes in regulatory standards and uncertain results
from capital expenditure programs.
    Wrangler West's auditors have not reviewed the financial statements for
the three and nine months ended September 30, 2007, the accompanying notes nor
the MD&A in this interim report.

    REVIEW OF INTERIM FINANCIAL STATEMENTS

    Wrangler West achieved growth of 50 percent in total production for the
nine months ended September 30, 2007 as we tied-in natural gas production
drilled earlier in the year. We completed and tested new horizontal oil
development drilling during the third quarter. Production from this drilling
should positively impact fourth quarter financial results.

    
    SELECTED QUARTERLY INFORMATION

                                      Three months ended
    -------------------------------------------------------------------------
    ($ thousand except where            Sep 30    Jun 30    Mar 31    Dec 31
     indicated)                           2007      2007      2007      2006
    -------------------------------------------------------------------------
    Total revenues                       6,505     7,596     7,346     4,921

    Funds flow from operations           2,815     3,757     3,629     2,244
    Funds flow from operations -
     basic ($/share)                      0.44      0.59      0.57      0.35
    Funds flow from operations -
     diluted ($/share)                    0.40      0.55      0.55      0.24

    Net earnings (loss)                   (228)      570       368        (9)
    Earnings (loss) - basic ($/share)    (0.04)     0.09      0.06         -
    Earnings (loss) - diluted ($/share)  (0.03)     0.08      0.06         -

    Total production (boe/d)             1,678     1,695     1,660     1,143
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



                                      Three months ended
    -------------------------------------------------------------------------
    ($ thousand except where            Sep 30    Jun 30    Mar 31    Dec 31
     indicated)                           2006      2006      2006      2005
    -------------------------------------------------------------------------
    Total revenues                       4,611     5,070     4,900     5,500

    Funds flow from operations           1,825     3,340     2,188     3,120
    Funds flow from operations -
     basic ($/share)                      0.29      0.53      0.34      0.49
    Funds flow from operations -
     diluted ($/share)                    0.28      0.51      0.33      0.48

    Net earnings                           402     1,641       560     1,236
    Earnings - basic ($/share)            0.06      0.26      0.09      0.19
    Earnings - diluted ($/share)          0.06      0.25      0.08      0.19

    Total production (boe/d)             1,082     1,170     1,100       935
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West's daily production volumes have increased 47 percent since
2006 year-end. Growth in total revenue reflects the growth in production
volumes during 2007. Earnings fluctuate from quarter to quarter due to changes
in commodity prices, depletion, operating costs and provision for tax.
    Management directs readers to the appropriate interim period MD&A for
detailed analysis and explanation of the variance between individual quarters.

    
    PRODUCTION

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL
     (bbls/day)        379       402        (6)      358       405       (12)
    Natural gas
     (mcf/d)         7,795     4,082        91     7,922     4,272        85
    Total (boe/d)    1,678     1,082        55     1,678     1,117        50
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, total production
grew as a result of successful drilling for natural gas. This more than
offsets production declines. Crude oil production is lower due to curtailment
of high water producing wells at Riviere. This crude oil production remained
shut in during the third quarter. Subsequent to September 30, the Alberta
Energy Utilities Board ("AEUB") approved our application to inject produced
water into the Wabamun A pool and water injection will commence mid fourth
quarter.
    Compared to the 2007 second quarter, third quarter total production was
unchanged.

    
    REVENUES

    Production Revenues

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL      2,269     2,303        (1)    5,724     6,604       (13)
    Natural gas      4,236     2,308        84    15,723     7,978        97
    -------------------------------------------------------------------------
    Petroleum and
     natural gas
     revenues        6,505     4,611        41    21,447    14,582        47
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Prices

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL
     ($/bbl)         65.03     62.35         4     58.63     59.71        (2)
    Natural gas
     ($/mcf)          5.91      6.15        (4)     7.27      6.84         6
    Total production
     ($/boe)         42.12     46.33        (9)    46.82     47.82        (2)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Revenues increased from the same periods one year ago despite a decrease
in combined commodity prices. We expect third quarter drilling success will
increase crude oil production by year-end.
    Compared to the 2007 second quarter, third quarter total revenue decreased
14 percent due primarily to lower natural gas prices.


    ROYALTIES

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Crown              752       854       (12)    2,426     2,718       (11)
    Other              572       210       173     1,841       931        98
    ARTC                 -        (1)     (100)        -      (490)     (100)
    -------------------------------------------------------------------------
    Total royalties  1,324     1,063        24     4,267     3,159        35
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Royalties

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
    ($/boe)           2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Crown             4.87      8.58       (43)     5.30      8.91       (41)
    Other             3.70      2.11        75      4.02      3.05        32
    ARTC                 -     (0.01)     (100)        -     (1.61)     (100)
    -------------------------------------------------------------------------
    Total royalties   8.57     10.68       (20)     9.31     10.36       (10)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, total royalties
increased as a result of higher production volumes. Wrangler West's production
from freehold lands, which are subject to a lower royalty rate, moderates our
overall royalty rate. Royalties per boe decreased as natural gas prices fell.
    There is no Alberta Royalty Tax Credit ("ARTC") for the current reporting
period as the Government of Alberta cancelled the ARTC program effective
January 1, 2007.

    
    OPERATING COSTS

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Operating costs
     ($ thousand)    1,612     1,420        14     4,804     3,226        49
    Operating costs
     ($/boe)         10.44     14.27       (27)    10.49     10.58        (1)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, operating costs
decreased on a per boe basis as a result of expensed workovers completed in
2006 third quarter. In 2007, we have not incurred incremental workover
expenses because of positive production performance achieved by the 2006
workovers. Following 2006 third quarter, we undertook initiatives to reduce
water-handling costs by shutting in high water cut wells.
    Compared to the 2007 second quarter, third quarter operating costs
increased 9 percent, reflecting ongoing workovers of oil wells and
installation of artificial lift. In 2007, we expect our operating costs to
remain between $10.00 and $11.00 per boe.

    
    NETBACKS

    Field netbacks

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Light and
     medium crude
     oil ($/bbl)     29.15     33.64       (13)    26.28     36.32       (28)
    Natural gas
     ($/mcf)          3.52      2.39        47      4.49      3.53        27
    NGL ($/bbl)      40.83     31.09        31     37.97     43.15       (12)
    Combined ($/boe) 23.12     21.38         8     27.02     26.88         1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, combined field
netbacks were relatively unchanged from the same period one year ago.
    Compared to the 2007 second quarter, combined third quarter netbacks for
Wrangler West's current mix of production were 23 percent lower. The strength
of crude oil prices did not entirely offset softer natural gas prices for the
quarter.

    
    GENERAL AND ADMINISTRATIVE ("G&A")

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    G&A ($ thousand)   384       247        55       896       702        28
    G&A ($/boe)       2.48      2.49         -      1.96      2.30       (15)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three months ended September 30, 2007 the G&A decrease on a per
boe basis reflected increased production volumes and overhead efficiencies.
During 2007 third quarter, Wrangler West capitalized $183,000 (2006 -
$154,000) of G&A associated with exploration and development activities.
During the first nine months of 2007, we capitalized $604,000 (2006 -
$414,000).
    Compared to the 2007 second quarter, third quarter G&A rate was
53 percent higher to reflect provisions for our 2007 bonus program and changes
to executive compensation. The nine month per boe rate is 15 percent lower due
to higher production volumes.

    
    INTEREST EXPENSE

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Interest
     ($ thousand)      112        55       102       380       141       169
    Interest
     ($/boe)          0.72      0.56        29      0.83      0.46        80
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, interest expense
represented interest on the use of Wrangler West's revolving demand credit
facility.
    At the end of the 2007 third quarter, bank indebtedness of $8.1 million
was lower than 2007 second quarter bank indebtedness of $9.0 million.
    For the balance of 2007, as we complete our capital expenditures program,
Wrangler West's interest expense will reflect continued use of the
$17.5 million credit facility.

    
    STOCK-BASED COMPENSATION

                     Three months ended Sep 30      Nine months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Stock-based
     compensation
     ($ thousand)      129        37       254       564       235       139
    Stock-based
     compensation
     ($/boe)          0.84      0.37       127      1.23      0.77        60
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West utilizes the fair value method for measuring stock option
expenses. In May 2007, the board of directors approved granting of
385,000 options to purchase common shares.
    For the three months ended September 30, 2007, Wrangler West capitalized
stock-based compensation of $75,992 (2006 - $140,082) and, for the nine months
ended September 30, 2007, we capitalized $326,393 (2006 - $272,704).
    Compared to the 2007 second quarter, third quarter stock-based
compensation was lower by 67 percent because the immediate vesting of
one-third of the stock options grants was reflected in the 2007 second
quarter.

    
    DEPLETION, DEPRECIATION AND ACCRETION (DD&A)

                     Three months ended Sep 30       Six months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Depletion,
     depreciation
     and accretion
     ($ thousand)    2,921     1,437       103     9,096     4,335       110
    Depletion,
     depreciation
     and accretion
     ($/boe)         18.92     14.43        31     19.86     14.21        40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    DD&A per boe increased compared to the same periods one year ago due to
higher finding and development costs.
    Compared to the 2007 second quarter, DD&A per boe was 7 percent lower for
the 2007 third quarter. Production and well performance resulted in positive
revisions to proved reserves.
    Drilling success during the balance of 2007 has the potential to increase
Wrangler West's total proved reserves and to further reduce DD&A.

    
    INCOME TAXES

                     Three months ended Sep 30       Six months ended Sep 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Current income
     taxes             259         -         -       898         -         -
    Future income
     taxes
     (recovery)         (7)      (49)      (86)     (167)      182      (192)
    -------------------------------------------------------------------------
    Total income
     taxes
     (recovery)        252       (49)     (610)      731       182       302
    -------------------------------------------------------------------------
    ($/boe)
    Current income
     taxes           (1.67)        -         -      1.96         -         -
    Future income
     taxes
     (recovery)       0.04     (0.50)      (92)    (0.37)     0.60      (162)
    -------------------------------------------------------------------------
    Total income
     taxes
     (recovery)      (1.63)    (0.50)     (426)     1.60      0.60       167
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West will pay tax during 2007. Successful drilling forced
redirection of capital expenditures during 2007 fourth quarter to equipping
and tie-in activities with lower current income tax deductions compared to
exploratory and development drilling expenditures. We will direct these
expenditures to completion of the horizontal wells and expanding the gathering
system in Riviere to maximize production which otherwise would be restricted
or shut-in due to facility restrictions.
    In addition to the overall 2007 third quarter tax provision, we
recognized a one-time true-up of tax pools on filing our corporate tax return.
Therefore, this period's tax rate does not represent Wrangler West's
go-forward tax rate.

    
    EARNINGS AND COMPREHENSIVE INCOME

                     Three months ended Sep 30       Six months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Net earnings
     (loss) and
     comprehensive
     income
     ($ thousand)     (228)      402      (157)      709     2,602       (73)
    Net earnings
     (loss) and
     comprehensive
     income
     ($/boe)         (1.48)     4.04      (137)     1.55      8.53       (82)
    Earnings
     (loss) -
     basic
     ($/share)       (0.04)     0.06      (167)     0.11      0.41       (73)
    Earnings
     (loss) -
     diluted
     ($/share)       (0.03)     0.06      (150)     0.10      0.39       (74)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and nine months ended September 30, 2007, Wrangler West's
earnings decreased despite significant production increases reflecting the
deterioration in natural gas prices year over year as well as increased
depletion expense associated with higher finding and development costs.
    Compared to 2007 second quarter positive earnings of $570,000, our third
quarter recorded a loss of $228,000 reflecting the decrease in natural gas
prices from $7.86 per mcf in 2007 second quarter to $5.91 in 2007 third
quarter along with higher G&A costs.

    
    FUNDS FLOW FROM OPERATIONS AND LIQUIDITY

                     Three months ended Sep 30       Six months ended Sep 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Funds flow
     from
     operations
     ($ thousand)    2,815     1,825        54    10,202     7,354        39
    Funds flow
     from
     operations
     ($/boe)         18.23     18.34        (1)    22.27     24.11        (8)
    Funds flow
     from
     operations
     - basic
     ($/share)        0.44      0.29        52      1.60      1.16        38
    Funds flow
     from
     operations
     - diluted
     ($/share)        0.40      0.28        43      1.48      1.12        32
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three months ended September 30, 2007, funds flow from operations
increased as a result of growing production volumes over the past several
months. The nine month period increase reflects higher production volumes
offset by lower natural gas prices during 2007.
    Compared to the 2007 second quarter, third quarter funds flow from
operations reflect lower natural gas prices.
    At September 30, 2007, Wrangler West had a working capital deficiency,
including bank indebtedness, of $12.7 million ($10.9 million at December 31,
2006).
    During the 2007 second quarter, Wrangler West's revolving demand credit
facility increased to $17.5 million from $13.0 million. At September 30, 2007,
$8.1 million was drawn on the line. To complete our 2007 capital expenditures
budget of $15 million, we will continue to use funds flow from operations and
the revolving demand credit facility.

    
    TOTAL CAPITALIZATION

    -------------------------------------------------------------------------
    ($ thousand except where noted)                       as at Sep 30, 2007
    -------------------------------------------------------------------------
    Common shares outstanding (thousand)                               6,361
    Closing market price ($)                                           11.01
    -------------------------------------------------------------------------
    Market value of common shares                                     70,033
    Net debt                                                          12,747
    -------------------------------------------------------------------------
    Total capitalization                                              82,779
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    At September 30, 2007, Wrangler West's total capitalization was $83
million based on the closing price of $11.01 per common share. As at November
-15, 2007, Wrangler West had 6,360,827 common shares outstanding.

    
    CAPITAL EXPENDITURES

                     Three months ended Sep 30       Six months ended Sep 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Land costs          (1)      187      (101)      568       481        18
    Seismic             88       550       (84)    1,266     1,034        23
    Capitalized
     administrative
     expenses          183       154        19       604       414        46
    Drilling and
     completions     4,057     2,493        63     7,410     8,036        (8)
    Tangible
     production
     equipment
     and gathering
     systems           732       849       (14)    2,241     1,578        42
    -------------------------------------------------------------------------
    Total capital
     expenditures    5,060     4,233        20    12,089    11,543         5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    During the three months ended September 30, 2007, we drilled two
horizontal wells resulting in two oil wells at Riviere. In addition, at
Riviere, we drilled one step-out well in the Wabamun A pool and one
exploratory well in the Mannville. We cased, completed and tested all four
wells during 2007 third quarter.

    OUTLOOK

    Wrangler West's strategy is to continue to grow by exploration and
development drilling. We deploy funds flow from operations and a revolving
demand credit facility to initiate and develop our internally generated
exploration concepts and, ultimately, to add reserves.
    During the 2007 third quarter, we initiated tie-in activities and
anticipate adding new production during the latter part of the 2007 fourth
quarter. Wrangler West currently has achieved significant momentum in
developing Riviere. Our twenty-location drilling inventory is primarily
development associated with our horizontal program at Riviere. To maintain our
momentum, we have augmented our program with three exploratory initiatives
which we will test early in 2008. Our 2007 successes are positioning Wrangler
West for another year of growth in 2008.

    Additional Information

    Additional information relating to Wrangler West Energy Corp. is filed on
SEDAR and accessible at www.sedar.com. To obtain copies of published corporate
information, contact JoAnne Dorval-Dronyk at Wrangler West Energy Corp. 1950,
444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8 or e-mail
JoAnne@wranglerwest.ca.

    
                         Wrangler West Energy Corp.
                           Interim Balance Sheets

                                                  September 30,  December 31,
                                                          2007          2006
                                                    (unaudited)
    -------------------------------------------------------------------------
    Assets
    Current assets
      Accounts receivable                          $ 2,508,651   $ 2,537,575
      Prepaid expenses                                 327,824       414,520
    -------------------------------------------------------------------------
                                                     2,836,475     2,952,095

    Property and equipment                          43,170,719    39,434,944
    -------------------------------------------------------------------------
                                                   $46,007,194   $42,387,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and shareholders' equity

    Current liabilities
      Bank indebtedness (note 2)                   $ 8,083,383   $ 8,993,235
      Accounts payable and accrued liabilities       6,601,339     4,818,048
      Current income taxes payable                     898,265             -
    -------------------------------------------------------------------------
                                                    15,582,987    13,811,283

    Asset retirement obligation                      1,855,383     1,579,133

    Future income taxes                              6,312,503     6,339,723
    -------------------------------------------------------------------------
                                                    23,750,873    21,730,139

    Shareholders' equity
      Share capital                                 11,070,257    11,070,257
      Contributed surplus (note 3)                   2,943,714     2,053,479
      Retained earnings                              8,242,350     7,533,164
    -------------------------------------------------------------------------
                                                    22,256,321    20,656,900

                                                   $46,007,194   $42,387,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    See accompanying notes to the interim financial statements

    On behalf of the Board of Directors,

    "James B. Howe"       "Randolph M. Charron"
     Lead Director         Director



                         Wrangler West Energy Corp.
                       Interim Statements of Earnings
                            and Retained Earnings
                                 (unaudited)

                       Three months ended Sep 30    Nine months ended Sep 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Revenue
      Petroleum
       and natural
       gas             $ 6,504,752   $ 4,611,270   $21,447,005   $14,582,002
      Royalties, net
       of ARTC          (1,323,520)   (1,063,202)   (4,267,035)   (3,158,967)
    -------------------------------------------------------------------------
                         5,181,232     3,548,068    17,179,970    11,423,035

    Expenses
      Operating          1,611,784     1,419,940     4,803,940     3,226,276
      General and
       administrative      383,549       247,363       895,810       701,647
      Interest             111,887        55,382       379,971       141,327
      Stock-based
       compensation        129,297        36,550       563,842       235,482
      Depletion,
       depreciation
       and accretion     2,921,422     1,436,573     9,096,176     4,334,629
    -------------------------------------------------------------------------
                         5,157,939     3,195,808    15,739,739     8,639,361
    -------------------------------------------------------------------------
    Earnings before
     income taxes           23,293       353,260     1,440,231     2,783,674

    Current income
     taxes                 258,640             -       898,265             -
    Future income
     taxes (recovery)       (6,887)      (49,372)     (167,220)      181,820
    -------------------------------------------------------------------------
                           251,753       (49,372)      731,045       181,820
    Net earnings
     (loss) and
     comprehensive
     income               (228,460)      401,632       709,186     2,601,854

    Retained earnings,
     beginning of
     period              8,470,810     7,140,311     7,533,164     4,940,089

    Retained earnings,
     end of period     $ 8,242,350   $ 7,541,943   $ 8,242,350   $ 7,541,943
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings (loss)
     per share -
     basic             $     (0.04)  $      0.06   $      0.11   $      0.41
    Earnings (loss)
     per share -
     diluted           $     (0.03)  $      0.06   $      0.10   $      0.39
    -------------------------------------------------------------------------

    See accompanying notes to the interim financial statements



                         Wrangler West Energy Corp.
                             Interim Statements
                                of Cash Flows
                                 (unaudited)

                       Three months ended Sep 30    Nine months ended Sep 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Cash provided by
     (used in):

    Operating
      Net earnings     $  (228,460)  $   401,632   $   709,186   $ 2,601,854
      Items not
       involving cash
        Depletion,
         depreciation
         and accretion   2,921,422     1,436,573     9,096,176     4,334,629
        Stock-based
         compensation      129,297        36,550       563,842       235,482
        Future income
         taxes
         (recovery)         (6,887)      (49,372)     (167,220)      181,820
    -------------------------------------------------------------------------
                         2,815,372     1,825,383    10,201,984     7,353,785
        Change in
         non-cash
         operating
         working capital   998,712    (3,875,257)    1,197,552      (461,655)
    -------------------------------------------------------------------------
                         3,814,084    (2,049,874)   11,399,536     6,892,130
    Financing
      Increase
       (decrease) in
       bank
       indebtedness       (109,506)    1,914,079      (909,852)    2,618,055

    Investing
      Additions to
       petroleum and
       natural gas
       properties       (5,059,693)   (4,233,459)  (12,089,307)  (11,543,045)
      Change in
       non-cash
       investing
       working capital   1,355,115    (4,369,254)    1,599,623    (2,032,860)
    -------------------------------------------------------------------------
                        (3,704,578)      135,795   (10,489,684)   (9,510,185)
    Cash and cash
     equivalents,
     beginning and
     end of period               -             -             -             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary cash
     flow information
      Cash interest
       paid            $   120,876   $    52,680   $   384,245   $   131,519
      Cash taxes paid            -             -             -             -
    -------------------------------------------------------------------------

    See accompanying notes to the interim financial statements



                         Wrangler West Energy Corp.
                             Notes to the Interim
                             Financial Statements
           Three and nine months ended September 30, 2007 and 2006
                                 (unaudited)
    

    Wrangler West Energy Corp. (the "Corporation") was incorporated on
March 17, 2000 under the Business Corporations Act (Alberta). The
Corporation's primary business activity is the exploration, development and
production of petroleum and natural gas in Alberta, Canada.
    The preparation of financial statements in conformity with Canadian
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of the financial
statements and the reported amounts of revenue and expenses during the
reporting periods. Actual results could differ from those estimates.

    1.  SIGNIFICANT ACCOUNTING POLICIES

    Management prepared the interim financial statements of the Corporation
    in accordance with generally accepted accounting principles in Canada.
    The interim financial statements have been prepared following the same
    accounting policies and methods of computation as the financial
    statements for the year ended December 31, 2006. Certain information and
    disclosures normally required as inclusions in the notes to the annual
    financial statements have been omitted or condensed. These interim
    financial statements and the notes thereto should be read in conjunction
    with the annual financial statements in the Corporation's 2006 annual
    report.

    On January 1, 2007, the Corporation adopted the new Canadian accounting
    standards for financial instruments - recognition and measurement,
    financial instruments - presentation and disclosures, and comprehensive
    income. The adoption of the new standards did not result in any
    adjustments to the recognition or measurement of the Corporation's
    financial instruments at January 1, 2007 or subsequently. The statement
    of comprehensive income and accumulated other comprehensive income have
    not been presented as the Corporation does not have any elements of other
    comprehensive income.

    At September 30, 2007, the carrying amount of the Corporation's financial
    instruments approximated their fair value due to their short-term
    maturities.

    Two newly issued Canadian accounting standards will require additional
    disclosure in the Corporation's financial statements commencing
    January 1, 2008 with respect to the Corporation's financial instruments,
    as well as its capital and how it is managed.

    2.  BANK INDEBTEDNESS

    The Corporation has a revolving demand operating credit facility with a
    Canadian chartered bank that has a maximum amount of $17,500,000. The
    facility bears interest at the bank's prime interest rate and is secured
    by a fixed and floating charge debenture of $30,000,000 over all of the
    property and assets of the Corporation. The facility is subject to an
    annual borrowing base review with the next annual review due on April 30,
    2008.

    
                         Wrangler West Energy Corp.
                             Notes to the Interim
                             Financial Statements
           Three and nine months ended September 30, 2007 and 2006
                                 (unaudited)

    3.  SHARE CAPITAL

        (a) Stock options

            Common share options outstanding at September 30
            -----------------------------------------------------------------
            -----------------------------------------------------------------
                                                                        2007
            Outstanding, beginning of period                         865,000
            Granted                                                  397,000
            -----------------------------------------------------------------
            Outstanding, end of period                             1,262,000
            -----------------------------------------------------------------
            -----------------------------------------------------------------

            On January 26, 2007, the Corporation granted 12,000 options to
            purchase common shares at $8.00 per common share and, on
            May 22, 2007, further granted 385,000 options to purchase common
            shares at $8.25 per common share.

            The Corporation estimated the fair value of each stock option
            grant on the grant date using the Black-Scholes option-pricing
            model. Assumptions used a risk free interest rate of 4 percent
            with volatility of 45 percent over the expected stock option life
            of five years resulting in a weighted average fair value of $2.94
            for employees and $6.60 for non-employees.

        (b) Contributed surplus

            The table below provides a reconciliation of contributed surplus
            for the period ended September 30, 2007.

            -----------------------------------------------------------------
            -----------------------------------------------------------------
                                                                        2007
            Balance, beginning of period                         $ 2,053,479
            Stock - based compensation cost                          890,235
            -----------------------------------------------------------------
            Balance, end of period                               $ 2,943,714
            -----------------------------------------------------------------
            -----------------------------------------------------------------

        (c) Per share amounts

            For the nine months ended September 30, 2007, the weighted
            average common shares outstanding used in calculating net
            earnings per share were 6,360,827 basic and 6,870,125 diluted
            (September 30, 2006 - 6,360,827 basic and 6,591,116 diluted). The
            calculation of diluted common shares for the nine months ended
            September 30, 2007 excluded 397,000 options, as they were anti-
            dilutive.
    

    Reader Advisory

    This document contains forward-looking statements, such as those relating
to results of operations and financial condition, capital expenditures,
financing, commodity prices, costs of production and the magnitude of oil and
natural gas reserves. By their nature, forward-looking statements are subject
to numerous risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, actual results may differ
materially from those predicted. The forward-looking statements contained in
this report are as of November 15, 2007 and are subject to change after that
date. Assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise
and, as such, readers should not rely unduly on forward-looking statements.
Except as required by law, Wrangler West Energy Corp. disclaims any intention
or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.

    Wrangler West Energy Corp. trades on the TSX Venture Exchange under the
symbol "WX".

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.





For further information:

For further information: Steven F. Johnson, President and Chief
Executive Officer, Steve@wranglerwest.ca, telephone: (403) 290-6800; or JoAnne
M. Dorval-Dronyk, Chief Financial Officer, JoAnne@wranglerwest.ca, telephone:
(403) 290-6807

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