Alberta Clipper Energy Inc. (ACN - TSX) Announces Financial, Reserve and Operating Results for the Year-Ended December 31, 2007


    CALGARY, March 18 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper"
or the "Company") advises today that it has filed its audited financial
statements and related management's discussion and analysis for the year ended
December 31, 2007 on and Certain
selected financial and operational information for the years ended
December 31, 2007 and December 31, 2006 is set out below and should be read in
conjunction with Alberta Clipper's audited financial statements and related
    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
to one barrel of oil.

                                                             Year-     Year-
                                                             ended     ended
                                                           Dec. 31,  Dec. 31,
                                                              2007      2006
    Financial ($000's, except per share amounts)
    Petroleum and natural gas sales                         43,966    24,544
    Funds generated by operations(1)                        22,734    12,525
      Per share basic                                         0.44      0.34
      Per share diluted                                       0.44      0.33
    Net loss                                                (3,053)   (1,234)
      Per share basic                                        (0.06)    (0.03)
      Per share diluted                                      (0.06)    (0.03)
    Capital expenditures                                    46,180    71,517
    Acquisitions, net of dispositions                       72,289         -
    Net debt and working capital surplus (deficiency)      (40,974)  (12,954)


      Crude oil and natural gas liquids (Bbls per day)         937       441
      Natural gas (Mcf per day)                              8,174     5,554
      Barrels of oil equivalent (Boe per day, 6:1)           2,300     1,367
    Average realized price
      Crude oil and natural gas liquids ($ per Bbl)          69.63     67.20
      Natural gas ($ per Mcf)                                 6.75      6.77
      Barrels of oil equivalent ($ per Boe, 6:1)             52.38     49.19
    Netback per Boe (6:1) ($)
      Petroleum and natural gas sales                        52.37     49.19
      Royalties                                              (9.90)    (9.58)
      Operating expenses                                     (9.81)    (9.69)
      Transportation expenses                                (0.67)    (0.99)
    Operating Netback                                        31.99     28.93

    Undeveloped land holdings (net acres)                  186,719   215,972

    Common Shares (000's)
    Shares outstanding, end of period                       56,473    40,869
    Weighted average shares, diluted                        52,169    37,545

    (1) Management uses funds generated by operations to analyze operating
        performance and leverage. Funds generated by operations as presented
        do not have any standardized meaning prescribed by Canadian GAAP and
        therefore it may not be comparable with the calculation of similar
        measures for other entities.

    In 2007, the Company's accomplishments include:
        -  Increased cash flow by 82% and cash flow per share by 31%
        -  Increased production by 68% and production per share by 21%
        -  Increased reserves by 63% and reserves per share by 17%
        -  Replaced production by 386% on a proved basis and 536% on a proved
           plus probable basis
        -  Completed the construction of a new sour oil battery in Sylvan

    Alberta Clipper increased the production base of the Company from
1,367 boe/d in 2006 to 2,300 boe/d in 2007, an increase of 68% while
increasing its reserve base by 63% to 9.4 MMboe. The increases are all due to
dramatic growth in Alberta Clipper's core areas where the Company continued to
invest in drilling and infrastructure and was successful in closing 2
strategic acquisitions. Operations during 2007 were focused in Western Alberta
("WAB") and Northeast British Columbia ("NEBC").
    Alberta Clipper drilled 19 (10.4 net) wells in 2007 resulting in 6 oil
wells, 7 gas wells and 2 service wells. Overall, the Company experienced a 79%
commercial success rate for the year and operated 74% of its drilling program.
    Expansion activities within the Company's core areas continued during the
year with over 5,000 acres of land being acquired in the WAB core area. All
acquired parcels had been posted by Alberta Clipper and contained drill-ready
prospects defined on the Company's 3D seismic data. New 3D seismic data
acquired through the year totaled 130 square kilometers, bringing the
Company's total 3D seismic coverage to over 3,300 square kilometers. Existing
3D data on an emerging asset in WAB has yielded two successful wells in the
first quarter. New 3D seismic data in the Rycroft area has been used to
high-grade 12 new high-impact exploration targets on Company lands with
multi-zone potential. In Sylvan Lake, Alberta Clipper continues to employ its
extensive seismic database to identify drilling opportunities in Cretaceous,
Mississippian and Devonian aged strata. The Company's total opportunity
inventory count now stands at 159, of which 42% of the opportunities are
exploratory and 58% are development.
    During the fourth quarter, Alberta Clipper's drilling program included a
new Leduc discovery at 9-36-38-4W5 ("9-36") and a Falher discovery at
7-31-70-10W6 ("7-31"). The 9-36 well, in which the Company holds a 100%
working interest ("W.I."), is currently on production at a rate of 200 boe/d.
The 7-31 well was brought on production in December at an initial rate of 300
boe/d from the Falher Formation. Alberta Clipper holds a 21% working interest
in the well. In addition, during the fourth quarter of 2007 Alberta Clipper
drilled a further infill well into the Leduc B Pool at 12-4-38-4W5 that is on
production at 150 boe/d net to the Company.

    Alberta Clipper averaged 2,300 boe/d for the year ended December 31,
2007, a 68% increase over the year ended December 31, 2006 average of
1,367 boe/d.

    The Company exited 2007 with the following inputs in estimating its net
asset value:

                                       GLJ at    GLJ at   Strip at  Strip at
                                         Dec       Dec       Mar       Mar
                                        31/07     31/07     10/08     10/08
     (M$)                               PV 8%     PV 10%    PV 8%     PV 10%
    NPV - P+P (GLJ Report)             210,695   195,951   264,826   245,814
    Undeveloped Land (186,719 acres)    37,930    37,930    37,930    37,930
    Net debt and working capital       (40,974)  (40,974)  (40,974)  (40,974)
    Outstanding Shares (basic)          56,473    56,473    56,473    56,473
    NAV/Basic Share                      $3.68     $3.42     $4.64     $4.30

    Alberta Clipper's independent reserve analysts have prepared a
sensitivity analysis on the effect on the net present value of the Company's
existing reserves under the new royalty scheme as proposed by the Alberta
government. The analysis shows that the net present value would be negatively
affected by less than 5%. The greatest impact of the proposed royalty
framework is on future drilling where the initial realized royalty rates can
increase by nearly 100% on prolific new exploratory oil wells and
approximately 40% on prolific new gas wells.

    In accordance with National Instrument 51-101 - Standards of Disclosure
for Oil and Gas Activities (NI 51-101), GLJ Petroleum Consultants Ltd. ("GLJ")
prepared the Alberta Clipper Report. The Alberta Clipper GLJ Report evaluated,
as at December 31, 2007, 100% of Alberta Clipper's oil, natural gas liquids
and natural gas reserves. Reserves information may not add due to rounding. A
full disclosure of Alberta Clipper's reserves can be found in the Annual
Information Form on
    Based on the year-end 2007 independent reserves report, Alberta Clipper
added 3.2 million proven Boe and 4.5 million proven-plus-probable Boe.
Reserves additions replaced production by 386% on a proved basis and 536% on a
proved-plus-probable basis in 2007.

          Summary of Total Company Interest Oil and Gas Reserves(1)
                           as at December 31, 2007
                          Forecast Prices and Costs
                                                          Natural     Total
                                     Light and   Natural    Gas        Oil
                                    Medium Oil     Gas    Liquids  Equivalent
    Reserve Category                   (Mbbl)    (MMcf)    (Mbbl)    (Mboe)
    Developed Producing                  1,512    15,543       445     4,547
    Developed Non-Producing                127     2,079        52       526
    Undeveloped                            236     1,806        58       595

    Total Proved                         1,874    19,428       556     5,669

    Probable                             1,275    13,166       299     3,768

    Total Proved Plus Probable           3,149    32,594       855     9,437

             Reconciliation of Total Company Interest Reserves(1)
                   Light                        Natural Gas
              and Medium Oil     Natural Gas      Liquids          Total

                       Proved          Proved          Proved          Proved
                        Plus            Plus            Plus            Plus
                        Prob-           Prob-           Prob-           Prob-
               Proved   able   Proved   able   Proved   able   Proved   able
               (mbbl)  (mbbl)  (mmcf)  (mmcf)  (mbbl)  (mbbl)  (mboe)  (mboe)
     (Dec. 31,
     2006)       845   1,302  12,727  23,767     305     519   3,272   5,783
    Discoveries  159     388      52     181       5      18     173     436
    Extensions   101     407   3,396   5,135     116     175     783   1,438
     recovery      -      48       -      57       -       2       -      59
    Acquisitions 987   1,218   7,927  10,315     249     324   2,557   3,262
    Revisions     45      49  (1,666) (3,767)    (46)   (110)   (279)   (690)
     factors       6       7     (25)   (111)      -      (1)      2     (12)
    Production  (269)   (269) (2,983) (2,983)    (73)    (73)   (839)   (839)

    Dec. 31,
     2007      1,874   3,149  19,428  32,594     556     855   5,669   9,437
    (1) Based on gross reserves meaning the total company interest (operated
        and non-operated) share before deduction of royalties payable to
        others and including royalty interests of the Corporation.

    Alberta Clipper incurred expenditures of $118.4 million in 2007, of which
$72.2 million was spent on two strategic property acquisitions in one of the
Company's core operating areas. Capital associated with infrastructure
expansion was $8.0 million and another $5.0 million was spent on land and
seismic activity. As a result, over 28% of the 2007 operating capital program
was related to pre-investment projects where reserve value will be recognized
in later periods.

    Finding and development costs (Total Proved plus Probable) excluding
central facility capital and prior to revisions were $19.66/boe. Central
facility pre-investment capital has positioned the Company with a dominant
position in each of its core assets which should allow for lower reserves
additions costs over the longer term. NI 51-101 specifies how finding and
development costs should be calculated if they are reported. Essentially NI
51-101 requires that the exploration and development costs incurred in the
year along with the change in estimated future development costs be aggregated
and then divided by the applicable reserve additions.

                                                            Proved  Probable
    2007 Capital Expenditures                                   (2)       (2)

    Capital costs ($ thousands)
      Exploration & development drilling &
       associated costs                                     33,000    33,000
      Land and seismic                                       5,000     5,000
      Central Facilities                                     8,000     8,000
      Acquisitions                                          72,200    72,200
      Change in future development costs(1)                 (1,500)      700
      Total                                                116,700   118,900

    2007 Reserve Additions(2) (MBOE)
    Exploration and development                                956     1,933
    Acquisitions                                             2,557     3,262
    Revisions                                                 (277)     (702)
    Total                                                    3,236     4,493

    2007 Finding & Development Costs ($/BOE)
    Operations including future capital(3)                   46.55     24.16
    Operations excluding future capital(3)                   48.12     23.80

    Acquisitions including future capital(4)                 27.65     22.35
    Acquisitions excluding future capital(4)                 28.24     22.13

    Corporate including future capital(5)                    36.06     26.46
    Corporate excluding future capital(5)                    36.53     26.31

    (1) The aggregate of the exploration and development costs incurred in
        the most recent financial period and the change during that period in
        estimated future development costs generally will not reflect total
        finding and development costs related to reserve additions for that
    (2) Based on gross reserves meaning the total company interest (operated
        and non-operated) share before deduction of royalties payable to
    (3) Excludes revisions
    (4) Based on allocation of acquisitions to property, plant and equipment
    (5) Includes revisions

    2007 Breakdown of Finding & Development Costs excluding Future Capital &
    Revisions ($/BOE)

                                                            Proved  Probable
    Exploration & development drilling &
     associated costs                                        34.51     17.07
    Land and seismic                                          5.24      2.59
    Sub-total                                                39.75     19.66
    Central Facilities                                        8.37      4.14
    Total                                                    48.12     23.80

    In the fourth quarter the Company drilled 6 (3.7 net) wells, resulting in
1 (0.2 net) gas well and 3 (2.5 net) oil wells. For the year 2007 the Company
drilled 19 (10.4 net) wells resulting in 7 (3.2 net) gas wells, 6 (4.5 net)
oil wells and 2 (0.7 net) service wells. Of the 19 wells drilled in 2007,
14 were exploratory in nature and 5 were development.

    Cash flow from operations for the year ended December 31, 2007 was
$22.7 million ($0.44 per basic share), an 82% increase from the year ended
December 31, 2006 cash flow of $12.5 million ($0.34 per basic share).

    Alberta Clipper exited 2007 with a net debt and working capital deficit
of $41 million, made up of $2.7 million in negative working capital and
$38.3 million in debt. Current bank lines are $55 million.

    Alberta Clipper's undeveloped land holdings as at December 31, 2007 were
186,719 acres.

    Net Undeveloped Acreage Summary:
    Western Alberta (WAB)                                             92,897
    Central Alberta (CAB)                                             43,775
    Northeast British Columbia (NEBC)                                 50,047
    Total Net Undeveloped Acres                                      186,719

    Alberta Clipper has a well-defined strategy for future growth as the
Company surpasses the 3,000 boe/d milestone. The Management and Board of
Alberta Clipper have implemented three strategic initiatives that will
facilitate this growth, which include:

    -   Increasing the Company's participation in "scalable development"
        projects that employ leading-edge recovery-optimization technologies
    -   Continuing the Company's participation in high impact, repeatable
        exploration plays discernable on 3D seismic
    -   Accelerating enhanced oil recovery (EOR) initiatives to exploit the
        Company's large oil-in-place reservoirs

    In January of 2008 Alberta Clipper released its capital budget for the
first 6 months of 2008. This half-year budget projected drilling 6 wells and
undertaking 11 re-completions during the first 6 months of the year.
Additional capital during this period was allocated to pursuing acquisitions
that conform to the above mentioned strategic initiatives. Pending
clarification of the Alberta Government's New Royalty Framework, the Company
has potential to expand its drilling program to a total of 25 wells (12.8 net)
for the year.
    To date in 2008, 4 wells have been drilled and cased including a new-pool
multi-zone discovery and follow-up development well in an emerging asset
within our Western Alberta core area, and 2 development successes at Sylvan
Lake. The new pool discovery is expected to be brought on-stream at 200 boe/d
net to Alberta Clipper by the end of March. The delineation well, located
adjacent to the discovery well, is cased awaiting completion and testing.
Alberta Clipper currently holds 11.75 sections of land on the play with
interests ranging between 25% - 50%. In addition, all Company lands are
covered by 3D seismic data.
    A development well in the Leduc B pool at Sylvan Lake, in which the
Company holds a 50% working interest, is currently being completed and tested
while the second development well (7% W.I.) is awaiting completion. The
remaining 2 wells for the first half of the year will be drilled at Rycroft
and Sylvan Lake. The Rycroft well which is currently drilling is exploratory
in nature and is targeting multiple zones on a seismically defined structure.
The remaining activity at Sylvan Lake consists of a horizontal development
well that will be targeting a Cretaceous oil zone.
    The continued operational success being experienced by the Company
validates Management's commitment to its core area focus and a defined plan.
Alberta Clipper's growth over the upcoming years will be focused on its stated
cornerstones for growth. Many of the building blocks are in place for the
execution of this strategy as the Company continues to expand in these key
areas. In this regard, Alberta Clipper has been successful in increasing its
interest in the Trutch asset to 80% from 60% through acquiring partner
interests at very attractive metrics. The Trutch property is an example of a
scalable gas development project where the Company will be drilling its first
fracture stimulated horizontal well during the second half of the year. With
success, the Company has a large inventory of follow-up horizontal locations
on the 33 section land block.
    Alberta Clipper is also undertaking two additional projects during the
first quarter of 2008 that will be testing the feasibility of newly identified
scalable development opportunities. These projects, if successful, have
significant positive implications for the development of new technology driven
plays in the Company's core operating areas. The Company has identified a
number of these opportunities and continues to position on these plays.
    Alberta Clipper will continue to focus on assets that fit within its
stated growth strategy. The Company's exposure to sizable "resource in-place"
pools coupled with the strong cash flows being realized from the high netback
product mix, position the Company for significant growth in 2008.

    Alberta Clipper's Annual Meeting is scheduled for 2:30 pm on Tuesday,
May 13, 2008 in the Barclay Room at the Bow Valley Conference Centre, 205 -
5th Avenue SW, Calgary, Alberta.

    As referred to above, to view Alberta Clipper's audited financial
statements and related MD&A for the years ended December 31, 2007 and
December 31, 2006 please visit our web site at or To the extent investors do not have access to the internet,
copies of the audited financials and related MD&A can be obtained on request
without charge by contacting Alberta Clipper at (403) 440-3474 or at 1800,
500-4th Avenue SW, Calgary, Alberta, T2P 2V6.

    Alberta Clipper Energy Inc. is a publicly traded Canadian energy company
involved in the exploration, development and production of natural gas and
crude oil in western Canada.


    This press release may contain forward-looking statements including
expectations of future production, cash flow and earnings. More particularly,
this press release contains statements concerning Alberta Clipper's future
production estimates, expansion of oil and gas property interests, exploration
and development drilling, seismic operations, regulatory applications, payout
estimates, capital expenditures, number and drilling locations to be drilled
in 2008, seismic acquisitions and facilities upgrades. These statements are
based on current expectations that involve a number of risks and
uncertainties, which could cause actual results to differ from those
anticipated. These risks include, but are not limited to: the risks associated
with the oil and gas industry (e.g., operational risks in development,
exploration and production; delays or changes in plans with respect to
exploration or development projects or capital expenditures; the uncertainty
of reserve estimates; the uncertainty of estimates and projections relating to
production, costs and expenses, and health, safety and environmental risks),
commodity price, price and exchange rate fluctuation and uncertainties
resulting from potential delays or changes in plans with respect to
exploration or development projects or capital expenditures. Additional
information on these and other factors that could affect Alberta Clipper's
operations or financial results are included in Alberta Clipper's reports on
file with Canadian securities regulatory authorities.
    The forward-looking statements or information contained in this news
release are made as of the date hereof and Alberta Clipper undertakes no
obligation to update publicly or revise any forward-looking statements or
information, whether as a result of new information, future events or
otherwise, unless so required by applicable securities laws

    Oil and Gas Advisory
    This press release contains disclosure expressed as "Boe/d". All oil and
natural gas equivalency volumes have been derived using the ratio of six
thousand cubic feet of natural gas to one barrel of oil. Equivalency measures
may be misleading, particularly if used in isolation. A conversion ratio of
six thousand cubic feet of natural gas to one barrel of oil is based on an
energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the well head.

    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release. Not for
    distribution to U.S. newswire services or for dissemination in the United
    States. Any failure to comply with this restriction may constitute a
    violation of U.S. securities law.

    %SEDAR: 00022458E

For further information:

For further information: Kel Johnston, President & C.E.O., Alberta
Clipper Energy Inc., Telephone: (403) 440-3474, Facsimile: (403) 440-3475,

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