Alberta Clipper Energy Inc. (ACN - TSX) Announces Third Quarter Results

    CALGARY, Nov. 8 /CNW/ - Alberta Clipper Energy Inc. ("Alberta Clipper" or
the "Company") is pleased to announce that it has filed its unaudited
financial statements and related management's discussion and analysis for the
three and nine months ended September 30, 2007 on
and Certain selected financial and operational information for
the three and nine months ended September 30, 2007 and September 30, 2006
comparatives are set out below and should be read in conjunction with Alberta
Clipper's unaudited financial statements and related MD&A.
    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.

                             CORPORATE HIGHLIGHTS

                     Three months   Three months   Nine months   Nine months
                            ended          ended         ended         ended
                          Sept 30,       Sept 30,      Sept 30,      Sept 30,
    (Unaudited)              2007           2006          2007          2006
     ($000's, except
     per share amounts)
    Petroleum and
     natural gas sales     12,003          7,041        30,794        17,696
    Funds generated by
     operations(1)          6,373          3,321        15,590         9,130
      Per share basic        0.11           0.09          0.31          0.26
      Per share diluted      0.11           0.09          0.31          0.25
    Net loss                 (288)          (302)       (1,972)         (325)
      Per share basic       (0.01)         (0.01)        (0.04)        (0.01)
      Per share diluted     (0.01)         (0.01)        (0.04)        (0.01)
    Capital expenditures    7,537         17,562        38,521        50,266
    Acquisitions, net
     of dispositions           31              -        72,154             -
    Net debt and working
     capital surplus
     (deficiency)         (40,405)       (18,459)      (40,405)      (18,459)

      Crude oil and
       natural gas
       liquids (Bbls
       per day)             1,102            536           852           396
        Natural gas
         (Mcf per day)      9,080          6,081         8,154         5,618
        Barrels of oil
         (Boe per day, 6:1) 2,615          1,550         2,211         1,332
    Average realized price
      Crude oil and
       natural gas liquids
       ($ per Bbl)          71.91          73.02         67.31         70.42
        Natural gas
         ($ per Mcf)         5.64           6.15          6.80          6.57
        Barrels of oil
         ($ per Boe, 6:1)   49.89          49.39         51.02         48.65
    Netback per Boe
     (6:1) ($)
      Petroleum and
       natural gas sales    49.89          49.39         51.02         48.65
      Royalties             (8.48)        (10.94)       (10.14)       (10.43)
      Operating expenses    (9.09)         (9.85)        (9.52)        (7.96)
       expenses             (0.55)         (1.17)        (0.75)        (0.96)
    Operating Netback       31.77          27.43         30.61         29.30

    Undeveloped land
     holdings (net
     acres)               190,888        225,895       190,888       225,895

    Common Shares (000's)
    Shares outstanding,
     end of period         56,473         36,702        56,473        36,702
    Weighted average
     shares, diluted       57,142         37,668        50,517        35,908
    (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.


    -   Increased third quarter production to an average rate of 2,615
        boe/day, representing a 69% increase over the third quarter of 2006
        and a 16% increase over the second quarter of 2007

    -   Increased cash flow to $6.4 million, representing a 92% increase over
        the third quarter of 2006

    -   Participated in the drilling of 4 wells resulting in a 100% success
        rate and the addition of significant production volumes that are
        expected to be tied-in prior to year-end

    -   Initiated re-completion operations in the Pekisko I Pool resulting in
        an 80% production increase on the first 2 wells

    Operations Overview

    Alberta Clipper Energy Inc. ("Alberta Clipper" or the "Company") drilled
4 wells in Western Alberta during the third quarter of 2007 resulting in 1 oil
well and 3 gas wells for a success rate of 100%. Drilling activity, by area,
consisted of 2 wells at Sylvan Lake, 1 well in Arvilla and 1 well at Ricinus.
    Highlights of the third quarter drilling program include an Ostracod
discovery at 15-2-39-4W5 ("15-2") and a new Leduc discovery at 10-22-38-4W5
    The 15-2 well tested at a restricted rate of 2.3 MMcf/d at a flowing
tubing pressure of 7,500 kPa from approximately 15 feet of net pay in the
Ostracod Formation. Alberta Clipper operates the well and holds a 71% working
interest. The Company is currently finalizing tie-in routes and expects the
well to be on production at initial rates of up to 3.5 MMcf/d (400 boe/d net)
by the end of the year.
    The 10-22-38-4W5 discovery well ("10-22") tested at a rate of 400 boe/d
from 12 feet of net oil pay in the Leduc Formation. Alberta Clipper operates
the well and holds a 50% working interest. The Company is currently in the
process of obtaining all regulatory approvals required to tie the well into
Alberta Clipper-owned infrastructure. Tie-in is expected to be completed
before the end of the year. The well will be subject to a Maximum Rate
Limitation ("MRL") as determined by the Alberta Energy and Utilities Board
upon commencement of production.
    Alberta Clipper's new sour oil battery at Sylvan Lake became fully
operational during the third quarter of 2007. This significant new operated
infrastructure will allow continued growth in this core area and will result
in reduced operating expenses in subsequent quarters now that start-up issues
have been completely resolved.
    During the third quarter of 2007, Alberta Clipper added 738 net
undeveloped acres of high-graded land to its exploration inventory in both the
Sylvan and Rycroft areas. The lands are covered by the Company's extensive 3D
seismic database and were acquired for previously identified drillable
prospects. Drilling operations on the newly acquired lands are scheduled for


    Alberta Clipper plans for the fourth quarter of 2007 calls for 5
(3.5 net) wells to be drilled. During the month of October, 2 of the 5 wells
were drilled and cased. Both wells were drilled in the Sylvan Lake area with
one completed as a Leduc well (12-4-38-4W5) and the other cased for Ellerslie
oil (12-30-38-3W5).
    The 12-04-38-4W5 Leduc development well ("12-04") tested at a restricted
rate of 380 boe/d from a 13 foot barefoot section within a pool that exhibits
over 158 feet of Leduc oil pay. The barefoot technique was employed for the
first time in this pool in an attempt to maximize oil recovery in this large
oil-in-place reservoir that is currently exhibiting less than a 10% recovery
factor. Alberta Clipper is operator and holds a 50% working interest in the
well. The well is expected to be on production by the end of the year and is
not subject to MRL limitations.
    In addition to the aforementioned tests, Alberta Clipper is currently
completing a new Ellerslie oil discovery located at 12-30-38-3W5. ("12-30").
Again, with successful test results it is expected that this well will be on
production by the end of the year. Alberta Clipper holds a 100% working
interest in the 12-30 well.
    The third well for the fourth quarter is currently drilling and is
expected to reach total depth in November. This well at 12-18-34-4W5 is
targeting an Elkton gas prospect in the greater Sylvan Lake (Caroline) area.
The final 2 wells remaining for the year will be drilled at Rycroft and Sylvan
Lake. The Rycroft well at 13-18-78-4W6 is targeting a Wabamun gas prospect
with multi-zone potential. The Sylvan Lake well at 9-36-38-4W5 is targeting a
Leduc Pinnacle reef prospect.
    Re-completion operations during the fourth quarter have focused on
optimizing assets acquired over the course of the year. Multiple wells are
being re-worked to increase perforation intervals in existing zones and to
complete additional zones in the existing wellbores. Two wells in the Pekisko
I Pool have been re-worked to increase perforation intervals and the initial
results show an 80% increase in production. Additional wells in this pool, and
other pools, are planned to be re-worked prior to quarter end.
    Although a portion of Alberta Clipper's growth will continue to come from
its Sylvan Lake Leduc exploration program, the proposed royalty scheme does
not provide the same risk-reward return across the entire portfolio of
single-zone Leduc exploration targets. The Company, however, has a large
number of shallow prospects, which have been seismically identified on
third-party lands held by deeper production in the Sylvan Lake area. With the
recently announced proposal for shallow-rights-reversion, many of the
identified shallow opportunities within this area will revert back to the
crown for inclusion in future Crown land sales. The Sylvan Lake exploration
program will over time move from being largely a single-zone play to a stacked
multi-zone play with over 10 potential horizons. Alberta Clipper's extensive
3D seismic data set and infrastructure base will continue to provide the
Company with an exploration advantage in targeting these new opportunities.
    The continued operational success being experienced by the Company
validates Management's commitment to core area focus and consolidation. The
benefits of a large land accumulation strategy, accompanied by substantial
pre-investment in what is now a significant infrastructure network, will
provide the Company with a solid base for future profitable growth. Management
expects that despite the negative factors currently facing the junior oil
industry, this long-term strategy and the results it will produce will
eventually be recognized in the market.

    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.
    As referred to above, to view Alberta Clipper's unaudited financial
statements and related MD&A for the three and nine months ended September 30,
2007 please visit 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
Investor Relations at (403) 440-3474 or at 1800, 500 - 4th Avenue SW, Calgary,
Alberta, T2P 2V6.


    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 2007, 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 Energy'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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