Anterra Announces Third Quarter Results, Drilling of Second Judy Creek Well and Receipt of McLeod Drilling License


    TSXV Symbol: AE.A and AE.B
    30,365,606 Class A Shares
    753,014 Class B Shares

    CALGARY, Nov. 29 /CNW/ - Anterra Energy Inc. ("Anterra" or the "Company")
today reported its financial and operating results for the three and nine
month periods ended September 30, 2007 and provides an operational update.


    -   The first high impact Devonian Swan Hills reef at LSD 09-19-62-11W5M
        in Judy Creek was drilled and placed on production and the second
        well at LSD 14-20-62-11W5M is now drilling.
    -   Subsequent to the end of the quarter, the Company received its well
        license for the McLeod 14-20-55-14W5M re-entry.
    -   Two oil wells were placed on production at Frontier in southwest
    -   Funds flow from operations increased 47 percent to $502,189 for the
        third quarter compared to $340,721 for the same quarter of 2006, and
        increased 63 percent to $1,255,686 for the nine month period,
        compared to $772,689 for the same period in 2006.
    -   Daily production volumes increased 26 percent to 277 boepd for the
        quarter (65 percent light oil and 35 percent sweet gas) compared to
        219 boepd for the same period last year.
    -   The Company raised gross proceeds of $2.11 million in "flow-through"
        common shares. The offering was completed on a bought-deal private
        basis by way of the issuance of 3,518,332 Class A shares at a price
        of $0.60 per share.


                      Three Months  Three Months   Nine Months   Nine Months
                         September     September     September     September
                          30, 2007      30, 2006      30, 2007      30, 2006
    Oil and Gas
    Revenue              1,673,343     1,229,046     4,276,030     3,782,560
    Royalties             (134,676)      (99,763)     (348,547)     (357,188)
    Gross overriding
     royalties               2,832         1,999         6,331         7,280
    Net revenue          1,541,499     1,131,282     3,933,814     3,432,652
    Operating costs        696,660       534,542     1,670,363     1,488,227
    Oil and gas
     operating margin      844,839       596,740     2,263,451     1,944,425

    Midstream Processing
    Revenue                325,793       242,968       866,496       641,658
    Operating costs        196,419       210,759       564,392       682,344
    Midstream operating
     margin                129,374        32,209       302,104       (40,686)

    Intersegment revenue
     and cost              (44,056)      (41,515)     (139,097)     (155,741)

    Total Net Revenue    1,823,236     1,332,735     4,661,213     3,918,569
    Total Operating
     Costs                 849,024       703,786     2,095,659     2,014,830
    Total Operating
     Margin                974,212       628,949     2,565,554     1,903,739

    General and
     administration        437,042       267,648     1,127,391       932,163
    Stock compensation      10,282         6,929        97,408        56,492
    Interest                34,981        60,590       182,477       143,181
     accretion             601,581       474,244     1,436,565     1,157,741
    Total Expenses       1,083,886       809,411     2,843,841     2,289,577

    Net Loss Before
     Tax                  (109,674)     (180,462)     (278,287)     (385,838)
    Provision For Taxes    (61,660)      (98,571)      (93,772)     (128,363)
    Net Loss               (48,014)      (81,891)     (184,515)     (257,475)

    Earnings per Class
     A share
    Basic                   (0.002)       (0.005)       (0.009)       (0.017)
    Fully Diluted           (0.001)       (0.005)       (0.006)       (0.017)
    Weighted Average
     Number of Class A
     Shares In
     Thousands          25,483,100    15,910,188    20,683,700    15,110,875

    Funds Flow From
     Operations            502,189       340,721     1,255,686       772,689
    Funds Flow Per
     Class A Share           0.020         0.021         0.061         0.051
    Note:  comparative share numbers restated to reflect Class A share
           conversion factor.


    Anterra's funds flow from operations increased 62 percent to $1,255,686
($0.06 per share) for the nine months ended September 30, 2007, compared to
$772,689 ($0.05 per share) for the same period in 2006. Funds flow from
operations increased 46 percent to $502,189 for the third quarter ended
September 30, 2007 compared to $340,721 for the same period in 2006. Operating
netbacks for oil and gas production for the quarter were $33.01 compared to
$29.54 for the third quarter of 2006. Operating netbacks for midstream
operations were $2.26 per cubic metre compared to $0.87 per cubic metre for
the same period in 2006. For the third quarter the Company experienced a loss
of $48,014, compared to a loss of $81,891 for the same period last year. For
the nine month period, the Company experienced a loss of $184,515 compared to
a loss of $257,475 for the same period last year.


    The third quarter of 2007 was a pivotal quarter for the Company with the
drilling and completion of the Company's first high impact Devonian Swan Hills
reef well LSD 09-19-62-11W5M at Judy Creek. Following drilling, the well was
perforated and stimulated over a three metre interval and placed on
production. After several weeks of production history, it is evident that
additional perforations and further stimulation are needed to achieve optimum
production rates for the well. Due to the lack of suitable water disposal
facilities in the area, these operations will be delayed until the completion
of drilling at the second location at LSD 14-20-62-11W5M when the full impact
on Anterra of the Judy Creek project is assessed. In addition drilling results
should be available before year end at McLeod where the Company recently
received its drilling license for a high impact 160 BCF Devonian reef gas
target. In parallel with these high impact activities, the Company continued
exploitation work on its lower risk development projects at Breton and
Frontier. During the quarter a gas pipeline leak at Breton caused below budget
production as gas production was shut down for 15 days. In spite of this
event, total production from Breton and Frontier continues to increase due to
good drilling results.

    Breton: Anterra continued development of its 100 percent working interest
property at Breton with a Nordegg gas well re-entry and upgrades and repairs
to its gas gathering system following the gas line leak in September. During
the second quarter the Company invested $200,000 in the pressure maintenance
system and commenced water injection in the south end of the field. Early
results indicate that the pressurizing of the reservoir is starting to
positively impact oil production and replace some of the natural production
declines. Further drilling of development wells and water injection wells are
now being proposed for 2008. Production at Breton remains at 250 boepd.

    Southeast Alberta and southwest Saskatchewan: During the quarter, the
Company placed two Shaunavon oil wells into production in southwest
Saskatchewan and there are now three Shaunavon oil producers in the Frontier
area. As the Shaunavon reservoir is under-pressured the field will eventually
require a pressure maintenance scheme to increase well productivity and
recoverable reserves. However, the project is quite profitable and further
development including water injection is planned for 2008. In southeast
Alberta production is stable and one development well is planned for next
year. Production from the two areas is 70 bopd.

    Judy Creek Area: During the quarter Anterra drilled its first exploration
well on the Judy Creek property at LSD 09-19-62-11W5M. The well targeted the
southern edge of the Devonian Swan Hills reef formation which was determined
from the 3-D seismic program run during the first quarter of 2007. The well
encountered seven metres of oil saturated interval and was completed and
stimulated in the upper three metres of pay. The final swab rate for the well
was three cubic metres (3 m3) of fluid per hour with an average oil cut of 99
percent (450 bopd). The well initially produced clean oil with large
quantities of gas but due to near well bore damage, production volumes have
since declined to 10 cubic metres (10 m3) per day of total fluid with a 60
percent water cut (25 bopd). Management intends to re-enter the well-bore and
perforate a further 4 metres of the formation and selectively acidize the full
seven metre interval. Due to the lack of infrastructure in the area and the
need to truck large volumes of fluid for processing and disposal, the well
will be produced under present conditions until results of the second well are
in. Anterra has a 100 percent interest in the second well at LSD
14-20-62-11W5M which is now drilling and results will be released once the
well has been logged and tested.
    West of Judy Creek at Sakwatamau, the Company has farmed out 80 percent
of its interest in the LSD 06-32-62-14W5M Shunda exploration well which is
scheduled to drill prior to year end. The Company's working interest in this
1,800 metre test is 20 percent before payout converting to 60 percent after
payout. Anterra has a full section of land over the prospect and a successful
well at LSD 06-32-62-14W5M will establish several development locations. At
Sakwatamau, Anterra owns a 100 percent interest in a pipeline connected
processing and disposal facility. Any oil production from this exploratory
well will be trucked to this facility.

    McLeod: All of the regulatory requirements for the McLeod sour natural
gas project have now been met and the Company received its drilling license on
November 28, 2007. Anterra's interest in this 3,300 metre well re-entry at LSD
14-20-55-14W5M is 52.5 percent before payout reducing to 31.5 percent after
payout. The 160 BCF natural gas target in the Devonian Swan Hills formation
has been defined by 3-D seismic. Anterra is earning its interest in the two
section project by deepening a recently drilled and cased 2,450 metre well by
800 metres to a total depth of 3,300 metres. Anterra has had discussions with
an adjoining sour gas processor and contemplates running a five mile gas line
to the gas plant, should the test be successful.


    During the first nine months of the year, the Company executed on its
plan to generate cashflow from its lower risk development projects at Breton
and Frontier and from its midstream operations, while at the same time
progressing its high impact projects at Judy Creek, McLeod and Crooked Lake.
Development at Breton and Frontier has been successful but both require
further drilling of development wells, water source wells and water injection
wells to allow higher oil production and recovery rates. Management has
proposed the drilling of up to six development wells and several water
injection wells on the properties for 2008. At Judy Creek, the Company is
proposing five development wells, the construction of a processing facility
and further 3-D seismic for 2008, subject to satisfactory results from the LSD
14-20-62-11W5M well and prior approval of these plans by its board of
directors. At McLeod the deep gas well re-entry at LSD 14-20-55-14W5M is about
to commence and results will be press released prior to year end.
    Over the past twelve months, several factors have affected the market
conditions for the oil and gas industry in western Canada, including the
federal government's tax changes for royalty trusts and the more recent
Alberta government's changes to the royalty regime. With the emergence of
global warming as a political reality, more regulatory changes are expected in
2008. These risk factors lead to the recognition that a company needs size to
allow it to mitigate at least some of the affects of the changing environment.
As a result, the Company is actively considering corporate and asset
acquisitions to complement its internal production growth and to spread the
risks associated with its high impact drilling projects over a much larger
production base.
    Anterra's 2007 third quarter consolidated financial statements and
related MD&A are available on Anterra's website at as
well as on the SEDAR website at
    Funds flow from operations is not a recognized measure under Canadian
generally accepted accounting principles (GAAP). However, management believes
that funds flow from operations is a useful measure of financial performance.
For the purposes of funds flow from operations calculations, funds flow is
defined as "Funds flow from operations" before changes in non-cash operating
working capital. Anterra's determination of funds flow from operations may not
be comparable to that reported by other companies.
    In this press release, the calculation of barrels of oil equivalent (boe)
is calculated at a conversion rate of 6,000 cubic feet (mcf) of natural gas
for one barrel (bbl) of oil based on an energy equivalency conversion method.
Boes may be misleading particularly if used in isolation. A boe conversion
ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

    Anterra Energy Inc. is an emerging energy company with a balanced
portfolio of high impact exploration and lower risk exploitation projects.
Complementing this strong exploration and development focus, the Company owns
and operates oil and gas production and associated fee-based midstream
facilities in western Canada. Anterra is a public Canadian company listed on
the TSX Venture Exchange under the symbols AE.A and AE.B. More information
about Anterra is available on the internet at


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

    This news release contains forward looking information related to the
planned drilling program, production and operating costs. 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, 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 estimates in relation to reserves, production and expenses; health, safety
and environmental risks; and the uncertainty of dealing with government and
obtaining regulatory approvals). Due to the risks, uncertainties and
assumptions inherent in forward-looking statements, prospective investors in
the company's securities should not place undue reliance on these
forward-looking statements.

    %SEDAR: 00025272E

For further information:

For further information: Owen C. Pinnell, Chairman and Chief Executive
Officer, Anterra Energy Inc., Telephone: (403) 215-2427, Facsimile: (403)
261-6601, E-mail:

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