Iteration Energy Ltd. Announces Operational Update

    CALGARY, Jan. 28 /CNW/ - Iteration Energy Ltd. ("Iteration" or the
"Company") (TSX: ITX) is pleased to provide an update on fourth quarter 2008
and first quarter 2009 operations. The Company's audited financial statements
for the year ended December 31, 2008 will be released in late March, 2009.

    Fourth Quarter 2008 Highlights

    -   Iteration drilled 14.5 net wells during the fourth quarter of 2008,
        which resulted in 7.5 gas wells, 6.0 oils wells and 1.0 dry and
        abandoned, representing a success rate of 93%

    -   The Company's fourth quarter capital program was reduced to reflect
        the continued softening of commodity prices. As a result, 5 fewer
        wells were drilled during the fourth quarter of 2008 than predicted
        in the last corporate guidance dated December 10, 2008.

    -   Average production for the fourth quarter of 2008 is expected to be
        on guidance at 18,000 boed.

    -   Current production is approximately 18,800 boed, with 700 boed
        temporarily not on production. A further 2,450 boed is completed
        behind pipe. Production from those wells will be somewhat capacity
        restricted but is expected to be over 1000 boed after the initial
        flush production.

    -   Funds flow for October and November of 2008 were approximately
        $20 million or $0.12 per basic common share. Preliminary fourth
        quarter results are expected in mid February 2009.

    -   Net debt at November 30, 2008 was approximately $263 million.

    Commodity prices have continued to fall since the Company's last guidance
on December 10, 2008. Iteration now expects to drill less than 10 net wells
during the first quarter of 2009, rather than the 24 net wells previously
predicted. This, combined with the reduced fourth quarter 2008 drilling
program, will result in slower production growth for the Company.
    To date Iteration has drilled 4 net wells in 2009 and two more wells are
currently drilling. We expect very little further drilling during the first
quarter of 2009, unless commodity prices strengthen significantly.
    The combined production rate from the 4 net wells completed to date in
2009 is approximately 1,500 boed. The expected production from these wells,
after initial flush volumes and capacity restrictions, is approximately 800
    Iteration will provide updated guidance for the first half of 2009 in the
next few weeks, once the remaining wells in the first quarter 2009 drilling
program have been completed.
    A copy of the latest corporate presentation is available on the Company's
website at

    %SEDAR: 00002576E

For further information:

For further information: Iteration Energy Ltd., Brian Illing, President
and CEO, (403) 261-6883

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