One Exploration Inc. announces 2009 3rd quarter results, property disposition
and updated banking arrangements

/NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/

CALGARY, Nov. 18 /CNW/ - One Exploration Inc. (the "Corporation" or "OneEx") announces its financial and operating results for the three month period ended September 30, 2009 and provides an update on its current operations.

Financial and Operating Summary

    
                              Three months ended         Nine months ended
                                 September 30              September 30
    -------------------------------------------------------------------------
                                 2009         2008         2009         2008
    -------------------------------------------------------------------------
    Financial highlights ($)

    Petroleum and natural
     gas sales              1,506,817    4,617,866    5,540,970   14,806,481
    Net earnings (loss)    (2,267,450)    (700,994)  (6,284,253)     597,218
    Net earnings (loss)
     per share(i)
      - basic                   (0.04)       (0.02)       (0.11)        0.02
      - diluted                 (0.04)       (0.02)       (0.11)        0.02
    Cash flow                (413,677)   1,460,133   (1,162,610)   5,255,174
    Cash flow per share(i)
      - basic                   (0.01)        0.04        (0.02)        0.14
      - diluted                 (0.01)        0.04        (0.02)        0.14
    Working capital
     (deficit) at period
     end                   (4,525,561)  (8,519,465)  (4,525,561)  (8,519,465)
    Capital expenditures
     and dispositions      (2,749,211)   3,024,645     (522,507)   9,700,907

    Operating

    Production
      Natural gas (mcf
       per day)                 2,036        3,944        2,816        4,136
      Crude oil and
       NGLs (bbls per
       day)                       177          178          166          182
      BOE per day (6:1)           517          835          635          871
    Average realized price
      Natural gas ($ per
       mcf)                      3.01         8.21         4.10         9.04
      Crude oil and NGLs
       ($ per bbl)              52.30        92.77        50.02        87.49
      BOE ($ per boe, 6:1)      31.68        60.09        31.94        62.04
    -------------------------------------------------------------------------
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    (i) Class B common shares are converted to Class A common shares using a
        ratio of $10 divided by the greater of the period end Class A common
        share price and $1. For periods ended June 30, 2009, Class B common
        shares were converted using a Class A common share price of $1. At
        September 30, 2008, the closing Class A common share price was $1.25
        and as such Class B common shares were converted at $1.25 for periods
        ended September 30, 2008.


    Third Quarter Review
    --------------------
    

OneEx carried out limited field activities in the third quarter of 2009 as it continued to focus on cost reduction, cash conservation and balance sheet strength. Net dispositions totaled $2.7 million for the three months ended September 30, 2009. During the quarter ended September 30, 2009 the Corporation successfully disposed of several non-core gas weighted non-operated properties located in Alberta.

Low natural gas prices resulted in Operating netbacks for the third quarter of 2009 of $11.67 per boe, a decrease of 58 percent from $27.68 per boe realized in the second quarter of 2008. Operating netbacks for the nine months ended September 30, 2009 were $7.35 per boe, a decrease of 76 percent from $30.62 per boe realized for the nine months ended September 30, 2008. The Corporation was successful in reducing its lease operating costs by 26 percent to $17.32 per boe when compared to the previous quarter. OneEx incurred $0.5 million in restructuring costs during the nine months ended September 30, 2009. The reduced staffing levels arising from the restructuring and the effects of other cost saving initiatives will lower annualized cash gross general and administrative expenses by approximately $800 thousand. The cost-cutting measures implemented to date are expected to have a significant impact on cash flows in future quarters. As part of the restructuring, Jeff Heim, the Corporation's Vice President, Engineering, has resigned from OneEx to pursue other opportunities.

Over all, our primary focus in the third quarter of 2009 was cost reduction along with adding additional drilling and completion projects into inventory to ensure the Corporation has significant growth opportunity as capital ultimately gets directed to these projects. OneEx currently has an inventory of 45 drilling and 18 recompletion opportunities. In addition, the Corporation is continuing to add to its prospect inventory by accessing its $3.0 million strategic land fund announced earlier in the year. With landsale prices at their lowest level in seven years, this presents a unique and cost effective way for OneEx to build its drilling inventory

    
    Subsequent to the Quarter
    -------------------------
    

In November, 2009 OneEx sold several non-operated Alberta properties in the Watelet and Willesden Green areas (the "Assets") for $5.25 million subject to normal purchase price adjustments. The Watelet disposition closed on November 17th, 2009 and had an effective date of November 1. The Willesden Green disposition had an effective date of October 1 and closed on November 9th. These dispositions result in the Corporation having no debt and a pro forma positive working capital balance of $0.5 million immediately following the property sale. In conjunction with the property disposition, the Corporation's bank line was set at $2.7 million. Current production, net of dispositions, is estimated to be approximately 400 boe/d with an additional 265 boe/d of production currently shut in or behind pipe

At September 30, 2009 a mechanical update of the reserves associated with the Assets was prepared (the "Reserves Update") using the September 30, 2009 Sproule Associates Limited price forecast.

The total company share of reserves associated with the assets in the Reserves Update is disclosed in the following table:

    
    -------------------------------------------------------------------------
                                 Light and                      Natural Gas
                                 Medium Oil     Natural Gas       Liquids
    -------------------------------------------------------------------------
    Reserve                    Gross     Net   Gross     Net   Gross     Net
    Category                   (Mbbl)  (Mbbl)  (MMcf)  (MMcf)  (Mbbl)  (Mbbl)
    -------------------------------------------------------------------------
    Developed Producing         13.6    11.6     472     445    14.1     9.3
    Developed Non-Producing      0.4     0.2      52      43     0.7     0.5
    Undeveloped                  0.0     0.0     267     209     2.7     1.9
    Total Proved                14.0    11.8     857     697    17.4    11.8
    Probable                    12.5     9.1   1,111     830    23.4    15.5
    Total Proved Plus Probable  26.5    20.9   1,969   1,527    40.7    27.3
    -------------------------------------------------------------------------
    

Pricing used in the Reserves Update is outlined in the following table:

    
    -------------------------------------------------------------------------
                                       Natural
                    Crude Oil            gas         NGLs
            -----------------------------------------------------------------
                                                Pent-
                     Edmonton  Cromer  Natural  anes
                        Par    Medium   Gas(i)  Plus  Butanes
              WTI    Price 40   29.3    AECO    FOB    F.O.B.        Exchange
            Cushing  degrees  degrees    Gas   Field   Field  Infla-   Rate
            Oklahoma   API      API    Prices   Gate    Gate   tion   (iii)
             ($US/    ($Cdn/  ($Cdn/   ($Cdn/  ($Cdn/  ($Cdn/ Rate(ii) ($US/
    Year      bbl)      bbl)    bbl)    MMBtu)   bbl)    bbl)  (%/Yr)   $Cdn)
    -------------------------------------------------------------------------
    2009(iv)  71.49    77.63   73.75     3.24   79.50   54.97    2.0   0.800
    2010      75.09    81.60   76.71     5.26   83.57   60.82    2.0   0.850
    2011      78.11    84.94   78.15     6.29   87.00   63.31    2.0   0.875
    2012      82.28    87.09   79.26     6.95   89.20   64.92    2.0   0.950
    2013      92.01    94.97   85.48     7.50   97.27   70.79    2.0   0.950
    There-
     after                      Various Escalation Rates

    Notes:

    (i)    This summary table identifies benchmark reference pricing
           schedules that might apply to a reporting issuer.
    (ii)   Inflation rates for forecasting prices and costs.
    (iii)  Exchange rates used to generate the benchmark reference prices in
           this table.
    (iv)   Three months ending December 31, 2009.
    (v)    Product sale prices will reflect these reference prices with
           further adjustments for quality and transportation to point of
           sale.
    

Historical reported production from the Assets is outlined in the table below:

    
    -------------------------------------------------------------------------
                                                                   Barrel oil
                                  Natural gas   Crude oil    NGLs  equivalent
                                    (mcf/d)      (boe/d)   (boe/d)   (boe/d)
    -------------------------------------------------------------------------
    Year ended December 31, 2008      156           4          2        32
    Quarter ended March 31, 2009      387          10         14        89
    Quarter ended June 30, 2009       398          10         24       100
    Quarter ended September 30, 2009  303          18         23        92
    -------------------------------------------------------------------------

    Outlook
    -------
    

Notwithstanding the short term weakness of natural gas prices, we believe the mid to long range fundamentals in our sector remain strong. OneEx will continue to assemble projects through its strategic land joint venture along with focusing on cost reduction and production optimization. The Corporation is keenly aware of the challenges of operating in this low commodity price environment and will continue to target its financial and operating decisions toward meaningful growth opportunities while continuing to maintain the strength of its balance sheet. OneEx continues to evaluate accretive consolidation and capitalization opportunities and believes that a stable production base, clean balance sheet, large prospect inventory and tax pools in excess of $100 million enhances its strategic position in this regard.

The Corporation will commence drilling one (1.0 net) exploratory well in Central Alberta within the next month along with completing two (2.0 net) additional wells prior to year end. If successful, these wells will be on production in the first quarter of 2010.

    
    On behalf of the board of directors,

    Walter Vrataric


    Reader Advisory
    ---------------
    

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Natural gas volumes are converted to barrel of oil equivalent at six thousand cubic feet of natural gas for each barrel of oil equivalent ("boe") based on the relative heating content of natural gas to crude oil. Readers are cautioned that the relative values of natural gas and crude oil may differ and that the barrel of oil equivalent measure may not be representative of the relative values of natural gas and crude oil. In this news release: boe/d means boe per day; mcf/d means thousand cubic feet per day; mboe means thousand boe; mmcf means million cubic feet; bbl means barrel and mmbtu means million British Thermal Units .

Investors are further cautioned that the preparation of financial statements in accordance with Canadian generally accepted accounting principles ("GAAP") requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

The terms "funds from operations", "operating netbacks" and "net debt" are not recognized measures under GAAP. OneEx's method of calculating these measures may differ from other companies, and accordingly these measures may not be comparable to measures used by other companies. The Corporation determines its funds from operations as cash flow from operating activities before changes in non-cash working capital. Funds from operations per share are calculated using the weighted average basic and diluted shares used in the calculation of earnings per share. Management believes that in addition to cash flow from operating activities, funds from operations is a useful supplemental measure as it demonstrates OneEx's ability to generate cash necessary to repay debt or fund future growth through capital investment before changes in non-cash working capital balances. Investors are cautioned that funds from operations should not be construed as an alternative to cash flow from operating activities determined in accordance with GAAP. Operating netback per boe is the net result of the Corporation's revenue, royalty, lease operating and transportation expenses as found in the accompanying financial statements divided by total sales volumes in the period. Management considers operating netback an important measure as it demonstrates its property level profitability on a unit of production basis. Net debt is the net result of deducting the Corporation's current assets from its total bank debt and current liabilities.

This news release contains certain forward-looking statements, which are based on OneEx's current internal expectations, estimates, projections, assumptions and beliefs. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans" and similar expressions. These statements are not guarantees of future performance and involve a number of risks and uncertainties, many of which are beyond OneEx's control. In particular, forward-looking statements included in this news release include, but are not limited to, statements with respect to average production and projected exit rate; areas of operations; spending and increase in capital budget; availability of funds for OneEx's capital program; the size of, and future net revenues from, reserves; the focus of capital expenditures; expectations regarding the ability to raise capital and to continually add to reserves through acquisitions and development; projections of market prices and costs; the performance characteristics of OneEx's properties; OneEx's future operating and financial results; capital expenditure programs; supply and demand for oil and natural gas; average royalty rates; and amount of general and administrative expenses. In addition, statements relating to "reserves" or "resources" are deemed to be forward looking statements, as they involve the implied assessment, based on certain estimates and assumptions, that the resources and reserves described can be profitably produced in the future .These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond OneEx's control, including the effect of acquisitions; changes in general economic, market and business conditions; changes or fluctuations in production levels; unexpected drilling results, commodity prices, currency exchange rates, capital expenditures, reserves or reserves estimates and debt service requirements; changes to legislation, investment eligibility or investment criteria; OneEx's ability to comply with current and future environmental or other laws; OneEx's success at acquisition, exploration and development of reserves; actions by governmental or regulatory authorities including increasing taxes, changes in investment or other regulations; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas properties; competition from other producers; the lack of availability of qualified personnel or management; changes in income tax laws or changes in tax laws and incentive programs relating to the oil and gas industry; hazards such as fire, explosion, blowouts, cratering, and spills, each of which could result in substantial damage to wells, production facilities, other property and the environment or in personal injury; stock market volatility; and ability to access sufficient capital from internal and external sources. Many of these risks and uncertainties are described in OneEx's Annual Information Form which is available at www.sedar.com. Readers are also referred to risk factors described in other documents OneEx files with Canadian securities authorities. With respect to forward-looking statements contained in this news release, OneEx has made assumptions regarding: current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates and future operating costs. Management has included the above summary of assumptions and risks related to forward-looking information provided in this news release in order to provide shareholders with a more complete perspective on OneEx's future operations and such information may not be appropriate for other purposes. OneEx's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that the OneEx will derive there from. Readers are cautioned that the foregoing lists of factors are not exhaustive. These forward-looking statements are made as of the date of this NEWS RELEASE and OneEx disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

SOURCE ONE EXPLORATION INC.

For further information: For further information: Walter Vrataric, President and Chief Executive Officer, One Exploration Inc., Phone: (403) 781-2752, Fax: (403) 232-8463; Dennis Ward, Vice President, Finance and Chief Financial Officer, One Exploration Inc., Phone: (403) 781-2756, Fax: (403) 232-8463

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ONE EXPLORATION INC.

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