One Exploration Inc. announces third quarter 2007 results


    CALGARY, Nov. 20 /CNW/ - One Exploration Inc. (the "Corporation" or
"One") is pleased to report its financial and operating results for the
quarter and nine months ended September 30, 2007. Operational and corporate
highlights include:

    -   Average production increased in the third quarter by 103 percent to
        693 boe per day compared to 342 boe per day in the prior quarter. The
        Corporation's current production is approximately 770 boe per day and
        a year end exit rate of approximately 950 boe per day is forecasted.

    -   One's drilling program in the third quarter has resulted in several
        notable successes. Eight wells (6.5 net) have been drilled, cased and
        completed with tie-in operations conducted or underway on five
        (4.5 net) wells. Two (1.5 net) wells are anticipated to be on
        production prior to year end and one (1.0 net) well in Central
        Alberta has recently been tied-in and is currently producing.

    -   Operating costs, including transportation, continued to decline
        compared to prior quarters to $13.80 per boe.

    -   One ended the quarter with positive working capital of $ 0.9 million
        and entered into a $7.0 million credit facility with a Canadian
        chartered bank.

    -   One has approximately 65 thousand net acres of undeveloped lands and
        tax pools in excess of $90 million.

    Financial Performance
    Funds from operations in the quarter were $0.5 million or $0.02 per basic
Class A share and $0.02 per diluted Class A share. Basic funds from operations
per Class A share increased by 561 percent when compared to the $80 thousand
realized during the second quarter of 2007. We project higher cash flow in the
fourth quarter due to increased production volumes and increased gas prices.
    Operating costs were reduced during the quarter due to increased
operating efficiencies and the Corporation expects this trend to continue in
the fourth quarter and in 2008.

    Royalty Changes
    The Alberta Government has proposed changes to the royalty framework in
Alberta. These changes are expected to take effect in 2009 and are still
subject to further clarification. Given the current pricing environment, the
recommended changes are not anticipated to have a material adverse effect on
the Corporation's current estimate of its oil and gas reserves asset value.
One will adjust its future capital investment decisions based on the
anticipated 2009 royalty changes taking into account additional factors
including, but not limited to, commodity prices, drilling and completion
costs, land acquisition costs, and labour costs. We will continue to
communicate with shareholders the expected impact of royalty changes and their
effect on the Corporation's asset value and capital investment decisions
throughout 2008.

    The Corporation is expecting to drill six to eight wells in the Peace
River Arch, Central Alberta and Southeast Alberta areas before year end. One
anticipates shooting a proprietary seismic program over its undeveloped land
base in the Shane/Rycroft area of the Peace River Arch prior to year end to
delineate additional drilling locations for its 2008 drilling program.
    Throughout our first year of operations One has maintained a high degree
of discipline with respect to our capital investment program notwithstanding
the inherent risk associated with exploration drilling in the Western Canadian
Sedimentary basin. As a result, we have maintained a strong balance sheet that
enables us to execute our 2008 drilling program and capitalize on a robust
acquisition market for both asset and corporate acquisitions. Notwithstanding
the challenges of 2007 faced by the entire industry, our outlook and strategy
continuing into 2008 will be the maintenance of our strong balance sheet and
continued growth through a disciplined combination of drilling and selective
    On July 19, 2006 the Corporation determined that a substantial
realignment of the interests of creditors and shareholders was completed, and
accordingly applied the provisions of Section 1625 - Comprehensive Revaluation
of Assets and Liabilities of the Canadian Institute of Chartered Accountants
Handbook (the "Revaluation"). As a result of the revaluation, comparative
financial information is not presented for periods prior to July 20, 2006.

    Financial and Operating Summary

                              Three months ended         Nine months ended
                            September    September    September    September
                             30, 2007     30, 2006     30, 2007     30, 2006
    Financial highlights ($)
    Petroleum and natural
     gas sales              2,296,854            -    3,863,176            -
    Net earnings (loss)    (1,050,238)    (237,354)   1,285,022     (237,354)
    Net earnings (loss)
     per share
      - basic                   (0.04)           -         0.06            -
      - diluted                 (0.04)           -         0.06            -
    Working capital
     (deficit) at period
     end                      834,559     (383,933)
    Capital Expenditures
     acquisitions)          4,643,360       20,545   28,484,337       20,545
      Natural gas (mcf
       per day)                 3,659            -        2,027            -
      Crude oil and NGLs
       (bbls per day)              83            -           32            -
      BOE per day (6:1)           693            -          369            -
    Average realized price
      Natural gas ($ per mcf)    5.23            -         5.91            -
      Crude oil and NGLs
       ($ per bbl)              63.42            -        63.03            -
      BOE ($ per boe, 6:1)      36.04            -        38.31            -

    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.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this news release.

    Natural gas reserves 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 press 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.

    This news release contains certain forward-looking statements, which are
based on One'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 One's control. Such forward-looking statements necessarily involve
known and unknown risks and uncertainties, which may cause One's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements and, accordingly, no assurances can be given that
any of the events anticipated by the forward-looking statements will transpire
or occur, or if any of them do, what benefits One will derive from them. The
risks and uncertainties associated with the forward-looking statements
included in this news release include, among other things, 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; One's ability to comply with current and future
environmental or other laws; One's success at acquisition, exploration and
development of reserves; actions by governmental or regulatory authorities
including increasing taxes, changes in investment or other regulations; and
the occurrence of unexpected events involved in the exploration for, and the
operation and development of, oil and gas properties. Many of these risks and
uncertainties are described in One's Annual Information Form which is
available at Readers are also referred to risk factors
described in other documents One files with Canadian securities authorities.
Copies of these documents are available without charge from the Corporation.
Except as required by applicable law, the Corporation disclaims any
responsibility to update these forward-looking statements.

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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