One Exploration Inc. announces year end results and sucessful winter drilling program


    CALGARY, April 16 /CNW/ - One Exploration Inc. (the "Corporation" or
"One") is pleased to announce its financial and operating results for the
quarter and year ended December 31, 2006. Although much of our effort has been
focused on the reorganization of the corporation which was completed following
its successful recapitalization on November 28, 2006, we are pleased with oil
and natural gas exploration and development efforts we've been able to achieve
in such a short time. Following the $12 million financing of the corporation,
we acquired a small private company on December 11, 2006 with 97 boe per day
of production, 21,760 gross (16,064 net) acres of undeveloped land and
numerous drilling prospects.
    Given the timing of our activity, the figures included for our year ended
December 31, 2006 are limited to the costs related to the corporation's
reorganization, the corporate acquisition and the 20 days of operating results
on properties which were purchased.

    Financial and operating summary:

                                               July 20,            Quarter
                                               2006 to              Ended
                                             December 31,        December 31,
                                                 2006                2006

    Financial highlights

    Petroleum and natural gas sales          $    85,110         $    85,110

    Cash flow from operations                $  (718,486)        $  (718,486)

    Per share basic and diluted              $     (0.14)        $     (0.14)

    Net loss                                 $  (758,724)        $  (521,370)

    Per share basic and diluted              $     (0.15)        $     (0.10)

    Capital expenditures                     $   381,885         $   361,310

    Acquisition                              $ 2,675,226         $ 2,675,226


    Capitalization:                                                 As at
                                                                 December 31,

    Working capital (net of long term debt)                      $10,879,279

    Class A Common Shares outstanding                             13,440,337

    Class B Common Shares outstanding                              1,268,862

    Weighted average Class A Shares outstanding(1)                 5,227,249


    Operating highlights (post acquisition):                     December 11,
                                                                   2006 to
                                                                 December 31,


    Natural gas (mcf/d)                                                  585

    Total (boe/d)                                                         97

    Average realized price ($/mcf)                                      7.28


    (1) Class B Common Shares are assumed to be converted to Class A Common
        Shares based on the conversion price of $10 divided by the year end
        Class A Common Share price of $1.80 per share.

    Oil and gas reserves:

    The following tables provide information on One's crude oil and natural
gas reserves as of December 31, 2006, as evaluated by the Corporation's
independent reserve engineering firm, GLJ Petroleum Consultants Ltd. ("GLJ").
The evaluation of the Corporation's petroleum and natural gas reserves was
conducted pursuant to National Instrument 51-101 - Standards of Disclosure for
Oil and Gas Activities and was reviewed and approved by the Reserves Committee
of One's Board of Directors.

    December 31, 2006 Reserves Summary(1)
                                    Natural Gas (MMcf)  Oil Equivalent (Mboe)
      Producing                                   273                     46
      Developed Nonproducing                        0                      0
      Undeveloped                                   0                      0
    Total proved                                  273                     46
    Total probable                                341                     71
    Total proved plus probable                    615                    117

    (1) Reserves and values are company interest before royalties using
        forecast prices and costs from the December 31, 2006 GLJ report.
        Columns may not add due to rounding.

    December 31, 2006 Net Present Values Summary(1)
                               Present value of cash flows after tax ($000's)
                                     Undiscounted       5%      10%      15%
      Producing                               491      468      447      428
      Developed Nonproducing                    0        0        0        0
      Undeveloped                               0        0        0        0
    Total proved                              491      468      447      428
    Total probable                          1,385    1,155      980      843
    Total proved plus probable              1,876    1,623    1,427    1,272

    The following table outlines the pricing assumptions used in the GLJ
report dated December 31, 2006:

                  West Texas                      Edmonton   Foreign Exchange
    Year        Intermediate Oil   Light Oil      AECO Gas         Rate
                   ($US/bbl)       ($Cdn/bbl)    ($Cdn/mcf)     ($Cdn/$U.S)
    2007             62.00            70.25         7.20            0.87
    2008             60.00            68.00         7.45            0.87
    2009             58.00            65.75         7.75            0.87
    2010             57.00            64.50         7.80            0.87
    2011             57.00            64.50         7.85            0.87
    2012             57.50            65.00         8.15            0.87
    2013             58.50            66.25         8.30            0.87
    2014             59.75            67.75         8.50            0.87
    2015             61.00            69.00         8.70            0.87
    2016             62.25            70.50         8.90            0.87
    2017             63.50            71.75         9.10            0.87
    Thereafter  2.0% escalated  2.0% escalated  2.0% escalated      0.87

    Capital efficiency:

    Finding and Development Costs - excluding effect of acquisitions
                                                                 Proved plus
                                                     Proved ($)  probable ($)
    Capital expenditures (thousands)                       334           334
    Future capital - December 31, 2006 (thousands)           0           226
    Total (thousands)                                      334           560
    Total reserve additions (mboe)                           0            24
    Finding and development costs (per boe)(2)             n/a         23.33

    Finding and Development Costs - including effect of acquisitions
    (excluding undeveloped land)
                                                                 Proved plus
                                                     Proved ($)  probable ($)
    Capital expenditures (thousands)                       334           334
    Acquisition of reserves (thousands)(1)               1,002         1,002
    Future capital - December 31, 2006 (thousands)          23           444
    Total (thousands)                                    1,359         1,780
    Total reserve additions (mboe)                          48           119
    Finding and development costs (per boe)(2)           28.31         14.96

    Finding and Development Costs - including effect of acquisitions
    (including undeveloped land)
                                                                 Proved plus
                                                     Proved ($)  probable ($)
    Capital expenditures (thousands)                       334           334
    Acquisition of reserves (thousands)(1)               1,002         1,002
    Acquisition of undeveloped land (thousands)          1,548         1,548
    Future capital - December 31, 2006 (thousands)          23           444
    Total (thousands)                                    2,907         3,328
    Total reserve additions (mboe)                          48           119
    Finding and development costs (per boe)(2)           60.56         27.97

    (1) Total acquisition cost of 1243908 Alberta Ltd. of $2,550 thousand
        less $1,548 thousand of undeveloped land included in the acquisition.
    (2) Finding and Development Costs per barrel of oil equivalent (boe) is
        calculated by dividing the identified capital expenditures by the
        applicable reserve additions. One has adopted the standard of six mcf
        of natural gas being equivalent to one barrel of oil when converting
        natural gas to barrels of oil equivalent. This practice may be
        misleading, particularly if used in isolation. A 6:1 conversion ratio
        is based on an energy equivalency conversion method primarily
        applicable at the burner tip and does not represent a value
        equivalency at the wellhead.

    First Quarter 2007 Operational Update:

    Fisher/Kirby Drilling Program Highlights

    -   Drilled nine (5.9 net) exploration wells and recompleted two
        (1.3 net) standing wells.
    -   Cased five and completed four of the nine exploration wells.
    -   Three exploration wells and one recompletion well were successfully
        tied in late in the first quarter of 2007. Initial restricted
        production rates during the second week or April totalled 1,044 mcf/d
        (174 boe/d) net to One before royalty burden. Initial production
        rates are restricted for these wells during well start up until
        sufficient production and pressure data are available. One
        anticipates that opening up the wells will result in an additional
        300 mcf/d (50 boe/d), commencing late April 2007. Long term well
        performance will differ materially from production rates reported
        during the initial start-up of the wells.
    -   One earned a 65 percent working interest in approximately 70 sections
        of undeveloped crown land. The majority of the undeveloped land is
        due to expire in December 2007, however, with the successful results
        of its drilling program, management of the Corporation is confident
        the majority of the lands will be granted a lease continuation.
    -   One is currently reprocessing and interpreting existing seismic data
        over the earned lands for a winter 2008 drilling program. One
        anticipates having future drilling locations targeted by the third
        quarter of 2007.

    Alberta and BC Peace River Arch Drilling Program Highlights


    -   Drilled and cased the first well of the three well commitment under
        the Shane/Rycroft farmin, a 500 metre depth Dunvegan/Doe Creek
        exploration well at 10-33-76-3 W6 (0.5 net) which was completed in
        the first quarter of 2007, determined to be uneconomic and
        subsequently abandoned.
    -   The Corporation earns 100 percent of the farmor's working interest in
        each test well spacing unit, subject to a five percent to 15 percent
        gross overriding royalty convertible, at pay out of the test well to
        60 percent of the farmor's pre-farmout working interest plus a
        60 percent interest in the farmor's pre-farmout working interest in
        one additional section of land. Within 45 days of rig release of the
        last test well, the Corporation may elect to drill further earning
        wells under the same earning terms as the test wells and spud such
        wells within 60 days of making such election. The Corporation has a
        rolling option on a well-by-well basis to continue to earn lands
        until March 31, 2008.

    Additional Shane/Rycroft activity:

    -   Re-entered a previously abandoned wellbore at 2-29-79-4 W6 and
        completed a Cadomin gas well which tested at 450 mcf/day gross. The
        company share of tested production is 270 mcf/day (45 boe/d) net. The
        tie-in is in progress and the well is expected to come on stream in
        May 2007. Initial test rates are based on production over limited
        periods of time. Long term well performance will differ materially
        from tested production rates reported during the initial start-up of
        the wells

    Boundary Lake Area Halfway Oil Discovery:
    -   Participated for a 25 percent working interest in a Halfway oil pool
        discovery which flow tested at gross rates of 40 bbls/day and
        210 mcf/day. It is anticipated the well will produce at an estimated
        12 bbls/day and 60 mcf/day net to the Corporation based on production
        from an offsetting analogy pool. The well is currently being tied in
        and is expected to begin production during April 2007.
    -   Acquired a 37.5 percent working interest in 960 acres of offsetting
        Crown land at the February 7, 2007 Alberta land sale.
    -   Participated in a proprietary 6.5 square mile 3-D seismic program to
        delineate further development and exploration locations offsetting
        the discovery well. The 3-D data has been shot and will be processed
        and interpreted during the second quarter of 2007.

    Exploration commitment:

    The Corporation committed to incur and renounce $12,000,000 under the
terms of the Corporation's flow through Initial Public Offering. Management
estimates that approximately $3.6 million, or 74 percent of the estimated
first quarter 2007 capital spending of $4.8 million is eligible for
renunciation to shareholders.

    Current production:

    Current daily production is approximately 242 boe/d. New production
during the second quarter of 2007 is anticipated from the Boundary Lake and
Shane/Rycroft area.

    Annual general meeting of shareholders:

    One Exploration Inc. will hold its annual meeting of shareholders on
Wednesday, June 6th at 3:00 pm in the Viking room of the Calgary Petroleum
Club located at 319 - 5th Avenue S.W., Calgary, Alberta.

    About One Exploration Inc.

    One Exploration was continued into Alberta from Ontario in November 2006
and participates in oil and gas exploration, development and production in
Western Canada. Highlights to date include:

    -   Closed an Initial Public Offering of $12,000,000 on November 28, 2006
        and began trading on the TSX Venture Exchange under the symbols OE.A
        and OE.B on December 19, 2006;

    -   Closed a private Placement for proceeds of $1,250,000 on December 4,

    -   Closed the acquisition of 1243908 Alberta Ltd. which owned assets in
        the Peace River Arch area of Alberta on December 11, 2006, and

    -   Commenced drilling in the Peace River Arch area on the previously
        announced Shiningbank Farm-in Agreement.

    -   Commenced drilling in the Fischer/Kirby area on the previously
        announced Encana Farm-in.

    The Board of Directors have approved the 2007 capital budget, totalling
$12.4 million.

    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.

    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.

    This news release contains information regarding estimated net present
values of reserves. It should not be assumed that the estimates of net present
value of the reserves represents the fair market value of the reserves.

    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.

    Cash flow from operations and cash flow netbacks are not recognized
measures under GAAP. Management believes that in addition to net income, cash
flow from operations and cash flow netbacks are useful supplemental measures
as they demonstrate One's ability to generate the cash necessary to repay debt
or fund future growth through capital investment. Investors are cautioned,
however, that these measures should not be construed as an alternative to net
income determined in accordance with GAAP as an indication of One's
performance. One's method of calculating these measures may differ from other
companies and, accordingly, they may not be comparable to measures used by
other companies. For these purposes, One defines cash flow from operations as
cash provided by operations after changes in non-cash operating working
capital and defines cash flow netbacks as revenue less royalties and operating

    One has adopted the standard of six mcf of natural gas being equivalent
to one barrel of oil when converting natural gas to barrels of oil equivalent
(boe). This practice may be misleading, particularly if used in isolation. A
6:1 conversion ratio is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.

    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 IPO Prospectus and One's Management's
Discussion and Analysis. Readers are also referred to risk factors described
in other documents Find files with Canadian securities authorities. Copies of
these documents are available without charge from One. Except as required by
applicable law, One 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) 265-4115 ext 222, Fax: (403)
232-8463; Dennis Ward, Vice President, Finance and Chief Financial Officer,
One Exploration Inc., Phone: (403) 265-4115 ext 226, Fax: (403) 232-8463

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