Real Resources provides 2007 guidance and announces plan to explore strategic alternatives

    CALGARY, ALBERTA, March 29, 2007 /CNW/ - Real Resources Inc. ("Real
Resources" or the "Company") ("RER"-"TSX") today provided 2007 guidance for
production, cash flow and capital spending, and announced that the Board of
Directors has initiated a formal process to explore strategic alternatives in
an effort to enhance shareholder value.
    Real Resources anticipates oil and gas production for 2007 to be in the
range of 11,500 to 12,000 boe/d, compared with 11,100 boe/d in 2006. In
January 2007, the Company's production was approximately 11,400 boe/d. Natural
gas volumes have been converted to barrels of oil at 6,000 cubic feet per
barrel (6mcf/bbl).
    Cash flow for 2007 is expected to be in the range of $110 million (based
on US$55 WTI and C$7.40 AECO) to $140 million (based on current strip prices),
compared with $113.1 million in 2006. Capital spending for 2007 is estimated
to be approximately $100 million, down 57% from $231.7 million in 2006.
    "We are committed to enhancing value for Real Resources shareholders,"
said Lowell Jackson, President and Chief Executive Officer. "Despite a
difficult year in 2006, we continue to believe that Real Resources has
valuable assets with significant long-term growth potential. We are working
hard to execute our 2007 plan, while at the same time, exploring other
alternatives for delivering value to our shareholders."
    The Company has engaged CIBC World Markets Inc. as its exclusive
financial advisor to assist the Company to identify and consider strategic
alternatives and their potential to enhance shareholder value, including a
possible merger, amalgamation, reorganization, or sale of some or all of the
assets or any other alternative which may be in the best interest of Real
Resources shareholders. There can be no assurance that a transaction of any
kind will result.
    As previously stated in the March 15, 2007 news release, Real Resources
announced 3 new pool discoveries drilled in the first quarter, all of which
have follow up development drilling opportunities. Total capital expended in
the first quarter is projected to be $31 million which will approximate cash
flow. For the remainder of the year, the Company plans to drill 61 wells. Real
Resources' current defined prospect inventory is in excess of 1,000 wells.
    As of the end of 2006, Real Resources' net debt totaled $157.2 million.
This included a working capital deficiency of $24.8 million and $132.4 million
drawn down from a $185 million extendible revolving term credit facility with
Real Resources' banking syndicate which is made up of three Canadian chartered
    Real Resources expects to use cash flow from production to fund the 2007
capital program. Compared with 2006, Real Resources will reduce its capital
expenditures on the acquisition of land and seismic and will focus its efforts
on developing the numerous opportunities in its existing portfolio. Real
Resources' 2007 capital spending objectives include increasing production from
current levels while at the same time increasing reserves, thereby enhancing
asset value.
    Real Resources estimates that its December 31, 2006 net asset value, as
disclosed in its March 15, 2007 news release, is $622.8 million, equivalent to
$16.05 per basic share outstanding and $15.98 per fully diluted share
outstanding. The net asset value assumes $622.8 million as the before-tax net
present value of proved plus probable reserves discounted at 10%, plus
$84.2 million for undeveloped lands and $73.0 million for seismic data, less
$157.2 million of net debt. Sproule Associates Limited provided the economic
reserves evaluation, Seaton-Jordan & Associates Ltd. provided the undeveloped
lands estimate and Boyd Exploration Consultants Ltd. provided the seismic data
estimate, each as of December 31, 2006.

    About Real Resources

    Real Resources Inc. is a Calgary-based oil and natural gas company active
in the exploration, development and production of crude oil and natural gas in
Western Canada.

    About forward-looking information and statements

    This news release contains certain forward-looking information and
statements within the meaning of applicable securities laws. The use of any of
the words "expect," "anticipate," "continue," "estimate," "objective,"
"ongoing," "may," "will," "project," "should," "believe," "plans," "intends,"
"might," and similar expressions are intended to identify forward-looking
information or statements. In particular this news release contains forward
looking statements with regard to production, cash flow, capital spending,
debt and debt repayment, and strategic alternatives.
    The forward-looking information and statements included in this news
release are not guarantees of future performance and should not be unduly
relied upon. Forward-looking statements are based on current expectations,
estimates and projections that involve a number of risks and uncertainties,
which could cause actual results to differ materially from those anticipated
and described in the forward looking statements. Such information and
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results or events to differ materially from those
anticipated in such forward-looking information or statements including,
without limitation:

    -   Volatility in market prices for oil and natural gas;
    -   Volatility or fluctuations in oil and natural gas production levels;
    -   Volatility in exchange rates for the Canadian dollar relative to
        other world currencies;
    -   Liabilities and risk inherent in oil and natural gas operations,
        including geological, technical, drilling and processing problems;
    -   Uncertainties associated with estimating reserves;
    -   Competition for, among other things, capital, acquisitions or
        reserves, undeveloped lands and skilled personnel;
    -   Incorrect assessments of the value of acquisitions;
    -   Real Resources' success at acquisition, exploration and development
        of reserves, changes in general economic, market and business
        conditions in Canada, North America and worldwide;
    -   Actions by governmental or regulatory authorities including changes
        in income tax laws or changes in tax laws and incentive programs
        relating to the oil and gas industry;
    -   The availability of acceptable strategic alternatives; and
    -   The Company's ability to successfully implement any particular
        strategic alternative and whether such strategic alternative will
        yield the anticipated benefits.

    We caution that the forgoing list of assumptions, risks and uncertainties
is not exhaustive. Additional information on these and other factors which
could affect operations or financial results are included under the heading
"Risk Factors" in Real Resources' Annual Information Form as filed under Real
Resources' profile on Additional information may also be found
in Real Resources' other reports on file with Canadian securities regulatory
    The forward looking information and statements included in this news
release speak only as of the date of this news release, and we assume no
obligation to publicly update or revise them to reflect news events or
circumstances, except as may be required pursuant to applicable laws.
    Note: Disclosure provided herein in respect of boe may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf is based on
an energy equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency at the wellhead.

    %SEDAR: 00004883E

For further information:

For further information: Lowell E. Jackson, P. Eng., President & Chief
Executive Officer and Acting Chief Financial Officer, Real Resources Inc.,
Telephone: (403) 262-9077, Fax: (403) 262-6403

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