Spitfire Energy announces second quarter results

CALGARY, Nov. 27 /CNW/ - Spitfire Energy Ltd. (TSX-V: SEL) is pleased to announce its financial and operating results for the second quarter of fiscal 2010 ending September 30, 2009.

    
    Highlights

    -   Production increased 20% to 340 boed (80% oil) for the six months
        ended September 30, 2009 compared with 283 boed for the six months
        ended September 30, 2008.

    -   Completed the majority of the Bonnie Glen pipeline project to tie-in
        the two wells drilled during the previous quarter. Preparing to drill
        the third well in the third quarter of Fiscal 2010.

    -   Increased undeveloped leasehold 14% to 22,765 net acres acquiring
        land on two new prospects.

    -   Total Company production at November 27, 2009 is 408 boed.
    

The following table provides a summary of Spitfire's results for the three-month period ending September 30, 2009 and 2008. Spitfire's unaudited financial statements and Management's Discussion and Analysis can be accessed for viewing on SEDAR at www.sedar.com and on the Company website at www.spitfireenergy.com.

    
    -------------------------------------------------------------------------
                                3 Months Ended           Six Months Ended
                                 September 30              September 30
                              2009         2008         2009         2008
    -------------------------------------------------------------------------
    Financial
    Petroleum and natural
     gas sales
      Crude oil and NGLs   $1,244,777   $2,116,890   $2,523,030   $3,916,276
      Natural gas            $139,207     $378,964     $413,110     $653,994
      Net revenue          $1,383,984   $2,495,854   $2,936,140   $4,570,270
    Cash flow from
     operations              $267,937   $1,281,823     $665,130   $2,211,281
      Per share basic
       and diluted              $0.01        $0.03        $0.02        $0.05
    Net earnings (loss)     ($225,062)    $488,839    ($450,583)    $853,897
      Per share basic
       and diluted             ($0.01)       $0.01       ($0.01)       $0.02
    Capital expenditures     $534,760   $4,153,429   $1,035,234   $5,163,948
    Working capital
     (deficit)            ($6,478,860) ($4,737,519) ($6,478,860) ($4,737,519)
    Total assets          $24,194,513  $24,338,246  $24,194,513  $24,338,246
    Common shares
     outstanding           38,895,453   40,772,582   38,895,453   40,772,582

    -------------------------------------------------------------------------

    Operating
    Realized prices
      Crude oil and NGLs
       ($/bbl)                 $62.23      $103.18       $61.28      $101.91
      Natural gas ($/mcf)       $2.93        $7.30        $3.26        $8.20
      Total ($/boe)            $50.12       $85.58       $47.19       $88.25
      Operating Netbacks
       ($/boe)                 $19.81       $52.21       $20.43       $52.71
    Average production
      Crude oil and NGLs
       (bbl/d)                    214          223          225          210
      Natural gas (mcfd)          517          564          692          436
    -------------------------------------------------------------------------
      Total (boed)                300          317          340          283
    -------------------------------------------------------------------------
    

Spitfire Energy Ltd. is a junior oil and gas company engaged in the exploration, development and production of natural gas and crude oil reserves. Spitfire's common shares trade on the TSX Venture Exchange under the symbol "SEL".

This press release contains forward-looking statements that are based on current expectations. There are a number of risks and uncertainties associated with the oil and gas industry that could cause actual results to differ materially from those anticipated.

A barrel of oil equivalent, derived by converting gas to oil using a ratio of six thousand cubic feet of gas to one barrel of oil, may be misleading, particularly if used in isolation. A boe conversion is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the contents of this press release.

%SEDAR: 00016881E

SOURCE SPITFIRE ENERGY LTD.

For further information: For further information: Keith N. Chase, President and Chief Executive Officer, (403) 205-3400 x224; Danny Zivkusic, Chief Financial Officer, (403) 205-3400 x228

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SPITFIRE ENERGY LTD.

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