Wrangler West Natural Gas Production Boosts 2007 Six Month Revenue



    CALGARY, Aug. 23 /CNW/ - Wrangler West Energy Corp. ("Wrangler West")
(TSX-V "WX") announces operating and financial results for the three and six
months ended June 30, 2007, together with comparative data for the same
periods in 2006.
    Wrangler West is a Canadian junior oil and natural gas producer building
production and assets through exploration in Alberta. Since inception, our
mandate has been to use the drill bit to add value for our shareholders and to
maximize return on invested capital. Disciplined management of our finding
costs and production portfolio creates sufficient funds flow from operations
to support growth internally. Wrangler West will continue to reinvest funds
flow from operations and to protect shareholder equity by adhering to our
mandate.

    Production and Revenue Growth

    Wrangler West's 2007 six month operating and financial achievements
include:

    
    -   83 percent increase in natural gas production;
    -   48 percent increase in total production;
    -   50 percent increase in revenue; and
    -   34 percent increase in funds flow from operations.

    In June 2007, we drilled Wrangler West's first horizontal well. The
Wabamun A oil well, completed in our Riviere area, well was placed on stream
for the last seven days of June and produced at a rate of more than 100 boe/d.

                       Three and Six Month Highlights

                    Three months ended June 30      Six months ended June 30
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Production
    Oil and NGL
     (bbls/d)          343       393       (13)      347       407       (15)
    Natural gas
     (mcf/d)         8,112     4,660        74     7,987     4,368        83
    Total (boe/d)    1,695     1,170        45     1,678     1,135        48
    -------------------------------------------------------------------------
    Prices
    Oil and NGL
     ($/bbl)         57.31     64.44       (11)    55.07     58.38        (6)
    Natural gas
     ($/mcf)          7.86      6.53        20      7.95      7.17        11
    -------------------------------------------------------------------------
    Per boe ($)
    Petroleum and
     natural gas
     revenues        49.23     47.65         3     49.20     48.54         1
    Royalties
     (net of ARTC)   (9.58)    (8.39)       14     (9.69)   (10.20)       (5)
    Operating costs  (9.58)    (8.17)       17    (10.51)    (8.79)       20
    -------------------------------------------------------------------------
    Field netback    30.08     31.10        (3)    29.00     29.54        (2)
    General and
     administrative  (1.62)    (2.32)      (30)    (1.69)    (2.21)      (24)
    Interest         (0.89)    (0.47)       89     (0.88)    (0.42)      110
    Current income
     taxes           (3.22)     3.09      (204)    (2.11)        -         -
    -------------------------------------------------------------------------
    Funds flow from
     operations      24.35     31.39       (22)    24.32     26.91       (10)
    Depletion,
     depreciation
     and accretion  (20.24)   (13.44)       51    (20.33)   (14.11)       44
    Stock-based
     compensation    (2.53)    (0.81)      212     (1.43)    (0.97)       47
    Future income
     taxes            2.11     (1.73)     (222)     0.53     (1.13)     (147)
    -------------------------------------------------------------------------
    Net earnings      3.69     15.42       (76)     3.09     10.71       (71)
    -------------------------------------------------------------------------
    Financial
     ($ thousand)
    Petroleum and
     natural gas
     revenues        7,596     5,070        50    14,942     9,971        50
    Royalties
     (net of ARTC)  (1,478)     (892)       66    (2,944)   (2,096)       40
    Operating
     costs          (1,477)     (869)       70    (3,192)   (1,806)       77
    General and
     administrative   (249)     (247)        1      (512)     (454)       13
    Interest          (137)      (50)      173      (268)      (86)      212
    Current income
     taxes            (497)      329      (251)     (640)        -         -
    -------------------------------------------------------------------------
    Funds flow from
     operations      3,757     3,340        12     7,387     5,528        34
    Depletion,
     depreciation
     and accretion  (3,122)   (1,430)      118    (6,175)   (2,898)      113
    Stock-based
     compensation     (391)      (86)      356      (435)     (199)      118
    Future income
     taxes             325      (184)     (277)      160      (231)     (169)
    -------------------------------------------------------------------------
    Net earnings       570     1,641       (65)      938     2,200       (57)
    -------------------------------------------------------------------------
    Outstanding
     common shares
     (thousand,
     except where
     indicated)
    Weighted average
     - basic         6,361     6,361         -     6,361     6,361         -
    Weighted average
     - diluted       6,805     6,592         3     6,719     6,592         2
    Period end
     - basic         6,361     6,361         -     6,361     6,361         -
    -------------------------------------------------------------------------
    Funds flow
     - basic
     ($/share)        0.59      0.53        11      1.16      0.87        33
    Funds flow
     - diluted
     ($/share)        0.55      0.51         8      1.10      0.84        31
    Earnings
     - basic
     ($/share)        0.09      0.26       (65)     0.15      0.35       (57)
    Earnings
     - diluted
     ($/share)        0.08      0.25       (68)     0.14      0.33       (58)
    -------------------------------------------------------------------------
    Total assets
     ($ thousand)                                 44,379    37,409        19
    -------------------------------------------------------------------------
    Note:  Wrangler West converts petroleum and natural gas reserves and
           volumes to a common unit of measure on a basis of six thousand
           cubic feet ("mcf") of natural gas equals one barrel ("bbl") of
           oil. Disclosure using barrels of oil equivalent ("boe") may be
           misleading, particularly if used in isolation. The basis for the
           boe conversion ratio of 6 mcf equals one bbl is an energy
           equivalency conversion method, primarily applicable at the burner
           tip, and it does not represent a value equivalency at the
           wellhead.

                             To Our Shareholders
    

    Wrangler West is pleased to present operating and financial results for
the three and six months ended June 30, 2007. A notable highlight is the
growth we achieved in natural gas production compared to the same period last
year.

    Increased Production

    For the first six months of 2007, Wrangler West produced 1,678 boe/d, a
48 percent increase from one year ago. This increase is a result of our
successful 2006 exploration activity at Riviere. We exited the 2007 first half
at a rate of approximately 1,650 boe/d.

    Riviere Core Area

    Late in the 2007 second quarter, we drilled Wrangler West's first
horizontal well at Riviere. The well encountered over 400 meters of pay in the
Wabamun A zone and is producing at a stabilized rate in excess of 100 boe/d.
With these encouraging results, we have licensed two additional horizontal
wells and commenced drilling the first well. Continued success with our
horizontal drilling will lead to a full field horizontal development program.
    In conjunction with our Riviere drilling, we are ready to proceed with
our Wabamun A pool waterflood project once the Alberta Energy & Utilities
Board ("AEUB") approves our application. Production increases from this pool
will require facilities expansion to treat new oil production and to gather
and transport new natural gas production. To prepare for this infrastructure
expansion, we have acquired surface access to construct multiple pipelines
under the Sturgeon River. One of these pipelines will tie in to our existing
infrastructure to move Wrangler West's restricted natural gas production to
market. The other pipelines will provide opportunities for Wrangler West to
develop the Wabamun A pool on two sections south of the Sturgeon River. We
expect to complete this expansion of our pipelines in the 2007 fourth quarter.

    Industry Conditions

    Commodity prices in the first half of 2007 remained strong with crude oil
at approximately US$72 WTI per barrel although, recently, natural gas prices
have since softened to a low of Cdn$5.00 per mcf. In Canada, natural gas
exploration remains considerably lower than a year ago. A lack of natural gas
exploration and declining production reduces field deliveries which should
strengthen natural gas prices. Natural gas is in the shoulder season and
storage is at a five year high. As we approach the heating season and draw
down storage, natural gas prices should improve. Our industry has learned to
expect volatility in commodity prices as disruptive weather and other market
forces affect both supply and demand.
    Crude oil prices remain robust as uncertainties throughout the world
impose a premium on the value of this commodity. Perceived third world
consumption forecasts underscore the uncertainty of long-term supply and
heighten competition for crude oil. Should this perception be accurate, we
would expect oil prices to escalate until new discoveries and future supply
offset demand.
    The Western Canada Sedimentary Basin is experiencing reduced conventional
drilling as producers wrestle with increasing finding costs and as competition
from foreign oil and natural gas opportunities lures exploration capital by
offering larger drilling targets with acceptable levels of perceived "country"
risk. Alternatively, Canada's oil sands offer some sense of long-term supply
and will continue to attract new capital. Due to this year's drilling
slowdown, we expect a significant increase in merger and acquisitions within
our sector. The M&A process will create new opportunities for junior oil and
natural gas companies prepared to acquire assets and deploy capital to renew
exploration ideas.

    Demonstrating Growth

    Growing natural gas volumes delivered positive 2007 six month financial
results for Wrangler West. We have completed multiple 3D seismic programs,
identified natural gas drilling targets and work is underway to secure surface
access for these locations. Our efforts will also focus on further horizontal
drilling in the Wabamun A pool at Riviere where there could be twenty
horizontal drilling locations. Full field development of this pool has the
potential to maximize this asset's inherent value for Wrangler West's
shareholders.

    Steven F. Johnson
    President and Chief Executive Officer
    August 23, 2007


    
                     Management's Discussion and Analysis
    

    Management of Wrangler West Energy Corp. ("Wrangler West", "we", the
"company" or "our") prepared the following information as of August 23, 2007
which should be read in conjunction with the audited financial statements for
the years ended December 31, 2006 and 2005 and the unaudited interim financial
statements for the three and six months ended June 30, 2007 and 2006.
    Management's Discussion and Analysis contains the term 'funds flow from
operations' and 'netbacks', which are not recognized measures under Canadian
generally accepted accounting principles (GAAP). Management believes that, in
addition to net earnings, funds flow from operations is a useful supplemental
measure. Investors are cautioned, however, that this measure should not be
construed as an alternative to net earnings determined in accordance with
GAAP, as an indication of the company's performance.
    Wrangler West's determination of funds flow from operations may not be
comparable to that reported by other companies. Funds flow from operations is
equal to cash flow from operations before changes in non-cash operating
working capital items as presented in the statement of cash flows. Wrangler
West presents funds flow from operations per share calculated on a basis
consistent with the calculation of earnings per share. Netbacks are calculated
using total revenue minus royalties and operating costs. Wrangler West
calculates total boe by multiplying the daily production times the number of
days in the period.
    The table below illustrates the reconciliation between cash flow from
operations and funds flow from operations, as defined above, after changes in
working capital for the periods ended June 30, 2007 and 2006.

    
                                      Three months ended    Six months ended
                                                  Jun 30              Jun 30
    -------------------------------------------------------------------------
    ($ thousands)                         2007      2006      2007      2006
    -------------------------------------------------------------------------
    Cash flow from operations            4,421     5,747     7,585     8,942
    Change in non-cash working capital    (663)   (2,407)     (199)   (3,414)
    -------------------------------------------------------------------------
    Funds flow from operations           3,757     3,340     7,387     5,528
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West converts petroleum and natural gas reserves and volumes to
a common unit of measure on a basis of six thousand cubic feet ("mcf") of
natural gas equals one barrel ("bbl") of oil. Disclosure using barrels of oil
equivalent ("boe") may be misleading, particularly if used in isolation. The
basis for the boe conversion ratio of 6 mcf equals one bbl is an energy
equivalency conversion method, primarily applicable at the burner tip, and it
does not represent a value equivalency at the wellhead.
    This document contains forward-looking statements, usually indicated by
such statements as "we expect", "we anticipate", "we intend" and similar
expressions, such as those relating to: results of operations and financial
condition; capital expenditures, financing, and commodity prices; number,
type, timing and tie-in of wells drilled; commencement and costs of
production; and the magnitude of crude oil and natural gas reserves. By their
nature, forward-looking statements are subject to numerous risks and
uncertainties that could significantly affect anticipated results in the
future and, accordingly, actual results may differ materially from those
predicted. The forward-looking statements contained in this report are as of
August 23, 2007 and are subject to change after that date. Assumptions used in
the preparation of such information, although considered reasonable at the
time of preparation, may prove to be imprecise and, as such, readers should
not rely unduly on forward-looking statements. Wrangler West Energy Corp.
disclaims any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities laws.
    Wrangler West's external business risks arise from the uncertainty of
crude oil and natural gas pricing, the uncertainty of interest and exchange
rates, environmental and safety issues, and financial and liquidity
considerations. Additional risk arises from the production performance of
existing properties, changes in regulatory standards and uncertain results
from capital expenditure programs.
    Wrangler West's auditors have not reviewed the financial statements for
the three and six months ended June 30, 2007, the accompanying notes nor the
MD&A in this interim report.

    REVIEW OF INTERIM FINANCIAL STATEMENTS

    Wrangler West achieved growth of 48 percent in total production for the
six months ended June 30, 2007 as we tied-in natural gas production from
exploration and development drilling completed in 2006. Exploration successes
from 2007 are awaiting tie-in and our horizontal oil well was on production
for only the last week of the second quarter. An 83 percent increase in
natural gas production as well as natural gas price recovery had the expected
effect on petroleum and natural gas revenue - a 50 percent increase from the
same period in 2006.

    
    SELECTED QUARTERLY INFORMATION

                                      Three months ended
    -------------------------------------------------------------------------
    ($ thousand except where            Jun 30    Mar 31    Dec 31    Sep 30
     indicated)                           2007      2007      2006      2006
    -------------------------------------------------------------------------
    Total revenues                       7,596     7,346     4,921     4,611
    Net earnings (loss)                    570       368        (9)      402
    Earnings - basic ($/share)            0.09      0.06         -      0.06
    Earnings - diluted ($/share)          0.08      0.06         -      0.06
    Total production (boe/d)             1,695     1,660     1,143     1,082
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                      Three months ended
    -------------------------------------------------------------------------
    ($ thousand except where            Jun 30    Mar 31    Dec 31    Sep 30
     indicated)                           2006      2006      2005      2005
    -------------------------------------------------------------------------
    Total revenues                       5,070     4,900     5,500     4,912
    Net earnings                         1,641       560     1,236       942
    Earnings - basic ($/share)            0.26      0.09      0.19      0.15
    Earnings - diluted ($/share)          0.25      0.08      0.19      0.14
    Total production (boe/d)             1,170     1,100       935       876
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West's production volumes have increased significantly since
2006 year-end. Growth in total revenue reflects increasing production.
Earnings fluctuate from quarter to quarter due to changes in depletion,
operating costs and provision for tax.
    Management directs readers to the appropriate interim period MD&A for
detailed analysis and explanation of the variance between individual quarters.

    
    PRODUCTION

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL
     (bbls/day)        343       393       (13)      347       407       (15)
    Natural gas
     (mcf/d)         8,112     4,660        74     7,987     4,368        83
    Total (boe/d)    1,695     1,170        45     1,678     1,135        48
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, total production grew
significantly as a result of successful drilling for natural gas. Crude oil
production is lower due to curtailment of high water producing wells at
Riviere. This crude oil production will remain shut in until we receive
Alberta Energy Utilities Board ("AEUB") approval to inject produced water into
the Wabamun A pool.
    Compared to the 2007 first quarter, second quarter total production rose
two percent. As previously outlined, current facility constraints are
restricting Riviere natural gas production.

    
    REVENUES

    Production Revenues

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL      1,791     2,302       (22)    3,455     4,301       (20)
    Natural gas      5,805     2,769       110    11,487     5,670       103
    -------------------------------------------------------------------------
    Petroleum and
     natural gas
     revenues        7,596     5,070        50    14,942     9,971        50
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Prices
                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Oil and NGL
     ($/bbl)         57.31     64.44       (11)    55.07     58.38        (6)
    Natural gas
     ($/mcf)          7.86      6.53        20      7.95      7.17        11
    Total production
     ($/boe)         49.23     47.65         3     49.20     48.54         1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    The 50 percent growth in revenues from the same periods one year ago
resulted from increased natural gas production as combined commodity prices
remained flat. For the six month period, oil price retreated marginally and
natural gas price increased slightly.
    Compared to the 2007 first quarter, second quarter total revenue is three
percent higher due, primarily, to increased natural gas volumes at comparable
commodity prices.

    
    ROYALTIES

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Crown              756       758         -     1,675     1,864       (10)
    Other              722       350       106     1,269       721        76
    ARTC                 -      (216)     (100)        -      (489)     (100)
    -------------------------------------------------------------------------
    Total royalties  1,478       892        66     2,944     2,096        40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Royalties

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
    ($/boe)           2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Crown             4.90      7.12       (31)     5.52      9.07       (39)
    Other             4.68      3.29        42      4.18      3.51        19
    ARTC                 -     (2.03)     (100)        -     (2.38)     (100)
    -------------------------------------------------------------------------
    Total royalties   9.58      8.39        14      9.69     10.20        (5)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, total royalties
increased as a result of higher natural gas production volumes. Wrangler
West's production from freehold lands, which are subject to a lower royalty
rate, moderates our overall royalty rate.
    The Government of Alberta cancelled the Alberta Royalty Tax Credit
("ARTC") program effective January 1, 2007. As a result, Wrangler West has not
accrued ARTC during 2007.

    
    OPERATING COSTS


                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Operating costs
     ($ thousand)    1,477       869        70     3,192     1,806        77
    Operating costs
     ($/boe)          9.58      8.17        17     10.51      8.79        20
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, operating costs rose
due to increased production volumes. On a per boe basis, operating costs in
the second quarter reflect increased costs through the sector.
    Compared to the 2007 first quarter, second quarter operating costs were
lower reflecting management initiatives to control costs. For the balance of
2007, we estimate operating costs of between $10.00 and $11.00 per boe.

    
    NETBACKS

    Field netbacks

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Light and
     medium crude
     oil ($/bbl)     27.24     40.99       (34)    24.39     36.80       (34)
    Natural gas
     ($/mcf)          5.12      4.24        21      4.97      4.14        20
    NGL ($/bbl)      33.02     53.80       (39)    37.08     52.12       (29)
    Combined
     ($/boe)         30.08     31.10        (3)    29.00     29.54        (2)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, combined field netbacks
were essentially unchanged from the same period one year ago.
    Compared to the 2007 first quarter, combined netbacks for the second
quarter were higher as natural gas price began to recover and oil price
strengthened.

    
    GENERAL AND ADMINISTRATIVE ("G&A")

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    G&A ($ thousand)   249       247         1       512       454        13
    G&A ($/boe)       1.62      2.32       (30)     1.69      2.21       (24)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three months ended June 30, 2007 the G&A decrease on a per boe
basis reflected increased production volumes and overhead efficiencies. 
During the first half of 2007, Wrangler West capitalized $421,000 (2006 -
$260,000) of G&A associated with exploration activities.
    Compared to the 2007 first quarter, second quarter G&A rate was lower by
eight percent as we capitalized a slightly larger component of G&A related to
exploration in the second quarter.
    Wrangler West has adequate office space and staff to accommodate
anticipated 2007 production increases and expects G&A to remain consistent or
to improve on a per boe basis.

    
    INTEREST EXPENSE

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Interest
     ($ thousand)      137        50       173       268        86       212
    Interest ($/boe)  0.89      0.47        89      0.88      0.42       110
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, interest expense
represented interest on the use of Wrangler West's revolving demand credit
facility.
    Compared to the end of the 2007 first quarter, at the end of the second
quarter bank indebtedness was lower.
    For the balance of 2007, as we complete our capital expenditures program,
Wrangler West's interest expense will reflect continued use of the credit
facility.

    
    STOCK-BASED COMPENSATION

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Stock-based
     compensation
     ($ thousand)      391        86       356       435       199       118
    Stock-based
     compensation
     ($/boe)          2.53      0.81       212      1.43      0.97        47
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West utilizes the fair value method for measuring stock option
expenses. In May 2007, the board of directors approved granting of 385,000
options to purchase common shares.
    For the three months ended June 30, 2007, Wrangler West capitalized
stock-based compensation of $212,118 (2006 - $57,118) and, for the six months
ended June 30, 2007, we capitalized $250,401 (2006 - $132,622).
    Compared to the 2007 first quarter, second quarter stock-based
compensation was higher, reflecting the second quarter granting of stock
options. In the 2007 first quarter, Wrangler West capitalized stock-based
compensation of $38,283 (2006 - $75,504).

    
    DEPLETION, DEPRECIATION AND ACCRETION ("DD&A")

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Depletion,
     depreciation
     and accretion
     ($ thousand)    3,122     1,430       118     6,175     2,898       113
    Depletion,
     depreciation
     and accretion
     ($/boe)         20.24     13.44        51     20.33     14.11        44
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    DD&A per boe increased compared to the same periods one year ago due to
higher finding and development costs experienced in the last half of 2006 and
the 2007 first quarter.  Wrangler West's second quarter drilling program was
delayed due to a prolonged spring break-up.
    Compared to the 2007 first quarter, there was a modest decline in DD&A
per boe resulting from reserves additions during the 2007 second quarter and
the associated capital expenditures.
    We expect drilling successes during the balance of 2007 to increase
Wrangler West's total proved reserves base which we anticipate will reduce
DD&A.

    
    INCOME TAXES

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Current income
     taxes             497      (329)     (251)      640         -         -
    Future income
     taxes            (325)      184      (277)     (160)      231      (169)
    -------------------------------------------------------------------------
    Total income
     taxes             171      (145)     (218)      479       231       107
    -------------------------------------------------------------------------
    ($/boe)
    Current income
     taxes            3.22     (3.09)     (204)     2.11         -         -
    Future income
     taxes           (2.11)     1.73      (222)    (0.53)     1.13      (147)
    -------------------------------------------------------------------------
    Total income
     taxes            1.11     (1.36)     (182)     1.58      1.13        40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    Wrangler West expects to be taxable in 2007. We will continue to expand
our exploration efforts which helps minimize our tax exposure, providing
exploration opportunities are within Wrangler West's predetermined risk
criteria.

    
    EARNINGS AND COMPREHENSIVE INCOME

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Net earnings and
     comprehensive
     income
     ($ thousand)      570     1,641       (65)      938     2,200       (57)
    Net earnings and
     comprehensive
     income ($/boe)   3.69     15.42       (76)     3.09     10.71       (71)
    Earnings
     - basic
     ($/share)        0.09      0.26       (65)     0.15      0.35       (57)
    Earnings
     - diluted
     ($/share)        0.08      0.25       (68)     0.14      0.33       (58)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three and six months ended June 30, 2007, Wrangler West's
earnings reflect both current and future tax provisions as well as higher DD&A
expense and higher overall operating costs for increasing production volumes.
    Compared to the 2007 first quarter, second quarter basic earnings were
50 percent higher, reflecting slightly lower operating costs increased
revenues and a lower provision for income tax.

    
    FUNDS FLOW FROM OPERATIONS AND LIQUIDITY

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
                      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Funds flow from
     operations
     ($ thousand)    3,757     3,340        12     7,387     5,528        34
    Funds flow from
     operations
     ($/boe)         24.35     31.39       (22)    24.32     26.91       (10)
    Funds flow from
     operations
     - basic
     ($/share)        0.59      0.53        11      1.16      0.87        33
    Funds flow from
     operations
     - diluted
     ($/share)        0.55      0.51         8      1.10      0.84        31
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the three months ended June 30, 2007, funds flow from operations
increased modestly as a provision for current tax offset higher production
volumes. The six month period increase reflects both higher production volumes
and a higher natural gas price during the 2007 first half.
    Compared to the 2007 first quarter, second quarter funds flow from
operations were relatively flat as oil production remained stable while
natural gas production increased modestly and we provided for current tax.
    At June 30, 2007, Wrangler West had a working capital deficiency,
including bank indebtedness, of $10.5 million ($10.9 million at December 31,
2006).
    During the 2007 second quarter, Wrangler West's revolving demand credit
facility increased to $17.5 million from $13.0 million. At June 30, 2007,
$8.2 million was drawn on the line. To achieve our 2007 capital expenditures
budget of $15 million, we will use funds flow from operations and the
revolving demand credit facility.

    
    TOTAL CAPITALIZATION

    -------------------------------------------------------------------------
    ($ thousand except where noted)                      as at June 30, 2007
    -------------------------------------------------------------------------
    Common shares outstanding (thousand)                               6,361
    Closing market price ($)                                           10.00
    -------------------------------------------------------------------------
    Market value of common shares                                     63,608
    Net debt                                                          10,502
    -------------------------------------------------------------------------
    Total capitalization                                              74,110
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    At June 30, 2007, Wrangler West's total capitalization was $74 million
based on the June closing price of $10.00 per common share. As at August 15,
2007, Wrangler West had 6,360,827 common shares outstanding.

    
    CAPITAL EXPENDITURES

                     Three months ended Jun 30       Six months ended Jun 30
    -------------------------------------------------------------------------
    ($ thousand)      2007      2006  % Change      2007      2006  % Change
    -------------------------------------------------------------------------
    Land costs         348       337         3       569       294        93
    Seismic            916        29     3,114     1,178       484       143
    Capitalized
     administrative
     expenses          236       130        82       421       260        62
    Drilling and
     completions     1,493     3,653       (59)    3,353     5,543       (40)
    Tangible
     production
     equipment
     gathering and
     systems           610       392        56     1,508       729       107
    -------------------------------------------------------------------------
    Total capital
     expenditures    3,603     4,540       (21)    7,030     7,310        (4)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    During the three months ended June 30, 2007, we drilled Wrangler West's
first horizontal well resulting in one oil well at Riviere. The balance of
capital expenditures related to completions for wells drilled previously,
recompletions, and tie-ins. During the 2007 second quarter, we completed a 3D
seismic program for three new exploration projects to identify additional
drilling locations for later in 2007.

    OUTLOOK

    Wrangler West's strategy is to continue to grow by exploration and
development drilling. We deploy funds flow from operations and a revolving
demand credit facility to initiate and develop our internally generated
exploration concepts and, ultimately, to add reserves. We expect commodity
prices and current production levels, as well as our available bank line, to
support our 2007 capital budget of $15 million. We have planned an aggressive
third quarter exploration and operations effort. We anticipate exploitation
opportunities at Riviere and further exploration activity will build an even
larger asset base for Wrangler West in 2007.

    Additional Information

    Additional information relating to Wrangler West Energy Corp. is filed on
SEDAR and accessible at www.sedar.com. To obtain copies of published corporate
information, contact JoAnne Dorval-Dronyk at Wrangler West Energy Corp. 1950,
444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8 or e-mail
JoAnne@wranglerwest.ca.



    
                         Wrangler West Energy Corp.
                           Interim Balance Sheets

                                                       June 30,  December 31,
                                                          2007          2006
                                                    (unaudited)
    -------------------------------------------------------------------------
    Assets
    Current assets
      Accounts receivable                         $  3,298,506  $  2,537,575
      Prepaid expenses                                 403,109       414,520
    -------------------------------------------------------------------------
                                                     3,701,615     2,952,095

    Property and equipment                          40,677,040    39,434,944
    -------------------------------------------------------------------------
                                                  $ 44,378,655  $ 42,387,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and shareholders' equity
    Current liabilities
      Bank indebtedness (note 2)                  $  8,192,889  $  8,993,235
      Accounts payable and accrued liabilities       5,371,292     4,818,048
      Current income taxes payable                     639,625             -
    -------------------------------------------------------------------------
                                                    14,203,806    13,811,283

    Asset retirement obligation                      1,715,967     1,579,133

    Future income taxes                              6,179,390     6,339,723
    -------------------------------------------------------------------------
                                                    22,099,163    21,730,139

    Shareholders' equity
      Share capital                                 11,070,257    11,070,257
      Contributed surplus (note 3)                   2,738,425     2,053,479
      Retained earnings                              8,470,810     7,533,164
    -------------------------------------------------------------------------
                                                    22,279,492    20,656,900

                                                  $ 44,378,655  $ 42,387,039
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    See accompanying notes to the interim financial statements


    On behalf of the Board of Directors,

    "James B. Howe"                "Randolph M. Charron"
    Lead Director                  Director



                         Wrangler West Energy Corp.
                       Interim Statements of Earnings
                            and Retained Earnings
                                 (unaudited)

                      Three months ended June 30    Six months ended June 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Revenue
      Petroleum and
       natural gas    $  7,595,892  $  5,070,381  $ 14,942,253  $  9,970,732
      Royalties, net
       of ARTC          (1,477,983)     (892,268)   (2,943,515)   (2,095,765)
    -------------------------------------------------------------------------
                         6,117,909     4,178,113    11,998,738     7,874,967

    Expenses
      Operating          1,477,344       869,327     3,192,156     1,806,336
      General and
       administrative      249,373       246,775       512,261       454,284
      Interest             137,248        50,270       268,084        85,945
      Stock-based
       compensation        390,534        85,677       434,545       198,932
      Depletion,
       depreciation
       and accretion     3,122,092     1,430,287     6,174,754     2,898,056
    -------------------------------------------------------------------------
                         5,376,591     2,682,336    10,581,800     5,443,553
    -------------------------------------------------------------------------
    Earnings before
     income taxes          741,318     1,495,777     1,416,938     2,431,414

    Current income
     taxes                 496,625      (328,524)      639,625             -
    Future income taxes   (325,333)      183,715      (160,333)      231,192
    -------------------------------------------------------------------------
                           171,292      (144,809)      479,292       231,192

    Net earnings and
     comprehensive
     income                570,026     1,640,586       937,646     2,200,222

    Retained earnings,
     beginning of
     period              7,900,784     5,499,725     7,533,164     4,940,089

    Retained earnings,
     end of period    $  8,470,810  $  7,140,311  $  8,470,810  $  7,140,311
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per
     share - basic    $       0.09  $       0.26  $       0.15  $       0.35
    Earnings per
     share - diluted  $       0.08  $       0.25  $       0.14  $       0.33
    -------------------------------------------------------------------------
    See accompanying notes to the interim financial statements



                         Wrangler West Energy Corp.
                             Interim Statements
                                of Cash Flows
                                 (unaudited)

                      Three months ended June 30    Six months ended June 30
                              2007          2006          2007          2006
    -------------------------------------------------------------------------
    Cash provided by (used in):

    Operating
      Net earnings    $    570,026  $  1,640,586  $    937,646  $  2,200,222
      Items not
       involving cash
        Depletion,
         depreciation
         and accretion   3,122,092     1,430,287     6,174,754     2,898,056
        Stock-based
         compensation      390,534        85,677       434,545       198,932
        Future income
         taxes            (325,333)      183,715      (160,333)      231,192
    -------------------------------------------------------------------------
                         3,757,319     3,340,265     7,386,612     5,528,402
        Change in
         non-cash
         operating
         working
         capital           663,410     2,406,931       198,840     3,413,602
    -------------------------------------------------------------------------
                         4,420,729     5,747,196     7,585,452     8,942,004

    Financing
      Increase
       (decrease) in
       bank indebt-
       edness           (1,488,800)     (341,503)     (800,346)      703,976

    Investing
      Additions to
       petroleum and
       natural gas
       properties       (3,602,878)   (4,540,044)   (7,029,614)   (7,309,586)
      Change in non-
       cash investing
       working capital     670,949      (865,649)      244,508    (2,336,394)
    -------------------------------------------------------------------------
                        (2,931,929)   (5,405,693)   (6,785,106)   (9,645,980)

    Cash and cash
     equivalents,
     beginning and
     end of period               -             -             -             -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary cash
     flow information
      Cash interest
       paid            $   138,193   $    47,606   $   263,369   $    81,824
      Cash taxes paid            -             -             -             -
    -------------------------------------------------------------------------

    See accompanying notes to the interim financial statements



                         Wrangler West Energy Corp.
                             Notes to the Interim
                             Financial Statements
              Three and six months ended June 30, 2007 and 2006
                                 (unaudited)

    

    Wrangler West Energy Corp. (the "Corporation") was incorporated on
March 17, 2000 under the Business Corporations Act (Alberta). The
Corporation's primary business activity is the exploration, development and
production of petroleum and natural gas in Alberta, Canada.
    The preparation of financial statements in conformity with Canadian
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the dates of the financial
statements and the reported amounts of revenue and expenses during the
reporting periods. Actual results could differ from those estimates.

    1. SIGNIFICANT ACCOUNTING POLICIES

    Management prepared the interim financial statements of the Corporation
    in accordance with generally accepted accounting principles in Canada.
    The interim financial statements have been prepared following the same
    accounting policies and methods of computation as the financial
    statements for the year ended December 31, 2006. Certain information and
    disclosures normally required as inclusions in the notes to the annual
    financial statements have been omitted or condensed. These interim
    financial statements and the notes thereto should be read in conjunction
    with the annual financial statements in the Corporation's 2006 annual
    report.

    On January 1, 2007, the Corporation adopted the new Canadian accounting
    standards for financial instruments - recognition and measurement,
    financial instruments - presentation and disclosures, and comprehensive
    income. The adoption of the new standards did not result in any
    adjustments to the recognition or measurement of the Corporation's
    financial instruments at January 1, 2007 or subsequently. The statement
    of comprehensive income and accumulated other comprehensive income have
    not been presented as the Corporation does not have any elements of other
    comprehensive income.

    At June 30, 2007, the carrying amount of the Corporation's financial
    instruments approximated their fair value due to their short-term
    maturities.

    Two newly issued Canadian accounting standards will require additional
    disclosure in the Corporation's financial statements commencing
    January 1, 2008 with respect to the Corporation's financial instruments
    as well as its capital and how it is managed.

    2. BANK INDEBTEDNESS

    The Corporation has a revolving demand operating credit facility with a
    Canadian chartered bank that has a maximum amount of $17,500,000. The
    facility bears interest at the bank's prime interest rate and is secured
    by a fixed and floating charge debenture of $30,000,000 over all of the
    property and assets of the Corporation. The facility is subject to an
    annual borrowing base review with the next annual review due on April 30,
    2008.

    3. SHARE CAPITAL

    
        (a) Stock options

            Common share options outstanding at June 30
            -----------------------------------------------------------------
                                                                        2007
            Outstanding, beginning of period                         865,000
            Granted                                                  397,000
            -----------------------------------------------------------------
            Outstanding, end of period                             1,262,000
            -----------------------------------------------------------------
            -----------------------------------------------------------------

            On January 26, 2007, the Corporation granted 12,000 options to
            purchase common shares at $8.00 per common share and, on May 22,
            2007, further granted 385,000 options to purchase common shares
            at $8.25 per common share.

            The Corporation estimated the fair value of each stock option
            grant on the grant date using the Black-Scholes option-pricing
            model. Assumptions used a risk free interest rate of 4 percent
            with volatility of 45 percent over the expected stock option life
            of five years resulting in a weighted average fair value of $2.94
            for employees and $5.72 for non-employees.

        (b) Contributed surplus

            The table below provides a reconciliation of contributed surplus
            for the period ended June 30, 2007.
            -----------------------------------------------------------------
                                                                        2007
            Balance, beginning of period                        $  2,053,479
            Stock - based compensation cost                          684,946
            -----------------------------------------------------------------
            Balance, end of period                              $  2,738,425
            -----------------------------------------------------------------
            -----------------------------------------------------------------

        (c) Per share amounts

            For the six months ended June 30, 2007, the weighted average
            common shares outstanding used in calculating net earnings per
            share were 6,360,827 basic and 6,718,813 diluted (June 30, 2006 -
            6,360,827 basic and 6,592,120 diluted). The calculation of
            diluted common shares for the six months ended June 30, 2007
            excluded 397,000 options, as they were anti-dilutive.
    

    Reader Advisory

    This document contains forward-looking statements, such as those relating
to results of operations and financial condition, capital expenditures,
financing, commodity prices, costs of production and the magnitude of oil and
natural gas reserves. By their nature, forward-looking statements are subject
to numerous risks and uncertainties that could significantly affect
anticipated results in the future and, accordingly, actual results may differ
materially from those predicted. The forward-looking statements contained in
this report are as of August 23, 2007 and are subject to change after that
date. Assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be imprecise
and, as such, readers should not rely unduly on forward-looking statements.
Except as required by law, Wrangler West Energy Corp. disclaims any intention
or obligation to update or revise any forward-looking statements whether as a
result of new information, future events or otherwise.

    Wrangler West Energy Corp. trades on the TSX Venture Exchange under the
    symbol "WX"

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





For further information:

For further information: Steven F. Johnson, President and Chief
Executive Officer, Steve@wranglerwest.ca, telephone: (403) 290-6800 or JoAnne
M. Dorval-Dronyk, Chief Financial Officer, JoAnne@wranglerwest.ca, telephone:
(403) 290-6807

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Wrangler West Energy Corp.

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