Wrangler West Reports 2009 First Quarter Results

    CALGARY, May 29 /CNW/ - Wrangler West Energy Corp. ("Wrangler West", the
"Company") (TSX-V "WX") May 29, 2009 - announces operating and financial
results for the three months ended March 31, 2009, together with comparative
data for the same period in 2008 and the year ended December 31, 2008.

                        2009 First Quarter Highlights

    Three months ended March 31                   2009       2008   % Change
    Crude oil and NGL (bbls/d)                     302        397        (24)
    Natural gas (mcf/d)                          5,682      6,965        (18)
    Total (boe/d)                                1,249      1,558        (20)
    Crude oil and NGL ($/bbl)                    40.49      82.88        (51)
    Natural gas ($/mcf)                           5.88       7.89        (25)
    Per boe ($)
    Petroleum and natural gas revenues           36.55      56.39        (35)
    Royalties                                    (5.57)    (10.86)       (49)
    Operating expenses                          (14.40)    (13.34)         8
    Field netback                                16.58      32.19        (48)
    General and administrative                   (2.87)     (1.74)        65
    Interest                                     (0.96)     (1.17)       (18)
    Current income tax                               -      (3.29)      (100)
    Funds flow from operations                   12.75      25.98        (51)
    Unrealized loss on commodity contracts           -      (6.70)      (100)
    Depletion, depreciation, and accretion      (26.38)    (23.32)        13
    Stock-based compensation                     (0.68)     (0.55)        24
    Future income tax recovery                    3.77       3.41         11
    Net loss                                    (10.54)     (1.18)       793
    Petroleum and natural gas revenues(1)        4,110      7,995        (49)
    Royalties                                     (627)    (1,539)       (59)
    Operating expenses                          (1,619)    (1,892)       (14)
    General and administrative                    (323)      (247)        31
    Interest                                      (108)      (166)       (35)
    Current income tax                               -       (467)      (100)
    Funds flow from operations                   1,433      3,683        (61)
    Unrealized loss on commodity contracts           -       (950)      (100)
    Depletion, depreciation, and accretion      (2,967)    (3,306)       (10)
    Stock-based compensation                       (76)       (78)        (3)
    Future income tax recovery                     424        483        (12)
    Net loss                                    (1,186)      (167)       608
    Outstanding shares
     (thousand, except where noted)
    Weighted average - basic                     6,391      6,361          -
    Weighted average - diluted                   7,623      6,847         (3)
    Funds flow from operations
     - basic ($/share)                            0.22       0.58        (62)
    Funds flow from operations
     - diluted ($/share)                          0.19       0.54        (65)
    Net loss - basic and diluted ($/share)       (0.19)     (0.03)       533
    Total assets ($ thousand)                   44,010     50,722        (13)

    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. This conversion rate does not represent a value equivalency
    at the wellhead. The Company calculates boe per day based on total
    production for the period divided by the number of days during the

    Review of 2009 First Quarter

    -   results reflect weak commodity prices

    -   revenue reached $4.1 million

    -   funds flow from operating activities $1.4 million

    -   capital expenditures $0.5 million

    -   operating expenses reduced

    -   budgeted 2009 capital expenditures $5.5 million

    First Quarter Production

    Wrangler West produced 1,249 barrels of oil equivalent (boe) per day,
lower by 20 percent compared to the same period one year ago. As a result of
our initiative to reduce capital expenditures from the 2008 second half
through the 2009 first quarter, the company has not added any new production.
Production volumes and normal declines are in line with our expectations.

    Commodity Prices and Risk Management

    The outlook for commodity prices remains uncertain. Record crude oil
inventories have kept oil prices in check. Wrangler West received $40.49 per
bbl during 2009 first quarter which is 51 percent lower than the crude oil
price received for 2008 first quarter. However, crude oil prices have recently
strengthened to almost $60 WTI.
    Natural gas comprises 75% of Wrangler West's production. During 2009
first quarter, the Company's natural gas price received was $5.88 per mcf,
lower by 25 percent from the comparative period. There is an industry-wide
expectation that natural gas will continue to soften throughout the remainder
of the summer. Recently, AECO daily prices have been in the $3.00 per mcf
range. Currently, Wrangler West has no commodity price contracts in place.

    Capital Expenditures

    Wrangler West's budgeted capital expenditure program is $5.5 million for
2009. During the first quarter, the Company invested $0.5 million on capital
projects. Throughout 2009, we will deploy capital conservatively in our
endeavour to maximize value from the investment of funds flow from operating
activities. Our basic capital program is structured to manage Wrangler West's
producing assets and to offset production declines with modest growth. As
commodity prices strengthen, Wrangler West will review and reassess both
expenditures and projects based on their potential rate of return and risk
    Our staff is actively pursuing prospects and identifying opportunities
which meet Wrangler West's risk profile. During spring break-up, we initiated
an independent engineering review of our Wabamun A pool development project
with the objective of enhancing production from this significant asset.

    Industry Conditions

    The 2009 first quarter has been characterized as one of the "most
challenging times in recent history" for Canadian producers. In Canada,
drilling activity for 2009 first quarter fell 35 percent versus the same
period a year ago. The world-wide economic downturn continues to challenge the
oil and gas companies, both large and small. As North American industries
reduced output to respond to the faltering economy in late 2008, the resulting
excess supply lowered demand for both crude oil and natural gas. Until the
North American economy regains confidence and industrial consumption rebounds,
we expect prices for crude oil and natural gas will remain relatively weak.
Economists have begun to comment about economic stability appearing on the
horizon. Crude oil prices have started to respond and we expect natural gas
prices could improve with the approach of the 2009 winter heating season.

    Creating Opportunities in Turbulent Times

    Both land sales in Alberta and drilling in western Canada are testing
record lows. The turbulence of 2009 commodity prices, especially for natural
gas, is challenging all oil and gas producers. Wrangler West's objective is to
create opportunities with the potential to add value for shareholders. In
this, as in previous downturns, there are always opportunities for small
exploration companies like Wrangler West. Access to land, large farm-ins and
overall transaction flow have improved significantly. Over the next two
quarters, we expect to see consolidation among junior exploration and
production companies. In recent weeks there has been some resurgence in equity
markets for larger companies which is positive for this industry. The recent
improvement in commodity prices has encouraged investors to cautiously
re-enter the junior oil and gas sector, a trend we hope will continue.

    Forward-looking Statements

    This press release contains certain forward-looking statements and
forward-looking information (collectively, "forward-looking statements")
within the meaning of Canadian securities laws. These statements may relate to
management's outlook, anticipated events or expected results and may include
statements regarding Wrangler West's future financial position and business
strategy; projected costs; capital expenditures; financial and operating
results; taxes, tax horizons and tax treatment; plans and objectives involving
financing; commodity prices; number, type, timing and tie-in of wells drilled
or recompleted; commencement and costs of production; and the magnitude of
crude oil and natural gas reserves.
    Statements relating to "reserves" are deemed forward-looking statements,
as they involve the implied assessment, based on certain estimates and
assumptions that the reserves described can be profitably produced in the
future. In some cases, readers can identify forward-looking statements by
terms such as "may", "will", "should", "expect", "plan", "anticipate",
"believe", "intend", "estimate", "predict", "potential", "continue" or other
similar expressions concerning matters that are not historical facts.
    Certain factors and assumptions are the basis for management's
forward-looking statements regarding: future corporate growth; results of
operations; supply and demand for commodities, their prices and volatility;
royalty rates or related incentives; performance of properties; business
prospects and other opportunities. Specifically, in projecting future
activities, certain assumptions are made about Wrangler West's ability to find
and develop economic crude oil and natural gas reserves; production of
discovered reserves; costs of material and services; access and timing of
access to production facilities and transportation; access to, and retention
of, qualified and experienced staff; and changes in government regulations.
While management considers the assumptions made are reasonable, based on
information currently available, they may prove to be incorrect. 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. Wrangler West's business risks arise from uncertainties involving,
but not limited to: crude oil and natural gas commodity prices; interest and
currency exchange rates; environmental and safety issues; surface access
timing and costs; and financial and liquidity considerations. Additional risk
arises from, among other factors, the production performance of existing
properties, changes in regulatory standards and uncertain results from capital
expenditure programs.
    Financial outlook information contained in this press release about
prospective results of operations, financial position or cash flows is based
on assumptions about future events, including economic conditions and proposed
courses of action, from management's assessment of relevant information
currently available. Readers are cautioned that: a) such financial outlook
information contained in this press release should not be used for purposes
other than for which it is disclosed herein; and b) the list of risk factors
cited is not exhaustive.
    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 or
financial outlooks. Wrangler West provides this information for the purpose of
reporting financial and operational results for the three months ended March
31, 2009. Wrangler West disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, other than as required under securities laws.

    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, Chief Financial Officer at Wrangler
West Energy Corp. 1950, 444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8
or e-mail JoAnne@wranglerwest.ca.

    Corporate Profile

    Wrangler West is a Canadian junior oil and natural gas producer which has
been building production and assets through exploration in Alberta. Since
inception, our mandate has been to use the drill bit to add shareholder value.
We expect disciplined management of our operations and production portfolio
will create sufficient funds flow to support ongoing operations. Wrangler West
will continue to reinvest funds flow from operations and other available
capital to protect and add future value. Wrangler West trades on the TSX
Venture Exchange under the symbol "WX".

For further information:

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

Organization Profile

Wrangler West Energy Corp.

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