Glamis Resources Ltd.

Glamis Resources Ltd.

November 21, 2008 09:00 ET

Drilling Success in the Third Quarter Increases Glamis' Production to Record Levels

CALGARY, ALBERTA--(Marketwire - Nov. 21, 2008) -


Glamis Resources Ltd. (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) ("Glamis" or the "Company") is pleased to announce its third quarter financial and operational results for the three and nine months ended September 30, 2008.

Glamis' third quarter highlights are as follows:

- Average production for the three months was 313 boe/d, 99% light oil. Production fluctuated significantly throughout the quarter as a result of a wet fall and battery start up issues. Production for the month of October averaged approximately 500 boe/d.

- Achieved record funds flow of $1.8 million ($0.06 per share) for the quarter and $4.7 million ($0.17 per share) for the nine month period.

- Average Company field netbacks were $78.51 in the quarter, a 157% increase over the same period in 2007.

- Invested $5.6 million in capital expenditures over the three month period:

-- Drilled 3 (2.5 net) successful horizontal wells in southeast Saskatchewan.

-- Expanded the Company's land position acquiring 900 acres in its core area of southeast Saskatchewan.

-- Completed a new oil battery at Queensdale which will allow for higher production volumes and is expected to reduce operating costs to between $8.00 and $10.00 per barrel on a go forward basis.

-- Glamis shot three 3D seismic programs during the 3rd quarter totaling over 26 square kilometers. Each of the programs successfully identified new drilling opportunities and continues to prove their value in southeast Saskatchewan.

- Subsequent to the quarter Glamis completed a $5.0 million private placement issuing 4.5 million flow through Class A shares at $1.10 per share; proceeds will be used towards the Company's ongoing drilling program.


Glamis is continuing with its drilling program in southeast Saskatchewan and has recently drilled two, 100% working interest horizontal wells. The first well, in the Arcola area, is expected to be on production by the end of November. The second well, at Queensdale, has been drilled and is currently being completed. Preliminary results are consistent with the other Queensdale wells drilled in the area. A third well has been spud in Queensdale and is currently drilling in the horizontal section.


Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
Sept. 30 Sept. 30 % Sept. 30 Sept. 30 %
2008 2007 Change 2008 2007 Change
Petroleum & natural
gas revenue 3,176 1,113 185 8,856 3,068 189
Funds flow from
operations 1,828 307 495 4,733 335 1313
Per share (weighted
average -diluted) 0.06 0.01 600 0.17 0.01 1700
Net income (loss) 541 (203) n/a 1,347 (2,588) n/a
Per share
(weighted average
diluted) 0.02 (0.01) n/a 0.05 (0.11) n/a
Capital expenditures,
net 5,640 2,999 88 11,334 8,522 33
Working capital
(deficit) (3,643) (858) 325 (3,643) (858) 325

Crude oil & NGLs
(bbls/d) 312 198 58 310 198 57
Natural gas
(mcf/d) 9 62 (85) 17 93 (82)
Total (boe/d) 313 208 50 313 214 46

Crude oil & NGLs
($/bbl) 110.45 59.35 86 103.59 52.42 98
Natural gas
($/mcf) 8.91 5.87 52 9.35 7.22 30
Average ($/boe) 110.21 58.16 90 103.19 52.22

Netbacks ($/boe)
Petroleum &
natural gas
revenue 110.21 58.16 89 103.19 52.22 98
Processing 0.30 0.36 (17) 0.18 0.40 (55)
Royalties (8.47) (4.32) 96 (9.42) (3.94) 139
Operating costs (23.53) (23.68) 0 (21.84) (17.87) 22
Field netback 78.51 29.80 163 72.11 30.81 134

Glamis has filed on SEDAR its unaudited financial statements and related Management's Discussion and Analysis ("MD & A") for the three and nine months ended September 30, 2008. Selected financial and operational information is outlined herein and should be read in conjunction with Glamis' unaudited financial statements and related MD & A which are available for review at or

Glamis Resources Ltd. is a junior oil and gas company formed to generate and develop its own prospects, acquire oil and gas properties and participate with joint venture partners in oil and gas exploration and development in the Western Canadian Sedimentary Basin. The Company's Class A shares and Class B shares trade on the TSX Venture Exchange under the symbols GLM.A and GLM.B. The Company currently has 24,190,442 Class A shares and 922,500 Class B shares outstanding.

FORWARD LOOKING STATEMENTS: Certain information regarding Glamis in this news release including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, expected production rates, drilling success rates, dates of commencement of production, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Glamis' operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and Glamis does not undertake any obligation to update publicly or to revise any of the included forward looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. The term "boe" may be misleading, particularly if used in isolation. A boe conversion of 6 Mcf: 1 bbl 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 has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information