Glamis Resources Ltd.

Glamis Resources Ltd.

May 29, 2009 09:00 ET

Glamis Q1 Operating Results

CALGARY, ALBERTA--(Marketwire - May 29, 2009) -


Glamis Resources Ltd. (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) ("Glamis" or "the Company") is pleased to announce its financial and operating results for the three months ended March 31, 2009.

Glamis' first quarter 2009 highlights are as follows:

- Production averaged 513 boe/d (100% oil) for Q1/09; a 70% increase compared to Q1/08.

- Expanded its bank line to $10.1 million representing an increase of 23% relative to December 31, 2008.

- Increased its land holdings by adding an additional 2,328 acres in southeast Saskatchewan and 892 acres in southwest Manitoba.

During the first quarter, Glamis' activity levels were held to a minimum. From an engineering perspective we focused our efforts on production optimization in southeast Saskatchewan. On the geological side Glamis' team focused on generating new ideas in southeast Saskatchewan and southwest Manitoba.


Three Three
Months Months
Ended Ended
Mar. 31 Mar. 31 %
2009 2008 Change
Petroleum & natural gas revenue (in 000's) $ 1,975 $ 2,370 (17)
Funds flow from operations (in 000's) 422 $ 1,157 (64)
Per share weighted average fully diluted $ 0.01 $ 0.05 (80)
Net income (loss) (in 000's) $ (914) $ 239 n/a
Per share net (loss) income weighted average
fully diluted $ (0.03) $ 0.01 n/a
Capital expenditures, net (in 000's) $ 742 $ 2,583 (71)
Working capital (in 000's) $ (7,503) $ 1,562 n/a

Crude oil & NGLs (bbls/d) 513 301 70
Natural gas (mcf/d) - 32 n/a
Total (boe/d) 513 306 67

Crude oil & NGLs ($/bbl) $ 42.52 $ 85.67 (50)
Natural gas ($/mcf) - $ 8.73 n/a
Average ($/boe) $ 42.52 $ 85.15 (50)

Netbacks ($/boe)
Petroleum & natural gas revenue $ 42.52 $ 85.15 (50)
Processing $ 0.26 - n/a
Royalties $ (2.79) $ (7.41) (62)
Operating costs $ (17.68) $ (19.07) (7)
Field netback $ 22.31 $ 58.67 (62)


Throughout the balance of 2009 Glamis will focus its efforts on drilling locations generated geologically and identified on 3D seismic data shot in 2008. We have tied up five exciting new light oil prospects which, if successful, could have a significant impact on Glamis' share value. Glamis anticipates testing each of these exploratory prospects by year end.

Our first exploratory drilling location was rig released on May 24, 2009. Drilling results were encouraging and the well will undergo production testing over the next couple of days. Additional locations have been surveyed.

In addition to our exploration prospects, Glamis has a low risk development drilling inventory of over 20 locations targeting light oil in southeast Saskatchewan.

As a compliment to the Company's drilling program, Glamis will continue to seek out acquisition opportunities that match the Company's long-term growth strategy of controlling operatorship, choosing areas that allow for all-season access, reservoirs that provide long-life reserves and prospects that enhance shareholder value.

In summary, Glamis remains focused on exploring for light oil reserves in southeast Saskatchewan and southwest Manitoba.

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 and assumptions including, without limitation, risks and assumptions 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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