Paris Energy Inc.
TSX VENTURE : PI

October 31, 2007 09:00 ET

Paris Announces Financial and Operating Results for the First Nine Months of 2007 and Appointment of Chief Financial Officer

CALGARY, ALBERTA--(Marketwire - Oct. 31, 2007) - Paris Energy Inc. (TSX VENTURE:PI) announces its financial and operating results for the first nine months ended August 31, 2007.

During the first half of fiscal 2007, Paris sold all of its oil and natural gas assets. Concurrent with the sale, the company appointed a new management team and consolidated its stock on a 10 for 1 basis.

Subsequent to the end of the quarter, Paris has drilled and recently completed a well at Killam. During a sixty hour production test, the Killam well produced 390 barrels of oil and 960 thousand cubic feet of natural gas. While encouraging, these results are from a test of limited duration and should not be construed as indicative of the long term potential of the well. Paris has been pursuing farmin and land acquisition opportunities on internally generated prospects and has acquired prospective lands in the Killam, Retlaw, Enchant, Craigmyle, Iron Springs and Keho Lake areas of Alberta. Paris plans to drill wells on natural gas prospects at Craigmyle and Enchant prior to year-end.

Financial

During the first nine months of 2007, the company had total oil and gas revenues of $771,675 and a cash flow deficiency from operations of $366,582.



Highlights
(unaudited)
Nine months ended August 31, 2007 2006
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Financial:
Total Revenue $ 771,675 $ 1,667,411
Cash flow from (used for) operations $ (366,582) $ 346,205
Per share, basic & diluted $ (0.04) $ 0.04
Net income (loss) $ (77,106) $ (2,677,342)
Per share, basic & diluted $ (0.01) $ (0.28)
Capital expenditures $ 1,162,428 $ 3,777,963
Working capital $ 2,605,767 $ (820,343)
Total shares outstanding 9,552,347 9,552,347

Operations:
Production
Natural gas (Mcf/d) 299 747
Crude oil (Bbl/d) 9 2
NGL(Bbl/d) 1 1
BOE (BOE/d) 59 128

Product Prices
Gas ($/Mcf) 7.24 7.80
Oil ($/Bbl) 54.56 66.96
NGL ($/Bbl) 58.06 59.63


Management Addition

Paris is pleased to announce the addition of Greg Smith, CA as Chief Financial Officer. Greg has over twenty years of experience and is a welcome addition to the Paris team.

SEDAR Filings

Further information regarding financial and operating results may be obtained at www.sedar.com, where the Company's MD&A and financial statements have been filed.

READER ADVISORY

Readers should be aware that substantially all of the oil and natural gas assets of the Company have been sold as well as the appointment of new Management, therefore, historical information has limited value in assessing future performance.

Boes may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one 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.

Statements in this news release contain forward-looking information including expectations of future production, plans for and results of exploration and development activities and other operational developments and components of cash flow and earnings. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices, and exchange rate changes. Industry related risks include, but are not limited to; operational risks in exploration, development and production of oil and gas and production risks associated with dependence on third party owned and operated production facilities, availability of skilled personnel and services, failure to obtain industry partner, regulatory and other third party consents and approvals, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of reserves, production, costs and expenses. The risks outlined above should not be construed as exhaustive. Readers are cautioned not to place undue reliance on this forward-looking information. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

Readers are further cautioned that the preparation of financial statements in accordance with Canadian generally accepted accounting principles ("GAAP") requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates may change, having either a negative or positive effect on net income as further information becomes available, and as the economic environment changes.

The terms "cash flow from operations", "cash flow" and "cash flow per share" are not recognized measures under GAAP. Management believes that in addition to net income, cash flow is a useful supplemental measure as it provides an indication of the results generated by Paris' principal business activities before the consideration of how these activities are financed or how the results are taxed. Investors are cautioned, however, that this measure should not be construed as an alternative to net income determined in accordance with GAAP as an indication of the Company's performance. The Company's method of calculating cash flow may differ from other companies, especially those in other industries and accordingly may not be comparable to measures used by other companies. The Company calculates cash from operations as cash from operating activities before the change in non-cash working capital related to operating activities.

Contact Information

  • Paris Energy Inc.
    M. Elizabeth Burke-Gaffney
    President
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    Robert L. (Locke) McPherson
    Chief Executive Officer
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    Robert W. Lamond
    Chairman
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    700, 635 - Eighth Avenue S.W.
    Calgary, Alberta T2P 3M3