Triton Energy Corp.

Triton Energy Corp.

November 24, 2008 16:47 ET

Triton Announces Third Quarter 2008 Results

CALGARY, ALBERTA--(Marketwire - Nov. 24, 2008) - Triton Energy Corp. (TSX VENTURE:TEZ) ("Triton" or the "Corporation") announces financial and operating results for the three and nine months ended September 30, 2008. Triton has filed its unaudited financial statements for the three and nine months ended September 30, 2008 and the accompanying Management's Discussion and Analysis with Canadian securities regulatory authorities. These filings are available for review at and on the Corporation's website,

Highlights of the Third Quarter of 2008

- Petroleum and natural gas sales increased 89% to $3.70 million compared to $1.95 million in the third quarter of 2007.

- Funds from operations increased 175% to $1.89 million or $0.05 per share compared to $0.69 million or $0.02 per share in the third quarter of 2007.

- Net income totaled $283,114 compared to a net loss of $563,086 in the third quarter of 2007.

- Production increased 24% to an average of 795 barrels of oil equivalent ("boe") per day during the quarter compared to an average of 643 boe per day during the third quarter of 2007.

- Capital expenditures totaled $4.44 million, of which $3.47 million was expended on drilling and completions, $0.82 million on land and seismic and $0.15 million on facilities.

- On July 2, 2008 Triton closed a sale of its 25% non-operated working interest in three (0.75 net) natural gas wells in the Girouxville area for $1 million, with an effective date of July 1, 2008.

- Triton drilled three (3.0 net) operated wells resulting in two (2.0 net) successful natural gas wells and earned a 50% working interest in one successful non-operated dual zone natural gas and crude oil well.

Financial Summary
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
Financial ($000's except
for per share amounts) (unaudited)(unaudited)(unaudited)(unaudited)
Petroleum and natural gas sales 3,700 1,953 11,261 6,361
Funds from (used in) operations(1) 1,891 687 5,416 2,638
Per share basic & diluted(1) 0.05 0.02 0.15 0.10
Net earnings (loss) 283 (563) 587 (889)
Per share basic & diluted(2) 0.01 (0.02) 0.02 (0.03)
Working capital (5,660) (1,981) (5,660) (1,981)
Capital expenditures(3) 4,441 4,759 11,813 13,290
Total assets 36,808 27,691 36,808 27,691
Shareholders' equity 24,257 21,496 24,257 21,496

(1) Funds from (used in) operations is a non-GAAP term and the Corporation
calculates this measure as cash provided from operations before changes
in non-cash operating working capital.
(2) At September 30, 2008 there were 3,150,000 options to purchase common
shares and 900,000 non-transferable common share purchase warrants
outstanding that have not been included in the calculation of the
weighted average shares outstanding as the effect would be
(3) Excludes asset retirement obligations and dispositions.

Operating Summary
Three months ended Nine months ended
September 30, September 30,
2008 2007 2008 2007
Crude oil (bbls per day) 20 23 28 15
Natural gas (mcf per day) 4,645 3,721 4,577 3,376
BOE per day (6:1) 795 643 791 578
Netback per boe (6:1)
Petroleum and natural gas sales $ 50.61 $ 33.01 $ 51.98 $ 40.34
Royalties, net of ARTC $ (10.20) $ (7.31) $ (10.58) $ (9.59)
Operating expenses $ (7.79) $ (8.32) $ (9.01) $ (7.16)
Transportation expenses $ (1.81) $ (1.39) $ (1.80) $ (1.54)
Operating netback $ 30.81 $ 15.99 $ 30.59 $ 22.05


Tie-in operations are proceeding at an operated 100% working interest dual zone gas well at Newton and at an operated 100% working interest light oil well at Sullivan Lake with both wells expected to commence production on or about December 1, 2008. At Lanaway, tie-in operations have been completed on a non-operated 50% working interest dual zone light oil and natural gas well with start-up production having commenced on November 8, 2008.

With these three (2.5 net) wells successfully on production and accounting for the recently announced (November 20, 2008) sale of production and related lands at Inland, Triton anticipates a 2008 year-end exit production rate of approximately 1,100 barrels of oil equivalent per day.

Triton currently plans to drill one (1.0 net) additional operated well before year-end in the Sullivan Lake area and up to three (3.0 net) operated wells in the Sullivan Lake and Newton areas in the first quarter of 2009.

In the first quarter of 2009 the Corporation will also be participating in a potential high impact well (the "Test Well") in the Tay River area in the foothills of Alberta. As announced on November 17, 2008 the Test Well is licensed to a total depth of 5,462 meters and is targeting a Leduc reef formation that has been identified on 3-D seismic data. Geological and seismic interpretation suggests that the Test Well is targeting a structure similar in size to the structure that hosts the Tay River Leduc gas pool located approximately 12 kilometers north-northeast of the Test Well.

The Test Well is expected to spud in January and take approximately 145 days to drill to total depth. Triton has budgeted $4 million for its share of the costs to drill, case and complete, cap or abandon the Test Well. Upon fulfillment of its earning obligations Triton will have a 12.5% working interest in the Test Well, Section 27-35-11W5M and ten (10) additional contiguous sections of land. The cost of the Test Well is being allocated to the Corporation's 2008 capital expenditures budget and will not affect other capital expenditures plans for the remainder of 2008. A major oil and gas producer is the operator of the Test Well.

Triton remains committed to adding shareholder value despite the collapse in the share prices of publicly traded companies worldwide over the past few months. Under the provisions of a Normal Course Issuer Bid ("NCIB") announced on October 7, 2008 and as amended and announced on November 11, 2008 the Corporation has been able to repurchase and cancel 708,500 of its shares at depressed stock prices. The Corporation intends to continue to buy back shares at these market levels. Triton remains confident that the Alberta economy will overcome the current challenges and improve to more normal conditions. Energy prices are expected to rebound as supplies decline due to depressed exploration levels and demand normalizes in the marketplace. The Corporation is focused on adding shareholder value while carefully monitoring its business environment on a go-forward basis.

Triton currently plans to finance the balance of its 2008 capital expenditures program and the NCIB utilizing funds from operations and available credit facilities. A capital expenditures budget for 2009 will be announced prior to year-end.

Triton is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TEZ".

Forward-Looking and Cautionary Statements

This news release may include forward-looking statements including opinions, assumptions, estimates and management's assessment of future plans and operations, budgeted capital expenditures and funding thereof, wells to be drilled, timing of drilling of wells and expected depths, budgeted cost of wells, commencement of production from wells and year-end production rate. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Corporation believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, results from testing, production, marketing and transportation, the volatility of oil and gas prices, currency fluctuations, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, changes in oil and gas acquisition and drilling programs, delays resulting from inability to obtain required regulatory approvals, delays resulting from inability to obtain drilling rigs and other services, delays in tie-in operations, results from testing, environmental risks, competition from other producers, imprecision of reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by Triton with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, as no assurances can be given as to future results, levels of activity or achievements. Except as required by applicable securities laws, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

While geological and seismic interpretation suggests that the Test Well is targeting a structure similar in size to the structure that hosts the Tay River Leduc gas pool located approximately twelve kilometers to the north-northeast, there is no assurance that the Test Well will be successful or have similar results to wells in the Tay River Leduc gas pool.

Disclosure provided herein in respect of barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cubic feet of natural gas to 1 barrel of oil 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 does not accept responsibility for the adequacy or accuracy of this news release.

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