April 29, 2008 09:00 ET

Tuscany Announces Financial and Operating Results for the Year Ended December 31, 2007 and Filing of Reserve Data Report

CALGARY, ALBERTA--(Marketwire - April 29, 2008) - Tuscany Energy Ltd.(TSX VENTURE:TUS) -

Revenue for 2007 totaled $1.9 million compared with $2.2 million in 2006. The Company reported negative cash flow from operations of $108, 000 compared with cash flow of $367,000 or $0.01 per share in 2006. Tuscany reported a loss for the year of $836,000 or $0.03 per share versus a net loss of $664,000 or $0.03 per share in 2006.

Capital expenditures for 2007 totaled $1.25 million compared with $2.5 million in 2006 and were financed by bank borrowings, a $1.0 million flow-through share financing and debt. Tuscany ended the year with a net debt of $3.1 million compared with $2.7 million at the beginning of the year.


The Company's independent reserve evaluation by McDaniel & Associates Consultants Ltd., effective December 31, 2007 ("reserves report"), was prepared utilizing the methodology and definitions as set out under National Instrument 51-101. Based on the reserves report, Tuscany's 2007 proven plus probable reserves, utilizing forecast prices decreased from 672 thousand barrels of oil equivalent ("Mboe") at December 31, 2006 to 604 Mboe at December 31, 2006. The present value of the reserves at December 31, 2007, using a 10% discount rate was $8.0 Million.

Years Ended December 31
2007 2006
Total revenue $ 1,896,253 $ 2,195,359
Cash flow from operations (108,338) 367,398
per share, diluted - 0.01
Loss for the year (836,125) (663,897)
per share, diluted (0.03) (0.03)
Capital additions 1,259,623 2,514,575
Dispositions - 156,000
Net current debt 3,125,242 2,756,780
Total assets $ 9,140,995 $ 8,756,461
Total shares outstanding 36,550,836 26,550,836
Natural gas (Mcfd) 228 367
Heavy oil and NGLs (Bopd) 92 101
BOEd (6 Mcf = 1 Bbl) 130 162
Product Prices
Natural gas ($/Mcf) 6.23 6.16
Heavy oil and NGLs ($/Bbl) 47.53 45.28

Reserves (proved plus probable, future costs
and prices)
Gas (Mmcf) 776.9 825.0
Oil (MBbl) 474.9 534.0
BOE (Thousands) 604.1 672.0

Present value, before tax ($Millions at 10%) $ 7,977.0 $ 9,955

Additional information including Tuscany's 2007 annual Financial Statements and associated Management's Discussion and Analysis and 2007 Oil and Gas Reserves Disclosure (NI 51-101) can be found on the SEDAR website at www.sedar.com.


Tuscany wishes to announce the appointment of Charles A. Teare as Chief Financial Officer.


The Company remains optimistic as a more positive outlook for the energy industry could lead to a significant improvement in market conditions during 2008.

Additional production from Tuscany's Wildwood well in Alberta should offset production declines in Saskatchewan. At the end of Q1 2008, the Company's production is estimated to have increased to over 220 BOEd. This production increase, combined with record high oil prices, should bring the Company's balance sheet to a healthier state by mid-year. The Company continues to evaluate various alternatives to enhance shareholder value and the future of Tuscany.

As the Company continues to focus on optimizing its assets, Tuscany plans to carefully manage its cash and allocate its remaining 2007 flow-through obligations of $800,000 within its core areas that will ultimately create additional cash flow and increase the company's production and reserves.

Tuscany Energy Ltd. is an emerging junior oil and gas company engaged in the acquisition, exploration and development of oil and natural gas reserves in western Canada.

Greg T. Busby, President & CEO

BOE Presentation - The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio 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. All BOE conversions in this report are derived by converting gas to oil in the ratio of six Mcf of gas to one Bbl of oil.

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

    Greg T. Busby
    President & CEO
    (403) 264-2398
    (403) 264-2399 (FAX)
    Robert W. Lamond
    (403) 269-9889
    (403) 269-9890 (FAX)