Alexander Energy Ltd. Announces 2012 Q3 Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - Nov. 28, 2012) - Alexander Energy Ltd. (TSX VENTURE:ALX), ("Alexander" or the "Company") is pleased to announce its financial and operating results for the three and nine month periods ended September 30, 2012. This press release should be read in conjunction with the Company's September 30, 2012 condensed interim financial statements and MD&A filed on Sedar at www.sedar.com.

• Cash flow for Q3 2012 was $1.56 million, up 161% from Q3 2011 results.
  
  
• Oil production increased to 437 bbl/day, up 134% from Q3 2011 results. Gas production was down 34% as the Company shifts focus from gas to oil. The overall net BOE increase in Q3 2012 was 107 BOE/day as compared to Q3 2011. Gas contributed 39% of total production in Q3 2012, representing 11% of revenue and an estimated 10% of cash flow. These economics are driving the Company's shift to oil.
  
  
• The Board of Directors has made significant reductions to director's, legal and audit fees.
  
  
• With the new initiative to grow production and cash flow we have added four new people to support the engineering, geology, and land functions. In spite of these additions, the budget for 2013 forecasts a significant reduction in overall G&A expenses.
  
  
• The successful drilling and completion of the 15-12-56-27W4 well proved that our Detrital oil field extends to the north, and confirmed seismic interpretation. Based on this success the Company is planning to drill two Detrital wells in Q1 2013, at 12-12 and 4- 13-56-27W4.
  
  
• The mark to market value of the Company's oil production hedge for 2013 was $657,222 at September 30, 2012. As gas prices continue to improve the Company may hedge 50% of its gas production for 2013.
  
  
• Since September 30, 2012, Alexander has spent $800,000 (net) on field maintenance activities. This included the compressor turnaround at the central battery and processing facility, and workover projects on three wells. This resulted in production being down for approximately a week in October. The workover activities resulted in an increase in production of over 100 BOE/day.
  
  
• Cash flow for November and December, 2012 is anticipated to average $500,000 per month, and is expected to increase as the 15-12 well comes on stream.
  
  
• Alexander's total current net production is approximately 900 BOE per day, 55 percent of which is oil and natural gas liquids.

Financial Summary

Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Reference is made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.