Angle Energy Inc.

Angle Energy Inc.

April 08, 2009 06:30 ET

Angle Energy Inc. Provides Q1 2009 Operational Update and Executive Appointments

CALGARY, ALBERTA--(Marketwire - April 8, 2009) - Angle Energy Inc. (TSX:NGL) ("Angle") announces operational results for the first quarter of 2009 and the following executive appointments.

Operational Results for Q1 2009

The estimated and unaudited operational results for the Company in the first quarter of 2009 are as follows:

- Average first quarter production of approximately 7,600 barrels of oil equivalent per day ("boe/d"), representing a year over year increase of 39% from average production of 5,450 boe/d in the first quarter of 2008.

- Completed tie-in of 5 wells during the quarter, 2 (2.0 net) in Ferrier, and 3 (3.0 net) in Harmattan.

- Drilled 2 gross (0.9 net) development wells in Ferrier with 100% success. The wells encountered pay in the Ellerslie and Ostracod formations, with one of the wells (0.4 net) a successful follow up of the prolific Ostracod channel drilled in 2008.

- Drilled 1 gross (1.0 net) development well in Harmattan in the Mannville 'B' sand. The well was successful and was tied in during the quarter.

- Drilled the Deanne/Rough exploratory well, at 100% working interest, to a total depth of 3,621 meters. Drilling operations were conducted in forty-eight days, at a cost of approximately $4.2 million in line with budgeted expectations. The target Glauconitic reservoir zone was not present in sufficient quality. A secondary zone in the Viking was completed and was initially encouraging with high gas flow rates and pressures but over an extended test period completed on April 6, reservoir depletion was evident. Angle will conduct a second pressure build up to confirm the degree of depletion and is evaluating the economics of tie-in of the well.

- Drilled 2 gross (2.0 net) exploratory wells in Pembina, and cased both wells for completion. The target Nordegg sand was encountered but was low in permeability and did not yield commercial results upon testing. The two wells tested separate seismic features and were stand alone plays with neutral impact to the prospectivity of the Angle Pembina land block.

- Acquired 13 sections (8320 acres / 3328 hectares) of Crown mineral rights in our core areas at an average price per hectare of $190.41.

The Company experienced a successful operational quarter, including completing a key facility project. Angle completed the installation of compression in Harmattan for the 11-29 Elkton well which will have a positive impact on production in the second quarter of 2009. Development drilling in both Ferrier and Harmattan yielded successful results and new production additions are anticipated in the second quarter of 2009. Wells brought on production in the second quarter will be eligible for the Alberta Crown royalty relief program announced March 3, 2009, whereby initial production will have a maximum 5 percent royalty rate on the first 0.5 BCF of gas produced.

Exploration drilling made up a significant portion of Angle's activities in the first quarter of 2009. Although the initial wells in Deanne and Pembina were not successful, the Company's guidance of average production in the range of 7,500 to 7,600 boe/d for the first half of 2009 is unchanged due to the development in Harmattan and Ferrier. Exploration results are not relied upon in our budgeted growth model. Exploration is, by nature, higher risk than development activity but can also yield high reward and accelerated growth for the Company when success is achieved. The high impact play at Lone Pine, which would provide material value if successful, is the next primary exploration focus for Angle. Regulatory review is ongoing on the initial sour gas locations being prepared for drilling, and currently these locations are scheduled for the third and fourth quarters of 2009. The regulatory process may create additional delays and this remains as an execution risk for the initial wells in the Lone Pine play.

Currently, Angle is evaluating the March 3, 2009, Alberta Government Royalty Incentive program as it relates to Angle's development drilling. Future guidance will be forthcoming on potential additional activity this program may stimulate in latter half of 2009.

Executive Appointments

Angle drilled our first well in 2005 and has experienced significant growth to 7,600 boe/d, all through the successful drilling of internally generated plays. The Company's next growth target to an intermediate producer (greater than 10,000 boe/d) will be reached by a combination of our technical management style, our strong drilling pedigree, and the application of both when assessing acquisition opportunities. In recognition of the relative strengths within the Company to best achieve this goal, we are pleased to announce the following executive changes and appointments:

Gregg Fischbuch will focus primarily on prospect development as well as strategic corporate planning and will continue to provide guidance as Chief Executive Officer. Gregg's talents in the field of exploration have been demonstrated by the number of prolific wells Angle has discovered in its four years of drilling operations.

Heather Christie-Burns has been promoted to President and will retain her role as Chief Operating Officer of the Company. Heather is responsible for key decision making regarding operations and overall direction of Angle, and will also be instrumental in communications with shareholders and the public market.

Matthew Mazuryk has been promoted to Vice President, Engineering from Manager of Engineering. Matt's background in acquisition evaluation and his commercial engineering expertise and prudent capital management skills bring significant value to the Company and broaden the scope of the executive management team.

The executive appointments and changes are effective immediately.

About Angle

Angle Energy Inc. was founded in 2004 for the purposes of participating in oil and gas exploration, development and production in Canada. Angle trades on the TSX under the symbol "NGL". The Company's focus is on generating and developing its own prospects and on the acquisition of undeveloped lands directly or through farm-ins. Angle has two principal producing properties, located in west central Alberta and emerging prospects also located in Alberta. These emerging projects are targeting large conventional gas plays.

Basis of Presentation

Production information is commonly reported in units of barrel of oil equivalent ("boe"). For purposes of computing such units, natural gas is converted to equivalent barrels of crude oil using a conversion factor of six thousand cubic feet of gas to one barrel of oil. This conversion ratio of 6:1 is based on an energy equivalent conversion for the individual products, primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Such disclosure of boes may be misleading, particularly if used in isolation.

Future Outlook and Forward-Looking Information

Information set forth in this press release contains forward-looking statements, primarily with respect to expected and targeted production growth and are made as of April 8, 2009 and based on assumptions and analysis as of that date, by Angle in light of its experience, current conditions and expected future development in the areas it is currently active and other factors it believes are appropriate in the circumstances. By their nature, these forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Angle's control, including greater than anticipated declines in existing production, mechanical failures or inability to access production facilities; the unanticipated encroachment of water or other fluids into the producing formation; and, the inability to drill, complete and tie-in wells on schedule due to a lack of oilfield services being available on a cost efficient basis, poor weather, the inability to negotiate surface access or regulatory delays. The targeted growth production increase to 10,000 boe/d is subject to all the aforementioned risks and uncertainties, as well as those risk factors identified by Angle's MD&A and Annual Information Form in the most recently complete financial year, all of which are on SEDAR at and including the impact of general economic conditions, industry conditions, volatility of commodity prices, environmental risks, competition from other industry participants, stock market volatility and ability to access sufficient capital from internal and external sources.

Readers are cautioned that the assumptions and factors discussed in this press release are not exhaustive and that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise, and as such, undue reliance should not be placed on forward-looking statements. Angle's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits that Angle will derive there from. Unless required by law, Angle disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward looking statements are expressly qualified by these cautionary statements.

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