Aspen Group Resources Corporation
TSX : ASR

Aspen Group Resources Corporation

November 16, 2006 16:30 ET

Aspen Group Reports 2006 Third Quarter and Nine-Month Results

CALGARY, ALBERTA--(CCNMatthews - Nov. 16, 2006) - Aspen Group Resources Corporation (TSX:ASR) ("Aspen" or the "Company"), today reported its financial results for the three and nine-month period ended September 30, 2006. Aspen reports its results in US dollars.

For the nine-month period ended September 30, 2006, Aspen reported revenues from continuing operations of $2.80 million compared to revenues of $2.69 million recorded in the same period last year. For the nine-month period, Aspen reported a net loss from continuing operations of $2.12 million or $0.03 per share versus a net loss from continuing operations of $2.63 million or $0.04 per share in the same period in 2005.

For the three-month period ended September 30, 2006, Aspen reported revenues from continuing operations of $0.91 million compared to $1.15 million recorded in the same period last year. For the three-month period, Aspen reported a net loss from continuing operations of $0.74 million or $0.01 per share versus a net loss from continuing operations of $0.89 million or $0.01 per share in the same period in 2005.

Results for the three and nine-month period were impacted by several factors including reduced production from Aspen's Western Canadian properties. Net production during the nine-month period in 2006 averaged 207 boe/d (barrel of oil equivalent/day, 6:1 conversion) as compared to 260 boe/d in the same period in 2005. The year-over-year decrease in production is primarily due the disposition of producing assets in the second quarter of 2006, which represented 66 boe/d. Aspen's wholly owned subsidiary, United Cementing and Acidizing, Inc., reported a 60 percent increase in revenue in the nine-month period in 2006, generating revenues of approximately $1 million.

For the nine-month period ended September 30, 2006, general and administrative expenses decreased to $1.73 million, from $2.67 million in the same period in 2005. The 54 percent decrease was primarily due to a reduction in costs associated with the Company's on-going litigation. Oil and gas production expense increased from $0.78 million in 2005 to $0.93 million during the nine-month period in 2006. The increase is related to costs associated with water handling and disposal in Manitoba. The Company has completed the drilling of a disposal well in the area. Once the well is permitted and activated, it is expected to significantly reduce costs of water disposal and improve overall profitability in the area.

Comparative summary results for the three and nine-month periods ended September 30, 2006 and 2005 are shown in US Dollars in the following tables:



Consolidated Summary Balance Sheet as at
----------------------------------------
(In US Dollars)
---------------------------------------------------------------------
Sept. 30, 2006 Dec. 31, 2005
---------------------------------------------------------------------
(unaudited) (audited)
---------------------------------------------------------------------
Assets
---------------------------------------------------------------------
Cash and Current assets $ 3,963,144 $ 3,712,630
---------------------------------------------------------------------
Proved oil and gas properties
(net of depletion) 8,220,634 6,679,977
---------------------------------------------------------------------
-
---------------------------------------------------------------------
Property, equipment and other assets
(net of depreciation) 988,763 699,921
---------------------------------------------------------------------
Total Assets $ 13,172,541 $ 11,092,528
---------------------------------------------------------------------

---------------------------------------------------------------------
Liabilities and Stockholders' Equity
---------------------------------------------------------------------
Current Liabilities $ 7,470,698 $ 3,344,600
---------------------------------------------------------------------
Long-term debt, net of
current maturities 202,101 225,131
---------------------------------------------------------------------
Asset Retirement Obligations 927,011 866,749
---------------------------------------------------------------------

---------------------------------------------------------------------
Stockholders' Equity 4,572,731 6,656,048
---------------------------------------------------------------------
Total Liabilities and
Stockholders' Equity $ 13,172,541 $ 11,092,528
---------------------------------------------------------------------


Consolidated Summary Statements of Operations
---------------------------------------------
(In US Dollars)
--------------------------------------------------------------------------
For the 3-month period For the 9-month period
ended ended
----------------------------------------------------
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2006 2005 2006 2005
----------------------------------------------------
(unaudited) (unaudited) (unaudited) (unaudited)
--------------------------------------------------------------------------
Continuing
Operations
--------------------------------------------------------------------------
Revenue $ 910,886 $ 1,152,018 $ 2,803,429 $ 2,689,490
--------------------------------------------------------------------------
Expenses 1,672,132 2,041,506 4,929,073 5,281,880
--------------------------------------------------------------------------
Loss from
Continuing Operations (761,246) (889,488) (2,125,644) (2,592,390)
--------------------------------------------------------------------------
Other expense (7,609) (7,491) (19,254) (33,158)
--------------------------------------------------------------------------
Recovery of
income taxes 29,160 - 29,160 -
--------------------------------------------------------------------------
Net loss from
continuing operations (739,695) (896,979) (2,115,738) (2,625,548)
--------------------------------------------------------------------------
Net loss per share $ (0.01) $ (0.01) $ (0.03) $ (0.04)
--------------------------------------------------------------------------
Weighted average
number of shares 74,763,037 74,335,896 74,763,037 74,335,896
--------------------------------------------------------------------------


For complete financial statements, please refer to the Company's filings with SEDAR at www.sedar.com

Aspen Group Resources Corporation is an independent oil and natural gas producer engaged in the acquisition, exploration, production and development of oil and natural gas properties in North America. Aspen's shares trade on the Toronto Stock Exchange under the symbol "ASR".

Portions of this document include "forward-looking statements", which may be understood as any statement other than a statement of historical fact. These statements are based on managements' current expectations and are subject to uncertainty and changes in circumstances. Forward-looking statements may include, but are not limited to, statements concerning estimates of recoverable hydrocarbons, expected hydrocarbon prices, expected costs, statements relating to the continued advancement of the Aspen's projects and other statements which are not historical facts. When used in this document, and in other published information of Aspen's, the words such as "could," "estimate," "expect," "intend," "may," "potential," "should," and similar expressions are indicative of a forward-looking statement. Although Aspen believe that their expectations reflected in the forward-looking statements are reasonable, the potential results suggested by such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. Forward-looking statements contained in this document are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other applicable securities laws. Certain factors that can affect Westchester's and Aspen's ability to achieve projected results are described in Aspen's Annual Report and Form 20-F, and other reports filed by both companies with the applicable Canadian securities regulatory authorities and by Aspen with the US Securities and Exchange Commission. Factors that can affect the ability of Aspen to achieve projected results include, among others, production variances from expectations, uncertainties about estimates of reserves, volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund operations, environmental risks, drilling and operating risks, risks related to exploratory and developmental drilling, competition, government regulation, the ability of Aspen to implement its business strategy, the potential that projects will experience technical and mechanical problems, geological conditions in the reservoir which may negatively impact levels of oil and gas production and changes in product prices and other risks not anticipated or disclosed in published material by Aspen. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.

Contact Information