Cumberland Oil & Gas Ltd.
TSX VENTURE : COG

November 17, 2010 18:03 ET

Cumberland Oil & Gas Ltd. Announces Filing of September 30, 2010 Interim Financial Statements and MD&A and Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Nov. 17, 2010) - Cumberland Oil & Gas Ltd. ("Cumberland") (TSX VENTURE:COG) has filed its unaudited interim financial statements and related Management's Discussion and Analysis ("MD&A") for the interim period ended September 30, 2010. Copies of these documents may be obtained under Cumberland's SEDAR profile via the SEDAR website at www.sedar.com.

Highlights



-- Received regulatory approval to commence injecting water into the
Valhalla Doe Creek 'M" Pool, as part of a secondary recovery project.
-- Drilled, completed and tied in 2 (2.0 net) light oil wells in the
Valhalla Doe Creek "M" Pool.
-- Converted 2 existing oil producers to water injection wells for the
Valhalla secondary recovery project.
-- Assembled exploration lands in the Peace River Arch area of Alberta
for both Doe Creek light oil and high impact natural gas.
-- Increased production volumes to 68 boepd, 19% higher than the same
period last year.
-- Closed a flow-through common share private placement financing for
gross proceeds of $907,500.
-- Positive working capital of $2.96 million at September 30, 2010.

Three months ended Nine months ended
September 30 September 30
Financial 2010 2009 2010 2009
----------------------------------------------------------------------------
Oil and gas sales 193,864 91,650 603,147 307,182
Funds used in
operations (1) (125,621) (169,929) (754,936) (519,258)
Per basic and diluted
share (0.00) (0.01) (0.02) (0.02)
Cash used in operating
activities (232,711) (69,198) (859,016) (481,107)
Per basic and diluted
share (0.01) (0.00) (0.03) (0.02)
Net loss (302,181) (318,717) (1,253,300) (786,330)
Per basic and diluted
share (0.01) (0.02) (0.04) (0.04)
Capital expenditures, net 1,397,076 204,838 2,032,311 1,059,570
Working capital (2) 2,964,548 1,693,815 2,964,548 1,693,815
Weighted average shares
Basic and diluted 35,504,971 20,738,887 31,004,504 21,070,755

Notes:

1. Funds used in operations is calculated as cash used in operating
activities and adding changes in non-cash working capital, if any.
Funds
used in operations per share is calculated using the basic and
diluted weighted-average number of shares for the period. Funds used
in operations and funds used in operations per share are used to
analyze Cumberland's operating performance. Funds used in operations
and funds used in operations per share do not have standardized
measures prescribed by Canadian GAAP and therefore may not be
comparable with calculations of similar measures for other companies.
2. Working capital includes cash and cash equivalents, accounts
receivable, deposits and prepaid expenses, and accounts payable and
accrued liabilities.

Three months ended Nine months ended
September 30 September 30
Operations 2010 2009 2010 2009
----------------------------------------------------------------------------
Daily production
Crude oil (bbl/d) 13 - 13 -
Natural gas (mcf/d) 329 344 313 312
Oil equivalent (boe/d @ 6:1) 68 57 65 52

Average prices
Crude oil ($/bbl) 71.71 - 72.59 -
Natural gas ($/mcf) 3.51 2.90 4.08 3.61
Oil equivalent ($/boe) 30.96 17.40 33.97 21.66

Netback
Operating netback
($/boe)(1) 10.01 1.14 11.58 6.72

Note:

1. Operating netback equals oil and gas sales less royalties, operating
expenses and transportation costs, calculated on a boe basis.
Operating netback does not have a standardized measure prescribed by
Canadian GAAP and therefore may not be comparable with the
calculation of similar measures for other companies.

Valhalla Doe Creek "M" Pool

During the third quarter, Cumberland drilled, cased and completed two
(2.0 net) light oil wells at Valhalla. These wells were completed in the
Doe Creek interval and placed on production before the end of the
quarter. Coincident with the drilling of these new producing wells, two
existing producing oil wells were re-stimulated and converted to water
injection wells.

The construction of injection and gathering facilities at Valhalla is now
complete and Cumberland commenced full scale water injection on November
15, 2010.

Reader Advisories

Forward-Looking Statements: This news release contains certain forward-
looking statements, including management's assessment of future plans and
operations, including expectations on the commencement of water injection
operations at Valhalla and the timing thereof, that involve substantial
unknown risks, uncertainties and assumptions, some of which are beyond
the Company's control. Such risks, uncertainties and assumptions include,
without limitation, those associated with oil and gas exploration,
development, exploitation, production, marketing, processing and
transportation, loss of markets, volatility of commodity prices,
imprecision of reserve estimates, environmental risks, failure to receive
the requisite regulatory approvals, competition from other producers,
inability to retain drilling rigs and other services, delays resulting
from or inability to obtain required regulatory approvals and ability to
access sufficient capital from internal and external sources, the impact
of general economic conditions globally and in Canada, industry
conditions, changes in laws and regulations (including the adoption of
new environmental laws and regulations) and changes in how they are
interpreted and enforced, the lack of availability of qualified personnel
or management, fluctuations in foreign exchange or interest rates, stock
market volatility and obtaining required approvals of regulatory
authorities. Cumberland's actual results, performance or achievements
could differ materially from those expressed in, or implied by, those
forward-looking statements and, accordingly, no assurances 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
Cumberland will derive therefrom. Readers are cautioned that the
foregoing list is not exhaustive. Additional information on these and
other factors that could affect Cumberland's operations and financial
results are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com). All subsequent forward-looking statements, whether
written or oral, attributable to Cumberland or persons acting on its
behalf are expressly qualified in their entirety by these cautionary
statements. Furthermore, the forward-looking statements contained in this
news release are made as at the date of this news release and Cumberland
does not undertake any obligation to update publicly or to revise any of
the included forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required by
applicable securities laws.

Boe's may be misleading, particularly if used in isolation. A boe
conversion 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.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Cumberland Oil & Gas Ltd.
    Alan MacDonald
    Vice President, Finance and Chief Financial Officer
    (403) 237-0790