Glamis Resources Ltd.

Glamis Resources Ltd.

April 24, 2008 09:00 ET

Drilling Success in 2007 Drives Glamis' Growth Plans in 2008

CALGARY, ALBERTA--(Marketwire - April 24, 2008) -


Glamis Resources Ltd. (TSX VENTURE:GLM.A)(TSX VENTURE:GLM.B) ("Glamis" or "the Company") is pleased to announce its financial and operational results for the three months and year ended December 31, 2007.

Glamis' highlights for 2007 are as follows:

- Discovered a significant light oil pool in Queensdale, Saskatchewan with Glamis' first 100% working interest horizontal well drilled in December 2007. Glamis has subsequently drilled two further successful horizontal wells into this structure and has drilled a subsequent exploration well targeting another new pool

- Production averaged 214 boe/d for 2007; Glamis exited the year at 335 boe/d (98% oil)

- Increased proved and probable reserve volumes by 20 percent to 739 mboe

- Invested $10.6 million in capital projects

-- Drilled 8 wells (5.45 net); 3 (2.6 net) were successful oil wells and 5 (2.85) were dry and abandoned

-- Re-entered 1 well (0.625 net) which proved to be uneconomic

-- Invested $1.7 million on land and seismic

- Significantly increased cash flow over the year to $730,000 ($0.03 per share) compared to negative cash flow of $30,000 in the prior year, as a result of increased production volumes and higher oil prices

- Maintained balance sheet strength and enhanced the Company's financial flexibility by completing a flow through share offering of $2.6 million during the second quarter of 2007 and securing a $3.5 million revolving line of credit (drawn by $1.7 million at year end)

2007 Year End Reserves Summary

This summary of Glamis' reserves evaluation as at December 31, 2007 was prepared by GLJ Petroleum Consultants Ltd. ("GLJ"), the Company's independent reserves evaluator. The National Instrument 51-01 forms F1, F2 and F3 have been filed on SEDAR and can be viewed at www. or

Gross Company Interest Reserves (as at Dec. 31/07)
(before deduction of royalties payable, not including royalties receivable)

NGL's Gas Oil Oil Eq.
Mbbl MMcf Mbbl Mboe
Proved Producing 1.1 63 491 502

Proved Developed Non-producing - - 81 81
Total Proved 1.1 63 572 583

Total Probable 0.3 16 152 155

Total Proved Plus Probable 1.4 79 724 739

Net Present Value of Reserves

Below is a table showing the Company's net present value of future net revenue attributable to reserves using forecast prices and costs. The prices used were GLJ Forecast Prices as at January 1, 2008. The estimated future net revenues are presented before deducting future estimated site restoration costs, and are reduced for estimated future abandonment costs and future capital costs associated with non-producing, undeveloped and probable additional reserves. Estimated values disclosed do not necessarily represent fair market value.

Summary of Future Net Revenue Before Income Taxes $(000's)

Discounted at: 0% 5% 10%
Total Proved 17,841 15,477 13,708

Total Probable 5,008 3,553 2,663

Total Proved Plus Probable 22,849 19,030 16,371


Glamis has filed on SEDAR its audited financial statements and related Management Discussion and Analysis ("MD & A") for the three and twelve month period ended December 31, 2007. Selected financial and operational information is outlined below and should be read in conjunction with Glamis' audited financial statements and related MD & A which are available for review at or

Year Year
Ended Ended
($000s except per unit amounts) Dec 31 Dec 31 %
2007 2006(1) Change

Petroleum & natural gas revenue 4,307 1,198 260
Funds flow from operations 730 (30) n/a
Per share (basic) 0.03 (0.00) n/a
Net loss (2,729) (408) 569
Per share (basic) (0.12) (0.03) 300
Capital expenditures, net 10,583 6,162 72
Working capital (deficit) (2,525) 5,071 n/a
Weighted common shares o/s basic(2) 23,330 15,025 55

Crude oil & NGLs (bbls/d) 200 172 16
Natural gas (mcf/d) 84 12 600
Total (boe/d) 214 174 23

Crude oil & NGLs ($/bbl) 55.72 47.92 15
Natural gas ($/mcf) 7.14 5.98 20
Average ($/boe) 55.04 47.81 14

Netbacks ($/boe)
Petroleum & natural gas revenue 55.04 47.81 15
Processing Revenue 0.33 0.59 (44)
Royalties (4.33) (2.31) 87
Operating costs (23.45) (29.44) (21)
Field netback 27.59 16.65 66

(1) For comparative purpose, Glamis did not have any oil and gas operations
prior to August 11th 2006.

(2) 2007 per share amounts have been calculated on the weighted average
number of shares outstanding after giving effect to the potential
conversion of Class B Shares into Class A Shares at 10:1 based on the
Dec. 31, 2007 closing price of Class A Shares of $0.86.

Subsequent to December 31, 2007, Glamis:

- During the first quarter of 2008 Glamis drilled two additional horizontal wells in Queensdale. One well is now producing while the second well is planned for completion as soon as road bans are lifted in the area. Glamis believes this core area has the potential for up to 12 (10.5 net) horizontal development wells. Also in Queensdale, Glamis has drilled a 100% working interest exploratory well targeting another 3D seismically defined feature. Glamis was encouraged by the initial results and kicked the well off to open up a 400m open hole horizontal section. The well will be placed on production as soon as road bans are lifted in the area. Subject to well performance, follow-up locations are expected to be drilled within the next 12 months.

- In March 2008 Glamis completed an additional $6.0 million private placement; 3.5 million Class A shares at $1.15 per share and 1.4 million flow through Class A shares at $1.40 per share; proceeds to be used towards Glamis' 2008 drilling program.


With the success at Queensdale, Glamis expects to significantly increase production and reserves in 2008. With these anticipated volume increases, Glamis' operating and general and administrative costs are also expected to decline on a per unit basis, significantly improving the Company's cash flow netbacks.

In addition to the Company's active drilling program, Glamis will continue to seek out further opportunities that align with the Company's long-term growth strategy of pursuing opportunities that allow for all-season access, reservoirs that provide long-life reserves and prospects that enhance shareholder value.

Glamis Resources Ltd. is a junior oil and gas company formed to generate and develop its own prospects, acquire oil and gas properties and participate with joint venture partners in oil and gas exploration and development in the Western Canadian Sedimentary Basin. The company's Class A Shares and Class B Shares trade on the TSX Venture exchange under the symbols GLM.A and GLM.B. The company currently has 19,696,655 Class A shares and 922,500 Class B shares outstanding.

FORWARD LOOKING STATEMENTS: Certain information regarding Glamis in this news release including management's assessment of future plans and operations, timing of drilling and tie-in of wells, productive capacity of the new wells and productive capacity from different wells, expected production rates, drilling success rates, dates of commencement of production, may constitute forward looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Glamis' operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and Glamis 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.

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

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