Duvernay Oil Corp.
TSX : DDV

Duvernay Oil Corp.

August 09, 2007 16:36 ET

Duvernay Oil Corp.: Impressive Recent Drilling Results Will Drive Strong Second Half Growth

CALGARY, ALBERTA--(Marketwire - Aug. 9, 2007) - Duvernay Oil Corp. (TSX:DDV)

HIGHLIGHTS

- Year over year production growth of 34% already achieved in first half, full year growth of 45-50% anticipated.

- 2007 Capital program reduced to $415 million from $450 million.

- Top decile net-back of $34.30/boe driven by top decile cost structure.

- Strong drilling results from post spring break-up program with seven new gas wells each with initial deliverabilities in excess of 5.0 mmcfpd.

- New Pool Doig gas discovery at Saturn B.C. and new pool oil discovery at Puskwa Alberta.

- Improved capital efficiencies resulting from reduced service costs and higher percentage of capital program dedicated to drilling.

- Continued strong quarterly Corporate Cash Flow of $59.8 million.

- Improved Balance Sheet with net debt reduced by $40.9 million during the second quarter.

CAPITAL PROGRAM AND FINANCIAL OUTLOOK

Duvernay has reduced the 2007 full year capital budget from $450.0 million to $415.0 million in light of weaker than anticipated natural gas prices. These program reductions will only modestly impact both 2007 exit and average production volumes, given the strong post-breakup drilling and completion results. First half 2007 capital expenditures were $221.4 million. Year over year, the 2007 first half EP capital program is 18% lower than 2006 while maintaining the same overall level of drilling and completion activity. The 2007 program is directed almost entirely at drilling, completions and tie-ins, yielding steadily improving capital efficiencies. First half 2007 land expenditures were $2.9 million, compared to $35.0 million in 2006 as the undeveloped land inventory in the two large gas complexes is being expanded primarily through farm-ins rather than Crown land sales. First half 2007 facility expenditures were $18.3 million, compared to $35.5 million in 2006.

The Company has been operating an 11 rig drilling program since early June, in part to take advantage of improving service costs. Both drilling rig day rates and stimulation costs have declined significantly compared to second half 2006 levels; these reduced costs will further improve 2007 capital efficiencies. The Company will reduce the drilling rig fleet to approximately 8 rigs in late August. Duvernay has reduced its full year cash flow outlook to $255 million due to both the revised full year production average and a reduced natural gas price forecast. The Company will continue to monitor natural gas price levels and will revisit overall activity levels and the remaining 2007 and 2008 capital programs in the fourth quarter.

PRODUCTION OUTLOOK

Second quarter production was 20,912 boepd, 34% higher than second quarter of 2006. Second quarter production was reduced by weather related tie-in and facility start-up delays as well as unscheduled down-time. The Marsh-Pedley pipeline system, originally scheduled for a late March start-up, commenced production in early July. Current production in the system is 7.0 mmcfpd (1,167 boepd) with several wells currently being tested and/or tied-in. The Brassey plant expansion, originally scheduled for a mid-April start-up, commenced production during the third week of July. Overall, only one new well was tied in during May and June by the Company. Unscheduled production down-time in the second half of May and June at Groundbirch, Sundance, Dawson and Oldman further reduced second quarter production volumes by approximately 900 boepd.

Thus far in the third quarter, a total of 20 wells have been tied-in, adding approximately 3600 boepd of new net production. This pace of new gas well tie-ins and production growth is expected to continue through the balance of the year as development well results since the post break-up program commenced, have significantly exceeded per well average deliverability expectations. Third and fourth quarter over quarter production growth is anticipated to be at the higher end of the Company's targeted range. Duvernay expects to reach the 25,000 boepd level in October and exit 2007 in the 28,000 - 29,500 boepd range. Given the second quarter production delays, and the modest capital budget reduction, full year 2007 average production is now expected to be approximately 23,200 boepd. Despite the aforementioned capital program reductions, the Company still expects full year over year production growth in the 45-50% range.

EP PROGRAM UPDATE

During the first half, Duvernay drilled 46 wells with a 100% success rate. The Company is currently operating eleven drilling rigs and twelve service rigs, and will reduce to approximately eight drilling and nine service rigs during the next few weeks. The combination of Duvernay's very low cost structure and significantly higher than Basin average per well reserve recovery and well productivity results in profitable wells for the company at gas prices in the $2.50-$3.00/mcf Cdn range.

As disclosed previously, Duvernay plans several large volume deep Exploration wildcats throughout its operated areas. Approximately five Paleozoic gas prospects will be tested, each with volume potential in excess of 200 bcf. A significant light oil exploration program is also planned for the Puskwa-Dawson trend. Two exploration wells are currently either drilling or testing; a large deep gas prospect at Groundbirch, BC and a light oil prospect at Puskwa, AB.

Duvernay estimates that it has added approximately 15.0 mmboe to proved producing reserves thus far in 2007, a 47% increase over year-end 2006 totals. The EP program also continues to add significant incremental new reserves in both core operated areas. This strong reserve performance will provide the Company with additional financial flexibility.

SUNSET-GROUNDBIRCH COMPLEX

Duvernay is currently operating five drilling rigs in the Sunset-Groundbirch complex of NE BC.

Large second half 2007 drilling programs are planned at Sundown, Brassey and at Sunset. The six 2006 new pool Doig discoveries, and an additional new 2007 Doig discovery at Saturn, will be delineated during the second half, in part utilizing the 100 square km Sunset 3-D acquired during the first quarter. Significant large winter drilling programs are planned at Worth and West Groundbirch, including earning wells on the large new 121 section farm-in package negotiated during the first half of 2007.

At least two horizontal wells, targeting oil in the Sunset Unit, will be drilled in the second half, following up on the successful 15-21 horizontal oil well drilled earlier in the year. The initial deep exploration well in the complex, targeting multiple Paleozoic gas targets, is currently drilling at Groundbirch; the well is expected to reach total depth in approximately 45 days. The Company plans to test a second, separate, 200 bcf prospect at Sunset.

The Brassey plant expansion, originally scheduled for an April 2007 start-up, was delayed by wet conditions until early July. The expansion is now on-stream and will add approximately 10.0 mmcfpd to BC production levels as wells are tied-in to the plant during the third quarter.

ALBERTA DEEP BASIN COMPLEX

A total of 31 new wells have been drilled to date in 2007 in the Deep Basin, with a total of 75 wells planned for the full year.

Application of the continuously improving multi-zone completion technology, coupled with subsequent production commingling, continues to yield very strong gas wells. Seven wells with initial commingled production rates well in excess of 5.0 mmcfpd were drilled and tested at Fir, Wild River, Oldman, Pedley and Sundance in the June-August time frame following break-up.

The 10 mmcfpd Marsh-Pedley pipeline system, originally planned for a March 2007 start-up, commenced production in early July and is expected to be full by the end of the third quarter.

Duvernay is planning to upgrade the existing Sundance compressor site to a full sweet gas plant with a fourth quarter 2007 on-stream target. This will allow for further Deep Basin operating cost reductions and improved on-stream times as the Company has been experiencing third party cut-backs throughout 2007 in the Sundance area.

Duvernay continues to expand the land and drilling inventory in the Deep Basin complex with approximately 50 sections of new lands added, primarily through farm-in deals, thus far in 2007. The Company is capitalizing on these new, previously unavailable opportunities in the Deep Basin during this period of low natural gas prices and general Industry activity slow down.

DAWSON-PUSKWA ALBERTA

The Company has made a new pool Devonian light oil discovery at Puskwa Alberta during the past week. The well produced clean oil upon perforation, final rates will be ascertained once the completion program is finished. The discovery well tested a large, geophysically imaged trap several sections in size, further drilling will be required to define the extent of the accumulation. Duvernay has approximately 50 sections of land in the greater Puskwa area.

MANAGEMENT'S DISCUSSION AND ANALYSIS

Certain information set forth in this management's discussion and analysis contains forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Duvernay's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned 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. Duvernay'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 Duvernay will derive therefrom. Duvernay disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as expressly required by applicable securities laws.

Funds from operations and operating netback are not recognized measures under GAAP. Management believes that in addition to net income, funds from operations and operating netback are useful supplemental measures as they demonstrate the Corporation's ability to generate the cash necessary to repay debt or fund future growth through capital investment. Investors are cautioned, however, that these measures should not be construed as an alternative to net income determined in accordance with GAAP as an indication of Duvernay's performance. Duvernay's method of calculating these measures may differ from other companies and accordingly, they may not be comparable to measures used by other companies. Duvernay defines funds from operations as cash from operations before changes in non-cash operating working capital and abandonment costs incurred. The following table shows the reconciliation of funds from operations to operating cash flow as defined by GAAP:



Three Months Ended Six Months Ended
June 30 June 30
---------------------------------------
($/diluted share) 2007 2006 2007 2006
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Funds from operations per equity
share, as disclosed $ 1.05 $ 0.72 $ 2.21 $ 1.53
Changes in non-cash working capital 0.09 0.06 0.18 0.13
Abandonment costs incurred - - - -
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Operating Cash Flow, per
Cash flow Statement $ 1.14 $ 0.78 $ 2.39 $ 1.66
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Operating netback is calculated on a $/BOE basis and is defined as revenue
less royalties, transportation costs and operating expenses, as shown below:


Three Months Ended Six Months Ended
June 30 June 30
---------------------------------------
($/BOE) 2007 2006 2007 2006
---------------------------------------------------------------------------
Revenue, excluding unrealized gains
and losses on financial instruments
and processing fee income $ 48.93 $ 43.21 $ 50.44 $ 49.28
Royalties (7.31) (7.18) (8.22) (9.66)
Transportation costs (1.47) (1.03) (1.38) (1.08)
Operating Expenses (5.85) (5.72) (5.71) (5.52)
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Operating Netback $ 34.30 $ 29.28 $ 35.13 $ 33.02
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Per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). Barrel of oil equivalents (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6mcf:1bbl of oil is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

This management's discussion and analysis should be read in conjunction with Duvernay's unaudited interim financial statements for the six months ended June 30, 2007 and audited financial statements and notes for the year ended December 31, 2006 and comparative information included therein.

This management's discussion and analysis is dated August 9, 2007.

Additional information about Duvernay Oil Corp. may be found in documents filed on SEDAR at www.sedar.com and which are also available on Duvernay's website www.duvernayoil.com.

Quarter ending June 30, 2007 compared to the Quarter ending June 30, 2006

PRODUCTION

The Corporation's production growth for the three months ended June 30, 2007 continued, averaging 20,912 boe/d compared with 15,554 boe/d for the same period in 2006, an increase of 34%. Average production remained constant compared to the first quarter of 2007. Wet conditions in the second quarter resulted in minimal new well tie in activity. The Corporation did not participate in any property or corporate acquisitions or dispositions during the first half of the year. The Corporation's average production rate for the second quarter of 2007 of 20,912 boe/d was below overall production capability.

Significant weather related tie-in delays were encountered in the Marsh Pedley pipeline system originally scheduled for an on stream date of March 2007, commencing production in July with current production rates of 7 mmcf/day. Similarly the Northeast B.C. Brassey 10 mmcf/day plant expansion was delayed from April until late July. Unscheduled downtime at Groundbirch, Sundance and Oldman further reduced second quarter production volumes by 800 boe/d.



Three Months Ended June 30 Six Months Ended June 30
---------------------------------------------------------
2007 2006 Change 2007 2006 Change
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Natural gas
(mcf/d) 109,127 85,968 27% 110,450 78,248 41%
Crude oil and
liquids (bbls/d) 2,724 1,226 122% 2,489 1,412 76%
Oil equivalent
- boe 1,902,961 1,415,401 34% 3,782,493 2,615,960 45%
Oil equivalent
- boe/d 20,912 15,554 34% 20,898 14,453 45%
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Area (boe/d) Second Quarter First Quarter Second Quarter
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2007 2007 2006
---------------------------------------------------------------------------
Northeast B.C. 6,315 6,314 4,816
Deep Basin 13,995 13,917 9,434
Other Areas 602 653 1,304
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20,912 20,884 15,554
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New production during the second quarter was sourced from the Deep Basin where 9 new wells were tied-in along with 4 new Northeast B.C. wells also being tied in during the quarter. These production additions offset natural declines and shut ins experienced in the second quarter. For the six months ending June 30, 2007 corporate production volumes increased by 45% over the comparable period in 2006. The primary driver for this growth is the development drilling in the Company's two large tight gas projects in the Deep Basin and Northeast B.C. Light oil volumes also improved substantially as the 2006 Dawson light oil discovery produced consistently during the first half of 2007. Deep Basin production for the quarter averaged 13,995 boe/d for an increase of 48% compared to the second quarter of 2006. In a like manner Groundbirch/Sunset production improved to 6,315 boe/d or an increase of 31% from the same quarter in 2006.

REVENUE AND ROYALTIES

Revenue for the three months ended June 30, 2007 was $98.8 million representing a 59% increase over revenue of $62.3 million for the same period in 2006. Similarly for the first six months of 2007 revenues grew by 46% primarily as a result of strong production growth. Revenue includes all petroleum and natural gas sales, processing fee income and has been adjusted for the effects of commodity hedging (realized gains and losses). Realized oil and liquids prices for the second quarter of 2007 averaged $62.11 per barrel compared with $75.49 per barrel for the same period in 2006 (including realized hedging losses of $0.71 per barrel). There were no realized hedging gains or losses on the sale of oil or liquids in the second quarter of 2007. When comparing Duvernay's second quarter 2007 oil and liquids price to the second quarter 2006, realized prices decreased 18%. World oil price benchmarks decreased by $5.70 U.S. in the second quarter of 2007 when compared to the same time period in 2006, or 8%.

Duvernay's realized corporate gas price for the second quarter of 2007 continued to outperform the AECO spot price ($7.54 - net of transportation and realized hedging gains/losses versus $7.09). AECO natural gas prices increased by 18% in the second quarter of 2007 compared to the second quarter of 2006. Duvernay's realized natural gas price increased by 15% when comparing these quarters. Transportation costs for the second quarter of 2007 were 2.9% of gross revenue or $1.47/boe, compared to 2.4% of gross revenue or $1.03/boe in the second quarter of 2006. Third party processing income of $1.3 million decreased slightly compared to the first quarter of 2007 primarily due to a ramp up of Duvernay equity gas replacing third party gas in company owned facilities. Approximately 25 mmcf/d of third party natural gas continues to be processed through the 120 mmcf/d Cecilia 15-4 gas plant.



DUVERNAY PRICES

Three Months Ended June 30
-----------------------------
2007 2006 Change
---------------------------------------------------------------------------
Natural gas ($/mcf) $ 7.54 $ 6.55 15%
Crude oil and liquids ($/bbl) $ 62.11 $ 75.49 (18)%
Oil equivalent ($/boe) $ 47.46 $ 42.18 13%
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BENCHMARK OIL & GAS PRICES

Three Months Ended June 30
-----------------------------
2007 2006 Change
---------------------------------------------------------------------------
Natural Gas
NYMEX Henry Hub U.S. $ 7.66 $ 6.65 15%
AECO $ 7.09 $ 6.02 18%
Oil
NYMEX U.S. $ 65.02 $ 70.72 (8)%
Edmonton Par Cdn. $ 73.73 $ 80.64 (9)%
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RECONCILIATION OF AECO INDEX TO DUVERNAY'S REALIZED NATURAL GAS PRICES

Three Months Ended June 30
---------------------------------------------------------------------------
($/boe) 2007 2006
---------------------------------------------------------------------------
AECO Index Price $ 7.09 $ 6.02
Transportation (0.14) (0.15)
Heat/Quality Differential 0.32 0.15
Hedge 0.27 0.53
Duvernay realized natural gas price $ 7.54 $ 6.55
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CURRENCY - EXCHANGE RATES

Three Months Ended June 30
-----------------------------
2007 2006 Change
---------------------------------------------------------------------------
Cdn/U.S. $ $ 0.9104 $ 0.8907 2%
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Revenue is analyzed as follows:

Three Months Ended Six Months Ended
June 30 June 30
----------------------------------------------------------
Revenue 2007 2006 Change 2007 2006 Change
---------------------------------------------------------------------------
Natural gas $ 80,666 $ 52,419 54% $ 156,003 $ 111,322 40%
Oil and liquids
revenue 16,845 8,739 93% 31,880 17,596 81%
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Total Revenue
from oil and
gas sales $ 97,511 $ 61,158 59% $ 187,883 $ 128,918 46%
Processing and
Other Income 1,287 1,171 10% 3,058 2,071 48%
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Total Revenue $ 98,798 $ 62,329 59% $ 190,941 $ 130,989 46%
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Duvernay's royalties are summarized as follows:

Three Months Ended Six Months Ended
June 30 June 30
----------------------------------------------------------
Royalties 2007 2006 Change 2007 2006 Change
---------------------------------------------------------------------------
Natural gas $ 10,109 $ 8,618 17% $ 24,540 $ 21,525 14%
Oil and liquids 3,809 1,528 149% 6,545 4,250 54%
ARTC - - - - (500) (100)%
---------------------------------------------------------------------------
Total royalties $ 13,918 $ 10,146 37% $ 31,085 $ 25,275 23%
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For the three months ended June 30, 2007, the average effective royalty rate was 14%, compared to 17% for the same period in 2006. Duvernay also continued to benefit from the royalty relief programs put into place by the Ministry of Energy and Mines for British Columbia in May 2003, allowing explorers to access reduced royalty rates for low-productivity natural gas wells, royalty credits for deep gas wells and royalty credits for wells drilled in the summer months. Oil and liquids royalties as a percent of total revenue increased from the same period in 2006 (23% in 2007 vs 17% in 2006) due to the timing of the application of royalty holidays for liquids derived from some deep gas wells.

For the first six months of 2007 royalties grew by 23% when compared to 2006, lagging revenue growth primarily due to the timing for acknowledging various royalty holidays.

OPERATING EXPENSES

Operating expenses include all periodic lease and field level expenses and include no income recoveries for processing third party volumes. Operating expenses of $5.85/boe for the second quarter of 2007 were relatively consistent with the second quarter 2006 operating expenses of $5.72/boe. Total operating expenses for the quarter were $11.1 million compared to $8.1 million in the second quarter of 2006. The Corporation's second quarter operating expenses include third party processing, gathering and compression fees of $3.7 million or 33% of total operating costs.

GENERAL & ADMINISTRATIVE EXPENSES

General and administrative expenses ("G&A") are summarized on the table below as follows:



Three Months Ended Six Months Ended
June 30 June 30
----------------------------------------------------------
2007 2006 Change 2007 2006 Change
---------------------------------------------------------------------------
G&A expenses $ 4,069 $ 3,304 23% $ 7,726 $ 6,420 20%
Administrative and
operating recovery (476) (350) 36% (868) (700) 24%
Capital recovery (1,204) (1,186) 2% (2,559) (3,201) (20)%
Capitalized G&A (830) (583) 42% (1,494) (818) 83%
Stock based
compensation 4,107 2,080 97% 7,484 4,639 61%
Capitalized
stock based
compensation (1,781) (728) 145% (3,246) (2,012) 61%
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Total G&A $ 3,885 $ 2,537 53% $ 7,043 $ 4,328 63%
Oil equivalent
($/boe) $ 2.04 $ 1.79 14% $ 1.86 $ 1.66 12%
Oil equivalent
cash costs
($/boe) $ 0.82 $ 0.84 (2)% $ 0.74 $ 0.65 14%
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Net G&A expenses for the three months ending June 30, 2007 increased to $3.9 million from $2.5 million for the same period in 2006. G&A for the second quarter of 2007 increased to $2.04/boe from $1.79/boe in 2006 due mainly to the increase in stock based compensation expense. Stock based compensation expense increased over the same period of 2006 due to a new issue of stock options during the quarter, as well as a large stock option issue that occurred late in 2006. When stock based compensation of $1.22/boe is removed, the Corporation's cash general and administrative costs decreased slightly to $0.82/boe from $0.84/boe for the same period in 2006. The percentage of expenses capitalized as attributable to exploration activities was 35%, consistent with the second quarter of 2006. Cash G&A per BOE increased by 14% to $0.74/boe as capital recoveries dropped as a result of lower capital spending year to date 2007 compared to 2006.

DEPLETION, DEPRECIATION AND ACCRETION

Depletion, depreciation and accretion expense ("DD&A") increased to $38.5 million during the second quarter of 2007 from $25.3 million during the same period in 2006. On a dollars per boe basis, DD&A increased to $20.12 from $17.87 in the second quarter of 2006. The percentage of the property, plant and equipment investment excluded from the Corporation's costs subject to depletion (5% in 2007; 9% in 2006) decreased when comparing the second quarter of 2007 with 2006. Depletion rates in 2007 increased primarily as a result of inordinately large 2006 capital expenditures in undeveloped land now being recognized in the depletable base. The second quarter of 2007 depletion rate of $20.12/boe has decreased slightly from the $20.58/boe recorded in the first quarter of 2007 as previously significant probable reserves were added to the proved category and future development costs previously included in the depletion base were invested.

INCOME TAXES

The Corporation did not pay any cash income taxes in the second quarter of 2007. The Corporation does not expect to pay any cash income taxes in 2007 based on existing tax pools, planned capital expenditures and the most recent forecast of 2007 taxable income. Although current income tax horizons depend on product prices, production levels, and the nature, magnitude and timing of capital spending, the Corporation currently believes that no cash income tax will be payable for two to three years.

FUNDS FROM OPERATIONS AND EARNINGS

Funds from operations increased to $59.8 million ($1.05 per diluted equity share) for the three months ending June 30 from $39.0 million ($0.72 per diluted equity share) for the comparable period in 2006. On a per share basis, funds from operations increased by 46% due to stronger operating results partially offset by weaker gas prices. After tax earnings decreased by 14% for the second quarter of 2007 when compared to the same period in 2006 to $18.6 million from $21.7 million. The lower after tax net income realized in the second quarter of 2007 is mainly due to a decrease in the statutory income tax rates recognized as a favourable one time adjustment in the second quarter of 2006 . On a per share basis, diluted earnings decreased to $0.33 from $0.40, an 18% decrease. On a pretax basis, second quarter 2007 earnings of $23.3 million were up from the same quarter in 2006 ($12 million). The increase in before tax net income over the prior quarter is due to a combination of increased revenues and product prices as well as unrealized hedging gains and marketing efficiencies.



Three Months Ended Six Months Ended
June 30 June 30
----------------------------------------------------------
2007 2006 Change 2007 2006 Change
---------------------------------------------------------------------------
Funds from
operations per
equity share(1) $ 1.05 $ 0.72 46% $ 2.21 $ 1.53 44%
Earnings per
equity share(1) $ 0.33 $ 0.40 (18)% $ 0.53 $ 0.63 (16)%
Operating netback
per boe $ 34.30 $ 29.28 17% $ 35.13 $ 33.02 6%
note: (1) diluted


LIQUIDITY AND CAPITAL RESOURCES

The Corporation invested $84.0 million in the second quarter of 2007 compared to $96.0 million in the second quarter of 2006, as set out in the following table.



Three Months Ended
------------------------------------
($ thousands) June 2007 June 2006 March 2007
---------------------------------------------------------------------------
Land and seismic $ 1,999 $ 21,417 $ 5,209
Drilling and completions 55,926 57,312 106,952
Facilities and pipelines 24,819 28,724 23,837
Property Acquisition/(Disposition) 348 (12,169) 732
Other 882 683 735
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Cash investments in Capital Resources 83,974 95,967 137,465
Non-Cash additions to PP&E 2,111 2,743 2,298
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Total $ 86,085 $ 98,710 $ 139,763
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The Corporation drilled 13 gross wells (11.7 net) of which 7 are Deep Basin, 4 are Sunset/Groundbirch and 2 are in other areas. Ten gross wells were completed during the second quarter, 13 wells were tied in and significant facilities expenditures were made at Brassey, Sundance and Obed.

For the six months ending June 30, 2007 Duvernay invested $221.4 million, down by 13% from the same period in 2006, reflecting a longer 2007 spring break up which modestly reduced activity levels.

The Corporation completed an equity financing issuing 1,500,000 common shares at $40.35 per share for gross proceeds of $60.525 million. The proceeds of the financing are dedicated to previously planned exploration and development drilling projects.

During the first quarter the Corporation completed an equity financing issuing 1,000,000 common shares on a flow-through basis at $41.50 per share for gross proceeds of $41.50 million. The Company also entered into a new syndicated bank facility with a group of Canadian banks during the first quarter. The new facility has borrowing capacity of $440 million, up from $375 million. In addition the Corporation has a $25 million operating line. The new facility has been established on terms similar to those previously in place.

At June 30, 2007 the Corporation estimates that it has fully spent the $48.125 million of the October 2006 flow-through offering and has a $26.1 million remaining of the obligation for the February 2007 flow-through offering, which must be completed by December 31, 2008.

As at June 30, 2007, the Corporation had 57,356,774 shares outstanding and 5,569,818 stock options outstanding. As at August 9, 2007, the Corporation has 57,356,774 shares outstanding and 5,584,818 stock options outstanding. During the period from June 30, 2007 until August 9, 2007, no common shares were issued on the conversion of employee stock options, and 15,000 new stock options were issued.

COMMODITY PRICE RISK MANAGEMENT/DERIVATIVE CONTRACTS

The Corporation enters into commodity-based derivative financial instruments such as forwards, futures, swaps, and costless collars to serve two primary business objectives. The first objective is to reduce the variability in cash flows from fluctuations in product prices to ensure a source of funding for the 2007 and 2008 capital program. The second objective is to fix the rate of return on capital invested in the gas prone resource projects. The Board of Directors has approved a policy permitting management to hedge up to a fixed percentage of budgeted corporate annual production. See below for a discussion of changes to the accounting for Financial Instruments effective January 1, 2007, and the related impact on the opening balance sheet for this quarter. Gains or losses resulting from changes in the fair value of derivative contracts are recognized in earnings and cash flows when those changes occur. None of the Corporations derivative commodity contracts qualify for hedge accounting.

Duvernay enters into most hedging transactions with the same party that the commodity is physically sold to, avoiding the need to provide credit in the event that the hedges are at prices below prevailing prices. The most significant risk with the commodity hedges is that the prevailing product prices are higher than those committed to in the hedging contract. The Corporation partially mitigates this risk by including collars in its hedging portfolio. A less significant risk relates to the Corporation's ability to supply the production at future dates. This risk is managed by entering into the hedging contracts at multiple delivery points.

At June 30, 2007 Duvernay has calculated the market value of those contracts that were unsettled at June 30 and has estimated net gain from settling these instruments to be approximately $6.7 million. Financial Statement note 1 "Significant Accounting Policies" and note 5 "Financial Instruments" provide further details.

COMMITMENTS AND CONTRACTUAL OBLIGATIONS

During the second quarter of 2007 Duvernay made a commitment to process 10 mmcf/d of natural gas through third party facilities commencing in 2008 for 3 years, at competitive terms.

Other than as described above and with respect to flow-through share obligations and long-term debt commitments, there have been no other significant changes in the Company's commitments or contractual obligations from those disclosed in the December 31, 2006 Annual Management's Discussion and Analysis.

CHANGES IN DISCLOSURE CONTROLS AND PROCEDURES/INTERNAL CONTROLS OVER FINANCIAL REPORTING

There have been no material changes in the Company's disclosure controls and procedures, nor were there changes in the internal controls over financial reporting during the quarter ending June 30, 2007 from the previously reported period.

IMPACT OF NEW ENVIRONMENTAL REGULATIONS

Environmental legislation, including the Kyoto Accord, the federal government's "EcoACTION" plan and Alberta's Bill 3 - Climate Change and Emissions Management Amendment Act, is evolving in a manner expected to result in stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs.

Given the evolving nature of the debate related to climate change and the resulting requirements, it is not possible to determine the operational or financial impact of those requirements on Duvernay.

CHANGES IN ACCOUNTING POLICIES

FINANCIAL INSTRUMENTS/OTHER COMPREHENSIVEINCOME/HEDGES

In 2005, the CICA approved Handbook section 3855 "Financial Instruments - Recognition and Measurement, "section 1530 "Comprehensive Income" and section 3865"Hedges". Effective January 1, 2007, these standards require the presentation of financial instruments at fair value on the balance sheet.

Under adoption of these standards, cash and cash equivalents are designated as held-for-trading and are measured at carrying value, which approximates fair value due to the short-term nature of these instruments. Accounts receivable and accrued revenues are designated as loans and receivables. Accounts payable and accrued liabilities and long-term debt are designated as other liabilities. Risk management assets and liabilities are derivative financial instruments classified as held-for-trading, see further discussion in note 1(b) of the financial statements.

These standards must be applied prospectively with an initial recognition adjustment to retained earnings and accumulated other comprehensive income. Upon implementation and initial measurement under the new standards at January 1, 2007, the following adjustments were recorded to the balance sheet:



Increase (decrease) At January 1, 2007
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Fair value of financial instruments $ 9,600
Future income tax liability (3,124)
Retained earnings 6,476
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Select Quarterly Information

2007 2006
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Q2 Q1 Q4 Q3
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PRODUCTION
Crude oil and
liquids (bbls) 247,865 202,719 196,225 170,051
Gas (mcf) 9,930,573 10,060,881 8,885,624 7,836,912
Oil equivalent (boe) 1,902,961 1,879,533 1,677,162 1,476,203
Crude oil and
liquids (bbls/d) 2,724 2,252 2,133 1,848
Gas (mcf/d) 109,127 111,788 96,583 85,184
Oil equivalent (boe/d) 20,912 20,884 18,230 16,046
---------------------------------------------------------------------------
FINANCIAL
($ thousands, unless noted)
Revenue, net of royalties 84,880 74,976 72,472 60,355
Funds from operations 59,757 63,696 55,845 46,081
Per share basic 1.06 1.16 1.05 0.88
Net earnings 18,643 10,688 12,242 12,309
Per share basic 0.33 0.19 0.23 0.24
Per share diluted 0.33 0.19 0.23 0.23
Total assets 1,408,797 1,376,671 1,272,571 1,173,784
Bank debt 399,452 374,585 324,590 296,703
Cash and working
capital (deficiency) (7,213) (72,948) (93,537) (87,959)
Basic outstanding Shares 57,357 55,608 53,962 52,605
---------------------------------------------------------------------------
PER UNIT
Gas, net of
transportation ($/mcf) 7.54 8.05 7.25 6.62
Crude oil and liquids, net
of transportation ($/bbl) 62.11 62.00 56.17 73.07
Revenue, net of
transportation ($/boe) 47.46 49.79 45.00 43.58
Operating netback ($/boe) 34.30 35.97(i) 34.92 32.42
---------------------------------------------------------------------------
---------------------------------------------------------------------------


2006 2005
---------------------------------------------------------------------------
Q2 Q1 Q4 Q3
---------------------------------------------------------------------------
PRODUCTION
Crude oil and
liquids (bbls) 111,557 143,926 262,755 197,497
Gas (mcf) 7,823,061 6,339,802 5,931,351 4,452,299
Oil equivalent (boe) 1,415,401 1,200,560 1,251,314 939,547
Crude oil and
liquids (bbls/d) 1,226 1,599 2,856 2,147
Gas (mcf/d) 85,968 70,442 64,471 48,395
Oil equivalent (boe/d) 15,554 13,340 13,601 10,212
---------------------------------------------------------------------------
FINANCIAL
($ thousands, unless noted)
Revenue, net of royalties 52,183 53,531 65,472 43,942
Funds from operations 39,009 43,244 53,828 35,758
Per share basic 0.75 0.86 1.10 0.75
Net earnings 21,677 12,133 18,287 15,532
Per share basic 0.42 0.24 0.37 0.32
Per share diluted 0.40 0.23 0.35 0.31
Total assets 1,022,445 971,616 827,263 672,868
Bank debt 271,692 221,760 175,481 141,792
Cash and working
capital (deficiency) (6,154) (53,148) (40,180) (28,005)
Basic outstanding Shares 52,307 51,205 49,345 47,856
---------------------------------------------------------------------------
PER UNIT
Gas, net of
transportation ($/mcf) 6.55 9.12 10.72 8.84
Crude oil and liquids, net
of transportation ($/bbl) 75.49 59.61 59.86 59.85
Revenue, net of
transportation ($/boe) 42.18 55.31 63.40 54.47
Operating netback ($/boe) 29.28 37.42 44.90 39.24
---------------------------------------------------------------------------


Duvernay's quarterly growth in production volumes, gross revenue and per share funds from operations is primarily attributed to an active and successful exploration and development drilling program.

(i)restated to include realized hedging gains



BALANCE SHEET

(Unaudited) (Thousands of dollars) June 30, 2007 December 31, 2006
---------------------------------------------------------------------------
ASSETS (restated)
Current assets:
Accounts receivable $ 43,180 $ 62,446
Prepaid expenses and deposits 1,148 1,230
Fair value of financial
instruments (note 5) 6,696 -
---------------------------------------------------------------------------
51,024 63,676
Investment 15,000 15,000
Property, plant and equipment (note 2) 1,342,773 1,193,895
---------------------------------------------------------------------------
$ 1,408,797 $ 1,272,571
---------------------------------------------------------------------------

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and accrued liabilities $ 58,237 $ 157,213
---------------------------------------------------------------------------
58,237 157,213

Long-term debt (note 3) 399,452 324,590
Asset retirement obligations 13,337 11,686
Future income taxes (note 6) 138,532 95,799

Shareholders' equity:
Share capital (note 4) 607,580 531,651
Contributed surplus (note 4) 16,543 12,323
Retained earnings, restated 175,116 139,309
---------------------------------------------------------------------------
799,239 683,283
---------------------------------------------------------------------------
$ 1,408,797 $ 1,272,571
---------------------------------------------------------------------------
---------------------------------------------------------------------------

See accompanying notes to interim financial statements



INTERIM STATEMENTS OF EARNINGS, COMPREHENSIVE INCOME AND RETAINED EARNINGS

Three Months Ended Six Months Ended
June 30 June 30
-----------------------------------------
(Unaudited) (Thousands
of dollars except
per share amounts) 2007 2006 2007 2006
---------------------------------------------------------------------------
Revenue:
Petroleum and natural
gas sales $ 90,370 61,158 $ 182,215 128,918
Realized gain on
financial instruments 2,736 - 8,572 -
Unrealized gain (loss) on
financial instruments (note 5) 4,405 - (2,904) -
---------------------------------------------------------------------------
97,511 61,158 187,883 128,918
Royalties (13,918) (10,146) (31,085) (25,275)
Processing and other income 1,287 1,171 3,058 2,071
---------------------------------------------------------------------------
84,880 52,183 159,856 105,714
Expenses:
Operating 11,123 8,101 21,604 14,450
Transportation 2,798 1,462 5,218 2,822
General and administrative 1,559 1,185 2,805 1,701
Stock-based compensation 2,326 1,352 4,238 2,627
Interest 5,238 2,770 9,680 4,488
Depletion, depreciation
and accretion 38,543 25,292 77,457 48,277
---------------------------------------------------------------------------
61,587 40,162 121,002 74,365
---------------------------------------------------------------------------
Earnings before taxes 23,293 12,021 38,854 31,349
Taxes:
Capital - (344) - -
Future 4,650 (9,313) 9,523 (2,462)
---------------------------------------------------------------------------
4,650 (9,657) 9,523 (2,462)
---------------------------------------------------------------------------
Net earnings and
comprehensive income 18,643 21,678 29,331 33,811
Retained earnings,
beginning of period 156,473 93,080 139,309 80,947
Change in accounting
policy (Note 1) - - 6,476 -
---------------------------------------------------------------------------
Retained earnings,
end of period $ 175,116 114,758 $ 175,116 114,758
---------------------------------------------------------------------------
Net earnings per share: (Note 4g)
Basic $ 0.33 0.42 $ 0.53 0.66
Diluted 0.33 0.40 0.53 0.63
---------------------------------------------------------------------------
---------------------------------------------------------------------------

See accompanying notes to interim financial statements.



INTERIM STATEMENTS OF CASH FLOWS

Three Months Ended Six Months ended
June 30 June 30
-----------------------------------------
(Unaudited)
(Thousands of dollars) 2007 2006 2007 2006
---------------------------------------------------------------------------
Cash provided by (used in):
Operations:
Net earnings $ 18,643 21,678 $ 29,331 33,811
Items not involving cash:
Depletion, depreciation,
and accretion 38,543 25,292 77,457 48,277
Stock-based compensation 2,326 1,352 4,238 2,627
Future income taxes 4,650 (9,313) 9,523 (2,462)
Unrealized loss (gain)
on financial instruments (4,405) - 2,904 -
Abandonment expenditures - (12) - (86)
Change in non-cash operating
working capital 5,114 2,871 10,175 6,787
---------------------------------------------------------------------------
64,871 41,868 133,628 88,954
Financing:
Issue of common shares,
net of issue costs 60,680 54,032 102,752 110,133
Increase in long-term debt 24,867 49,932 74,862 96,211
---------------------------------------------------------------------------
85,547 103,964 177,614 206,344
Investments:
Additions to property, plant,
and equipment (83,681) (108,136) (220,415) (271,527)
Property (acquisitions)
/dispositions (293) 12,169 (1,024) 17,042
Change in non-cash
working capital (66,444) (49,865) (89,803) (40,813)
---------------------------------------------------------------------------
(150,418) (145,832) (311,242) (295,298)
Increase (Decrease) in cash - - - -
Cash, beginning of period - - - -
---------------------------------------------------------------------------
Cash, end of period - - - -
---------------------------------------------------------------------------
Cash tax $ - 646 $ - 1,279
Cash interest $ 4,608 4,290 $ 9,967 5,803
---------------------------------------------------------------------------
---------------------------------------------------------------------------

See accompanying notes to interim financial statements.


NOTES TO FINANCIAL STATEMENTS

Information as at June 30and for the three months ended is unaudited

(Tabular Amounts in Thousands of Dollars)

1. SIGNIFICANT ACCOUNTING POLICIES:

The financial statements of the Corporation have been prepared by management in accordance with Canadian generally accepted accounting principles for Interim Financial Statements. These interim financial statements follow the same accounting policies and methods as the financial statements for the year ended December 31, 2006, except as noted below, and include all adjustments necessary to present fairly the results for the interim period. Certain information and footnote disclosure normally included in the annual financial statements has been omitted. These interim financial statements should be read in conjunction with the financial statements and notes for the year ended December 31, 2006.

CHANGE IN ACCOUNTING POLICY

On January 1, 2007, the Company adopted the new Canadian accounting standards for financial instruments-recognition and measurement, financial instruments-presentation and disclosures, hedging and comprehensive income. Prior periods have not been restated.

At January 1, 2007, the following adjustments were made to the balance sheet to adopt the new standards:



Increase (decrease) At January 1, 2007
---------------------------------------------------------------------------
Fair value of financial instruments $ 9,600
Future income tax liability (3,124)
Retained earnings 6,476
---------------------------------------------------------------------------


(A) FINANCIAL INSTRUMENTS-RECOGNITION AND MEASUREMENT

Financial instruments are required to be measured at fair value on the balance sheet upon initial recognition of the instrument. Measurement in subsequent periods depends on whether the financial instrument has been classified in one of the following categories: held-for-trading, available-for-sale, held-to-maturity, loans and receivables, or other financial liabilities as defined under the new standard.

Under adoption of these standards, cash and cash equivalents are designated as held-for-trading and are measured at carrying value, which approximates fair value due to the short-term nature of these instruments. Accounts receivable and accrued revenues are designated as loans and receivables. The Investment is a non-speculative, non-derivative portfolio investment that is not quoted in an active market, therefore it has not been marked-to-market. Accounts payable and accrued liabilities and long-term debt are designated as other liabilities. Risk management assets and liabilities are derivative financial instruments classified as held-for-trading, see further discussion below.

(B) DERIVATIVES

The Company continues to utilize financial derivatives, such as commodity sales contracts requiring physical delivery, to manage the price risk attributable to anticipated sale of petroleum and natural gas production. Refer to note 7 to the Company's 2006 annual financial statements for additional disclosure on the Company's risk management objectives.

The Company has elected to account for its commodity contracts, whose purpose is to be held for receipt or delivery of non-financial items in accordance with the expected purchase, sale or usage requirements on a mark-to-market basis. Prior to adoption of the new standards, physical receipt and delivery contracts did not fall within the scope of the definition of a financial instrument and were accounted for on an accrual basis.

(C) EMBEDDED DERIVATIVES

On adoption, the Company elected to recognize, as separate assets and liabilities, only for those embedded derivatives in hybrid instruments issued, acquired or substantively modified after January 1, 2003. The Company did not identify any material embedded derivatives which required separate recognition and measurement.

(D) EFFECTIVE INTEREST METHOD

Transaction costs attributable to financial instruments classified as other than held-for-trading are included in the recognized amount of the related financial instrument and recognized over the life of the resulting financial instrument. Prior to January 1, 2007, transaction costs were recorded as deferred charges and recognized in net earnings on a straight-line basis over the life of the financial instrument. On adoption, transaction costs are amortized using the effective interest rate method.

2. CAPITAL ASSETS:

The cost of unproven lands and seismic costs at June 30, 2007 of $77.1 million (December 31, 2006 - $87.2 million) has been excluded from the depletion calculation.

General and administrative expenditures of $4.7 million (2006 - $2.2 million) have been capitalized and included as costs of petroleum and natural gas properties. Included in this amount is the non-cash related stock-based compensation of $3.2 million, which includes the associated future tax liability of $1.0 million.

3. LONG-TERM DEBT:

The Corporation has a syndicated financing arrangement with a group of Canadian Chartered banks for an extendible revolving loan in the amount of $440 million in addition to a $25 million operating line. The terms of this agreement are unchanged from the previous credit agreement. As at June 30, 2007, $400 million of this term loan was drawn.

4. SHARE CAPITAL:

(A) AUTHORIZED:

Unlimited number of common shares and Class A common shares

Unlimited number of first preferred shares and second preferred shares, each issuable in series



(B) COMMON SHARES ISSUED:

Number of
Shares Amount
---------------------------------------------------------------------------
Balance, December 31, 2006 53,961,607 $ 531,651
For cash on private placement of
flow-through shares 1,000,000 41,500
For cash on public share issue 1,500,000 60,525
For cash on exercise of stock options 895,167 5,650
Contributed surplus on exercise of stock options - 2,300
Share issue costs - (4,923)
Tax effect on share issue costs - 1,517
Tax effect on flow-through renunciation - (30,640)
---------------------------------------------------------------------------
Balance, June 30, 2007 57,356,774 $ 607,580
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(C) FLOW-THROUGH SHARES:

At June 30, 2007 the Corporation estimates that it has fully spent the $48.1 million of the October 2006 flow-through offering and has a $26.1 million remaining of the obligation for the February 2007 flow-through offering, which must be completed by December 31, 2008.



(D) CONTRIBUTED SURPLUS:

---------------------------------------------------------------------------
Contributed surplus, December 31, 2006 $ 12,323
Stock-based compensation 6,520
Exercise of stock options (2,300)
---------------------------------------------------------------------------
Contributed surplus, June 30, 2007 $ 16,543
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(E) STOCK OPTIONS:

The Corporation has a rolling stock option plan. Under the employee stock option plan, the Corporation may grant options to its employees for up to 10% of outstanding common stock. The exercise price of each option equals the market price of the Corporation's stock on the date of grant and an option's maximum term is five years. Options are granted throughout the year and vest 1/3 on each of the first, second and third anniversaries from the date of grant.

Changes in the number of options, with their weighted average exercise price, are summarized below:



Weighted
average
Number of exercise
Options price
---------------------------------------------------------------------------
Stock options outstanding, beginning of period 5,119,985 $ 23.51
Granted 1,385,000 37.58
Exercised (895,167) 6.31
Forfeited (40,000) 30.59
---------------------------------------------------------------------------
Stock options outstanding, end of period 5,569,818 $ 29.73
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(F) STOCK-BASED COMPENSATION:

The weighted average fair value of the stock options granted during the period was $9.66 (2006 - $11.07) per option and is estimated on the date of grant using the Black-Scholes option-pricing model with weighted average assumptions for grants as follows:



Three Months Ended June 30
---------------------------------------------------------------------------
2007 2006
---------------------------------------------------------------------------
Risk-free interest rate (%) 4.5 4.5
Expected life (in years) 3.5 3.5
Expected volatility (%) 35 30
Expected forfeitures (%) 10 10
---------------------------------------------------------------------------
---------------------------------------------------------------------------


(G) PER SHARE AMOUNTS:

Per share amounts have been calculated on the weighted average number of shares outstanding. The weighted average shares outstanding for the quarter ended June 30, 2007 was 56,143,230 (55,482,751 six months).

In computing diluted earnings per share for the quarter ended June 30, 2007, 692,272 (303,713 six months) shares were added to the weighted average number of common shares outstanding for the dilution from the stock options. For the three months ended June 2007 there were no (2,528,500 six months) options excluded from the diluted earnings per share calculation on the basis that they were anti-dilutive.

5. FINANCIAL INSTRUMENTS:

Changes in the fair value of all outstanding non-financial commodity contracts are reflected on the balance sheet with a corresponding unrealized gain or loss in income.

The following table reconciles the changes in the fair value of financial instruments outstanding on June 30, 2007:



Fair value of Financial Instruments June 30, 2007
---------------------------------------------------------------------------
Balance, January 1, 2007 $ 9,600
Unrealized loss on financial instruments (2,904)
---------------------------------------------------------------------------
Fair value of financial instrument asset, June 30, 2007 6,696
---------------------------------------------------------------------------


As at June 30, 2007, the Corporation had fixed the price applicable to future production as follows:



Fair
Volume Remaining Term Pricing Value
---------------------------------------------------------------------------

AECO Fixed Price 3,000 gj's/day July - December 2007 $7.76 Cdn/gj $ 830

AECO Fixed Price 5,000 gj's/day July - October 2007 $7.30 Cdn/gj 1,024

AECO Index 10,000 gj's/day July - October 2007 $7.00 Cdn/gj 1,603
Costless Collar floor / $8.57
Cdn/gj ceiling

AECO Index 6,000 gj's/day July - October 2007 $6.02 Cdn/gj 254
Costless Collar floor / $7.05
Cdn/gj ceiling

AECO Index 4,000 gj's/day July - October 2007 $6.25 Cdn/gj 242
Costless Collar floor / $7.37
Cdn/gj ceiling

AECO Index 5,000 gj's/day July - October 2007 $7.00 Cdn/gj 784
Costless Collar floor / $7.80
Cdn/gj ceiling

AECO Index 5,000 gj's/day July - October 2007 $7.00 Cdn/gj 806
Costless Collar floor / $8.91
Cdn/gj ceiling

AECO Index 3,000 gj's/day July - October 2007 $7.65 Cdn/gj 660
Costless Collar floor / $8.17
Cdn/gj ceiling

AECO/Nymex 5,000 MMbtu/day July - October 2007 Nymex less 493
Differential swap $0.83/mmbtu
---------------------------------------------------------------------------

$6,696
---------------------------------------------------------------------------
---------------------------------------------------------------------------


6. TAXES:

During the second quarter of 2007, the federal government substantively enacted legislation reducing the federal tax rates. This legislation has reduced the Corporation's income tax liability and provision for future income taxes by $2.4 million.

NOTICES:

CONFERENCE CALL

On Friday, August 10, 2007 Duvernay will hold a conference call at 10:00 AM Mountain Standard Time (12:00 Eastern) discussing Duvernay's second quarter financial and operating results. To access this conference please call 416.644.3424 in Toronto or 866.249.2165 toll free. The conference number is 21241086.

FORWARD LOOKING INFORMATION

Certain information set forth in this press release contains forward-looking statements. Forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Duvernay's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned 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. Duvernay'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 Duvernay will derive therefrom. Duvernay disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as expressly required by applicable securities laws.

Per barrel of oil equivalent ("boe") amounts have been calculated using a conversion rate of six thousand cubic feet of natural gas to one barrel of oil equivalent (6:1). Barrel of oil equivalents (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6mcf:1bbl of oil is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Additional information about Duvernay Oil Corp. may be found in documents filed on SEDAR at www.sedar.com and which are also available on Duvernay's website www.duvernayoil.com.

Contact Information

  • Duvernay Oil Corp.
    Michael Rose
    President and C.E.O.
    (403) 571-3600
    or
    Duvernay Oil Corp.
    Brian Robinson
    Vice-President, Finance and C.F.O.
    (403) 571-3609
    or
    Duvernay Oil Corp.
    Scott Kirker
    Manager - Corporate Affairs
    (403) 571-3683
    or
    Duvernay Oil Corp.
    1500 - 202 6th Avenue S.W.
    Calgary AB T2P 2R9
    (403) 571-3600
    (403) 269-6510 (FAX)
    Email: info@duvernayoil.com
    Website: www.duvernayoil.com