Exceed Energy Inc.
TSX VENTURE : EX.A
TSX VENTURE : EX.B

Exceed Energy Inc.

April 30, 2007 19:06 ET

Exceed Energy Announces 2006 Financial Results

CALGARY, ALBERTA--(CCNMatthews - April 30, 2007) - Exceed Energy Inc. (TSX VENTURE:EX.A)(TSX VENTURE:EX.B) today announced that it has filed its audited financial statements and management's discussion and analysis for the year ended December 31, 2006 as well as the Company's 52-109 F1 & F2 CEO and CFO Certificates. The Company has filed separately National Instrument 51-101, Standards for Disclosure for Oil and Gas Activities. This press release is meant to be read in concurrence with the above filed documents. Copies of these documents are available on SEDAR at www.sedar.com. In May, Exceed Energy Inc. ("Exceed" of the "Company") will file with the securities commissions its 2007 Management Information Circular, providing governance and voting information for shareholders in advance of the Company's June 22, 2007 annual general meeting.

Financial Highlights for 2006

(year ended December 31, 2006 comparison to the same period in 2005, where applicable).

- Production increased 80%

- Revenue increased 31%

- G&A decreased 9%

- Operating expenses increased 73%

- Finding costs for 2006 were $27.71 per BOE for proven plus probable reserves

- Cash at end of period was $4,010,890

- The Company is debt free as of December 31, 2006



Selected Financial Information

----------------------------------------------------------------------------
Year ended Year ended
Annual financial data December 31, 2006 December 31, 2005
----------------------------------------------------------------------------

Oil and natural gas revenue, net of
royalties $ 2,137,669 $ 1,707,493
Operating expense 567,702 327,415
----------------------------------------------------------------------------
Operating netback $ 1,569,967 $ 1,380,078

Net loss $ (1,384,402) $ (342,080)
Per share, basic (0.03) (0.01)
Per share, diluted (0.03) (0.01)
Cash flow from operations (non GAAP) $ 734,820 $ 558,971
Per share, basic (non GAAP) 0.02 0.02
Per share, diluted (non GAAP) 0.02 0.02

Total assets $ 15,236,871 $ 13,482,422
Total liabilities $ 3,358,874 $ 4,659,517

Share capital data December 31, 2006 December 31, 2005
----------------------------------------------------------------------------
Number of class A common shares 41,710,007 35,362,420
Number of class B common shares 2,333,602 852,125
Number of options outstanding 2,104,000 -
Average exercise price $ 0.21 $ -
Number of options exercisable 64,000 -
Number of compensation warrants
exercisable 371,429 -
----------------------------------------------------------------------------


Exceed Energy Inc.
Balance Sheets

----------------------------------------------------------------------------
Year ended Year ended
December 31, 2006 December 31, 2005
----------------------------------------------------------------------------
Assets

Current assets
Cash and cash equivalents $ 4,010,890 $ 2,859,061
Accounts receivable 425,560 459,374
Prepaid expenses and deposits 32,239 23,433
----------------------------------------------------------------------------
4,468,689 3,341,868

Refundable deposit 147,342 49,775

Property and equipment 10,620,840 10,090,779
----------------------------------------------------------------------------

$ 15,236,871 $ 13,482,422
----------------------------------------------------------------------------

Liabilities and Shareholders' Equity

Current liabilities
Accounts payable and accrued
liabilities $ 2,415,749 $ 1,005,148

Convertible debenture - 1,864,687
Asset retirement obligation 174,328 272,214
Future income tax 768,797 1,517,468
----------------------------------------------------------------------------
3,358,874 4,659,517

Shareholders' equity
Equity instruments 17,445,682 13,259,275
Equity portion of convertible
debenture - 114,100
Contributed surplus 599,087 231,900
Deficit (6,166,772) (4,782,370)
----------------------------------------------------------------------------
11,877,997 8,822,905
----------------------------------------------------------------------------

$ 15,236,871 $ 13,482,422
----------------------------------------------------------------------------

Note numbers in the Balance Sheet, Statements of Operations and Deficit, and
Statements of Cash Flows refer to notes to be found in the Company's filed
audited financial statements.


Exceed Energy Inc.
Statements of Operations and Deficit

----------------------------------------------------------------------------
Year ended Year ended
December 31, 2006 December 31, 2005
----------------------------------------------------------------------------
Revenue
Oil and natural gas sales $ 2,942,665 $ 2,176,012
Royalty expense (net of Alberta
Royalty Tax Credit) (804,996) (468,519)
Interest 118,237 12,755
----------------------------------------------------------------------------
2,255,906 1,720,248
----------------------------------------------------------------------------
Expenses
Operating 567,702 327,415
General and administrative 665,089 732,976
Stock based compensation 192,466 (19,492)
Interest 201,551 100,886
Depletion, depreciation and
amortization 2,438,787 988,682
Accretion of asset retirement
obligation 34,924 46,262
Amortization of debenture issue costs 47,113 13,811
Accretion of debenture obligation 88,200 25,900
(Gain) on asset retirement obligation
settlement (10,013) -
----------------------------------------------------------------------------
4,225,819 2,216,440

Loss before taxes (1,969,913) (496,192)

Taxes
Future tax recovery 585,511 154,112
----------------------------------------------------------------------------

Net loss for the year (1,384,402) (342,080)

Deficit, beginning of year (4,782,370) (4,440,290)
----------------------------------------------------------------------------

Deficit, end of year $ (6,166,772) $ (4,782,370)
----------------------------------------------------------------------------

Net loss per common share
Basic and diluted $ (0.03) $ (0.01)
----------------------------------------------------------------------------


Exceed Energy Inc.
Statement of Cash Flows

----------------------------------------------------------------------------
Year ended Year ended
December 31, 2006 December 31, 2005
----------------------------------------------------------------------------

Cash provided by (used in)
Operating Activities
Net loss for the year $ (1,384,402) $ (342,080)
Items not requiring cash
Depletion, depreciation and
amortization 2,438,787 988,682
Accretion of asset retirement
obligation 34,924 46,262
Accretion of debenture obligation 88,200 25,900
Amortization of debenture issue
costs 47,113 13,811
Future tax recovery (585,511) (154,112)
Stock based compensation 192,466 (19,492)
Gain on asset retirement obligation 10,013
Asset retirement liabilities settled (106,770) -
----------------------------------------------------------------------------
734,820 558,971
Changes in non-cash working capital
related to operating activities 124,142 409,539
----------------------------------------------------------------------------
858,962 968,510
Financing Activities
Proceeds from issuance of debenture,
net of costs - 1,939,076
Issue of share capital, net of costs 2,108,648 2,908,615
Shares repurchased (25,780) -
Change in non-cash working capital
balances related to financing
activities (79,512) (132,083)
----------------------------------------------------------------------------
2,003,356 4,715,608
Investing Activities
Additions to property and equipment (3,191,782) (3,395,530)
Proceeds from disposal of property &
equipment 272,544 275,000
Increase in refundable deposit (97,567) -
Change in non-cash working capital
balances related to investing
activities 1,305,316 (2,963,284)
----------------------------------------------------------------------------
(1,711,489) (6,083,814)
----------------------------------------------------------------------------

Increase (decrease) in cash and cash
equivalents 1,150,829 (399,696)

Cash and cash equivalents, beginning
of year 2,859,061 3,258,757

----------------------------------------------------------------------------
Cash and cash equivalents, end of year $ 4,009,890 $ 2,859,061
----------------------------------------------------------------------------

Cash interest payments $ 255,283 $ 60,387
----------------------------------------------------------------------------


Forward Looking Statements

This press release may contain forward-looking statements including expectations of future production, cash flow and earnings. Certain information regarding Exceed 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, expected production rates, drilling success rates, dates of commencement of production, may constitute forward-looking statements under applicable securities laws and necessarily involve risks. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projects relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from the potential delays or changes in plans with respect to exploration or development projects or capital expenditures. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Exceed's operations or financial results are included in Exceed's reports on file with Canadian securities regulatory authorities that may be accessed at www.sedar.com or through the Company's website, www.exceedenergy.com. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Exceed 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.

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio 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.

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

Contact Information

  • Exceed Energy Inc.
    Richard Wolfli
    President & CEO
    (403) 508-1853
    or
    Exceed Energy Inc.
    1100, 744 - 4th Ave SW
    Calgary, AB T2P 3T4
    (403) 508-1853
    (403) 508-1781 (FAX)
    Website: www.exceedenergy.com