Exceed Energy Inc.

Exceed Energy Inc.

April 30, 2009 09:00 ET

Exceed Energy Announces 2008 Financial Results

CALGARY, ALBERTA--(Marketwire - April 30, 2009) - Exceed Energy Inc. (TSX VENTURE:EX.A) today announced that it has filed its audited financial statements and management's discussion and analysis for the year ended December 31, 2008 as well as the Company's NI 51-101 F1, F2 & F3, and the NI 52-109 CEO and CFO Certificates. 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" or the "Company") will file with the securities commissions its 2008 Management Information Circular, providing governance and voting information for shareholders in advance of the Company's June 24, 2009, annual general meeting. As announced on January 30, 2008, effective as of the close of business on Feb. 2, 2009, and pursuant to the articles of the corporation, all of the then issued and outstanding Class B common shares of Exceed Energy Inc. were converted into Class A common shares of the Company.

Year ended December 31, Year ended December 31,
Annual financial data 2008 2007

Oil and natural gas revenue $ 4,853,533 $ 3,580,328
Oil and natural gas revenue,
net of royalties $ 4,236,973 $ 2,913,017
Operating expense 1,228,221 856,594
Operating Net back (non GAAP) $ 3,008,752 $ 2,056,423

Net loss $ (2,042,748) $ (745,495)
Per share, basic (0.03) (0.01)
Per share, diluted (0.03) (0.01)
Cash flow from operations
(non GAAP)(1) $ 2,045,747 $ 1,225,611
Per share, basic (non GAAP) 0.03 0.02
Per share, diluted (non GAAP) 0.03 0.02

Total assets $ 11,177,220 $ 14,006,666
Total liabilities $ 2,697,406 $ 3,591,492

Share capital data December 31, 2008 December 31, 2007
Number of class A common shares 41,186,507 41,368,007
Number of class B common shares 2,333,602 2,333,602
Number of options outstanding 2,640,000 2,100,000
Average exercise price $ 0.22 $ 0.21
Number of options
exercisable 1,708,330 636,667
(1)before changes in non-cash working capital related to operating items

Financial Highlights for 2008

(year ended December 31, 2008 comparison to the same period in 2007, where applicable).

- Net loss for the period was $2,042,748

- Net loss prior to impairment charges was $131,274

- Oil and gas sales increased 36%

- Expenses less impairment increased 22%

- Finding and development costs for proved reserves 2008 was $28.56/BOE

- Cash flow from operations before changes in non-cash working capital related to operating activities increased to $2,045,747, up 67%

- The Company expects to spend $700,000 on capital expenditures in 2009

Commodity prices are expected to remain very low due to macro economic factors causing an over supply in natural gas and crude oil markets. There is some expectation that natural gas prices may recover into the winter of 2009/2010. The Company has in late 2008 and early 2009 instigated a G&A reduction program and is working with its partners to reduce field operating costs. The Company has a limited capital expenditure program for 2009 and as a result its production may decrease in 2009.

The Company has over the last 6 months investigated numerous merger candidates and found all to be non-accretive to shareholders. The Company will continue to investigate mergers, divestitures, and acquisition opportunities in 2009.

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
    (403) 508-1781 (FAX)
    Exceed Energy Inc.
    1100, 744 - 4th Ave SW
    Calgary, AB T2P3T4
    Website: www.exceedenergy.com