Expedition Energy Inc.
TSX VENTURE : XPD

Expedition Energy Inc.

November 28, 2006 13:50 ET

Expedition Announces Filing of 2006 Third Quarter Interim Report and Operations Update

CALGARY, ALBERTA--(CCNMatthews - Nov. 28, 2006) - Expedition Energy Inc. ("Expedition" or "Corporation") (TSX VENTURE:XPD) announces that the Corporation's third quarter 2006 Interim Financial Statements together with the related management's discussion and analysis have been filed. For a complete copy of the report please visit www.sedar.com or the Corporation's website at www.xpdenergy.com.

Highlights of the third quarter 2006 include:

- Revenue net of royalties of $1,404,900 compared to $1,284,525 in Q3 2005.

- Cash flow of $641,008 compared to $861,641 in Q3 2005.

- Loss on earnings of ($330,850) compared to earnings of $282,997 in the same period in 2005.

- Q3 average production of 459 BOE/d compared to 310 BOE/d in Q3 2005, an increase of 48%.

- Reduced operating costs 8% from $8.88 per BOE in Q2, 2006 to $8.18 per BOE in Q3 2006.

Third Quarter and Ongoing Operations

During the third quarter two (1.0 net) wells were drilled, one at Kerrobert SK, and one at Willesden Green AB. In July a horizontal oil well was drilled at Kerrobert. Current production from this well has stabilized at approximately 70 bbls/d (35 bbls/d net). In August, at Willesden Green AB (east of Ferrier), a 32.5% earned WI well was drilled and cased for the targeted gas formation, however, the completion revealed depleted formation pressure and very low rates, this interval was subsequently abandoned. Although this zone was abandoned other horizons are prospective. As a result, the Corporation participated in the purchase of 3/4 sections of offsetting land. A well drilled at Cessford AB. in the second quarter was completed in the third quarter and subsequently tied in and recently placed on production at approximately 20 BOE/d net.

The third quarter reflects ongoing improvements in production as the Corporation's average production increased to 459 BOE/d as compared to 310 BOE/d in Q3 2005. Production in September averaged 453 BOE/d, weighted approximately 74% gas and 26% oil and NGLs.

Early in the fourth quarter 2006, Expedition participated in drilling at Niton AB (0.3 net); this well was dry and abandoned. At Phoenix AB. (40% WI before completion and 61% WI after completion) a deep exploratory well has been recently drilled and cased. Management is encouraged with well logs and drilling results. The Corporation and its partners are proceeding with a multi zone completion and testing program which will begin in the near term. Phoenix AB. is a liquid rich, multi zone gas prone area.

Two wells (1.0 net) remain to be drilled in the 2006 program. Drilling will commence shortly as the rig is being moved onto the first location at Ante Creek AB., this well is targeting light oil and gas. The second well, also in the Ante Creek area will be drilled targeting gas.

To date the Corporation has added approximately 8,000 net acres though land sales and farm-ins bringing the current undeveloped acreage to approximately 16,000. The land acquisitions have added new opportunities of which early stage evaluation has begun. Further buying, shooting and evaluation of seismic data has begun or will be under way in the near term to help determine drilling locations and further potential on these lands.

The Corporation has hedged 600 GJ's per day at a price of $10.50 per GJ, November 1, 2006 through March 31, 2007 and as well as a further 600 GJ's at $7.12 per GJ for the period April 1, 2007 through October 31, 2007.

The term barrels of oil equivalent BOE may be misleading, particularly if used in isolation. The BOE conversion ratio used by Expedition 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. All BOE conversions herein are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.

This information contains forward-looking statements (forecasts) under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements.

Expedition Energy Inc. is an emerging Alberta based public corporation actively engaged in the exploration, development and production of crude oil and natural gas in Western Canada. The Corporation continues to follow its strategy of internally developing prospects, securing land in core areas, and growing predominantly through drilling. Selective acquisitions that support core area growth are also considered. The Corporation strives to maintain a high working interest and operate properties. Expedition's shares are listed for trading on the TSX Venture Exchange under the symbol XPD.

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

Contact Information

  • Expedition Energy Inc.
    Scott St. John
    President and CEO
    (403) 264-1699
    or
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    (403) 264-1499 (FAX)
    Website: www.xpdenergy.com
    or
    QIS Capital Corp.
    Doren Quinton
    Investor Relations
    (250) 376-8989
    Email: info@qiscapital.com