Expedition Energy Inc.
TSX VENTURE : XPD

Expedition Energy Inc.

August 27, 2007 16:21 ET

Expedition Announces Filing of 2007 Second Quarter Interim Report

CALGARY, ALBERTA--(Marketwire - Aug. 27, 2007) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or "Corporation") announces that the Corporation's second quarter 2007 Financial Statements together with the related management's discussion and analysis (MD&A) 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 second quarter 2007 include:

- Q2 average sales 403 boepd.

- Revenue net of royalties of $1,464,877.

- Cash flow $599,699 or $0.02 per share compared to $497,686 in Q2 2006, year to date June 30, 2007 cash flow of $1,464,877 or $0.05 per share.

- Earnings of $442,901 compared to $311,398 in the same period in 2006.

Ongoing operations

Operations for the period consisted of one re-completion (started in March/07), surface acquisition and licensing of three new drilling locations. At Erskine AB. a re-completion in the Edmonton sands, Horseshoe Canyon coals, Belly River formations resulted in commingled gas production. This well is performing as predicted and we look forward to drilling the three follow-up wells in the third quarter.

Sales in the period were 403 boepd, as mentioned in the first quarter report break up and facility maintenance restricted production at Kerrobert, SK. and Nevis AB. during the period. Production has been restored and the current field reported rate is approximately 420 boepd.

The Corporation has entered into firm fixed quantity gas contracts with its natural gas purchaser. The contracts are for 1200 gigajoules ("Gj") a day @ $7.49/Gj for the period of April 1, 2007 to October 31, 2007. The Corporation has also entered into firm fixed quantity gas contract for the period of November 1, 2007 to March 31, 2008 with the same purchaser. The contract is for 800 gigajoules ("Gj") per day at average price of $8.67/Gj. The mark-to-market value at June 30, 2007 for these contracts in place was a gain of $389,127.

The term barrels of oil equivalent or 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 Company 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 company 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 & CEO
    (403) 264-1699
    or
    Expedition Energy Inc.
    Neil Burrows
    Vice-President Finance & CFO
    (403) 264-1699
    or
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    (403) 264-1699
    (403) 264-1499 (FAX)
    Website: www.xpdenergy.com