Expedition Energy Inc.

Expedition Energy Inc.

April 27, 2007 17:46 ET

Expedition Energy Inc. Anounces Filing of 2006 Year End Results

CALGARY, ALBERTA--(CCNMatthews - April 27, 2007) - Expedition Energy Inc. ("Expedition" or "the Corporation") (TSX VENTURE:XPD) is pleased to release its 2006 year-end results. For a complete copy of Expedition Energy Inc.'s 2006 year-end financial statements, management's discussion and analysis and NI 51-101 Reserve Report filings please visit www.sedar.com or Expedition Energy Inc.'s website at www.xpdenergy.com.

2006 Highlights

- Revenue increased to $6,838,789, 35% higher than 2005.

- Cash flow from operations increased to $2,812,414 or $.09 per share.

- Achieved net earnings from operations of $211,860 or $0.01 per share.

- Increased proved reserves to 925 MBOE, and proved plus probable reserves to 1,361 MBOE, resulting in a proved plus probable NPV at 10% of $19,682,000.

- Increased annual sales volumes to 445 BOE/d, compared to 234 BOE/d in 2005, during the fourth quarter Expedition averaged 466 BOE/d.

- Fourth quarter 2006 cash flow from operations of $954,963 or $0.03 per share.

The Board of Directors has approved the Corporation's 2007 Budget. The budget contemplates cash flow of approximately $3,400,000 of which $1,300,000 will be expended on capital projects. The remaining cash flow will be used to reduce bank debt and will give the Corporation some flexibility as opportunities arise. As well, the Corporation entered into an agreement with its banker that establishes a revolving line of credit for the maximum amount of $6,600,000 ($6,000,000 - December 31, 2006). As well the bank has attached a non revolving acquisition/development demand loan in the amount of $875,000 to this new facility.

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.

Forward Looking Statements:

Certain information set forth in this news release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Expedition'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. Expedition'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, of if any of them do so what benefits Expedition will derive there from. Expedition disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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 and CEO
    (403) 264-1699
    (403) 264-1499 (FAX)
    Expedition Energy Inc.
    Neil Burrows
    Vice-President Finance CFO
    (403) 264-1699
    (403) 264-1499 (FAX)
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    Website: www.xpdenergy.com