Glamis Resources Ltd.

Glamis Resources Ltd.

April 24, 2009 09:00 ET

Glamis Adds One Million Barrels of Light Oil Reserves Through the Drill Bit

CALGARY, ALBERTA--(Marketwire - April 24, 2009) -


Glamis Resources Ltd. (TSX VENTURE:GLM.A)(TSX VENTURE:GLM.B) ("Glamis" or "the Company") is pleased to announce its financial and operating results for the three months and year ended December 31, 2008.

Glamis' highlights for 2008 are as follows:

- Developed a significant light oil pool at Queensdale, Saskatchewan with six, 100% working interest, horizontal wells. Glamis achieved a success rate of 100% with this development program.

- Discovered a new, 100% working interest, light oil pool at Manor, Saskatchewan. Successfully developed this Tilston pool with three additional wells achieving a 100% success rate.

- Successfully drilled a 50% working interest extension to the Manor Alida Oil Pool and a 100% working interest extension to the Arcola Frobisher-Alida Oil Pool.

- Production averaged 365 boe/d for 2008; a 70% increase from the 2007 average; increased year-over-year production per share by 36% and exited 2008 at 647 boe/d (100% oil).

- Reserve Life Index of 5.6 years on a Total Proven basis and 8.4 years on a Total Proven plus Probable basis using December 31, 2008 reserves and Q4 2008 production.

- Increased Total Proved plus Probable reserve volumes by 117% to 1.6 mmboe (97% oil), an increase of 73% on a per share basis over 2007.

- Replaced production by 650%.

- Invested $20.4 million in capital projects:

-- Drilled 13 wells (12.5 net); 12 (11.5 net) oil wells and 1 (1.0 net) dry and abandoned

-- Invested $3.3 million on land and seismic

-- Constructed a 100% working interest oil battery at Queensdale, Saskatchewan

- Significantly increased funds flow over the year to $5,860,000 ($0.20 per fully diluted Class A share) compared to $730,000 ($0.03 per fully diluted Class A share) in the prior year, as a result of increased production volumes and higher oil prices.

- Increased southeast Saskatchewan undeveloped land base by 400% year-over-year to 7,500 net acres.

Fourth Quarter 2008 highlights

- Produced an average of 521 boe/d, 99% oil.

- Achieved funds flow of $1.1 million ($0.04 per share).

- Drilled 3 successful horizontal wells in southeast Saskatchewan.

- Expanded Glamis' land position acquiring 3,420 acres in southeast Saskatchewan and 3,840 acres in southwest Manitoba. Glamis held 19,300 net acres of undeveloped land at year-end

- Shot 18.8 square kilometers of 3D seismic in southeast Saskatchewan. Three drilling locations were identified with the first location to be tested in the second quarter of 2009.

2008 Year End Reserves Summary

This summary of Glamis' reserves evaluation as at December 31, 2008 was prepared by GLJ Petroleum Consultants Ltd. ("GLJ"), the Company's independent reserves evaluator. The National Instrument 51-101 forms F1, F2 and F3 have been filed on SEDAR and can be viewed at or

Gross Company Interest Reserves (as at Dec. 31/08)
(before deduction of royalties payable, not including royalties receivable)

NGL's Gas Oil Oil Eq.
Mbbl MMcf Mbbl Mboe
Proved Producing 34 103 846 898
Proved Developed Non-producing - 27 5 10
Proved Undeveloped 13 38 135 154
Total Proved 47 168 987 1,062
Total Probable 27 162 487 541
Total Proved Plus Probable 74 330 1,473 1,603

Light & Medium Crude
Oil & Natural Gas Conventional Natural Total Oil Equivalent
Liquids (mbbl) Gas (2) (mmcf) (mBOE)
Proved Proved Proved
Plus Plus Plus
Prob- Prob- Prob- Prob- Prob- Prob-
Factors Proved able able Proved able able Proved able able
at Dec.
31, 2007 573 152 725 63 16 79 584 154 738
eries 0 0 0 0 0 0 0 0 0
sions 585 375 959 143 148 291 609 399 1,008
Drilling 0 0 0 0 0 0 0 0 0
recovery 0 0 0 0 0 0 0 0 0
revisions (3) (10) (22) (33) (2) (36) (9) (23) (32)
tions 17 6 23 0 0 0 17 6 23
tions 0 0 0 0 0 0 0 0 0
Factors 0 4 4 1 0 1 0 4 4
tion (138) 0 (138) (5) 0 (5) (139) 0 (139)
at Dec.
31, 2008 1,034 527 1,551 168 162 330 1,062 540 1,602

(1) Table may not add due to rounding
(2) 100% of Glamis' natural gas reserves are residue and solution gas

Net Present Value of Reserves

Below is a table showing the Company's net present value of future net revenue attributable to reserves using forecast prices and costs. The prices used were GLJ Forecast Prices as at January 1, 2009. The estimated future net revenues are presented before deducting future estimated site restoration costs, and are reduced for estimated future abandonment costs and future capital costs associated with non-producing, undeveloped and probable additional reserves. Estimated values disclosed do not necessarily represent fair market value.

Summary of Future Net Revenue Before Income Taxes $(000's)

Discounted at: 0% 5% 10%
Total Proved 42,938 34,395 28,664

Total Probable 23,583 14,191 9,377

Total Proved Plus Probable 66,521 48,586 38,041


Glamis has filed on SEDAR its audited financial statements and related Management Discussion and Analysis ("MD&A") for the three and twelve month period ended December 31, 2008. Selected financial and operational information is outlined below and should be read in conjunction with Glamis' audited financial statements and related MD&A which are available for review at or

Year Year
Ended Ended
Dec 31 Dec 31 %
($000s except per unit amounts) 2008 2007 Change
Petroleum & natural gas revenue 11,284 4,307 162
Funds flow from operations 5,860 730 703
Per share (diluted) 0.20 0.03 566
Net income (loss) 898 (2,729) n/a
Per share (diluted) 0.03 (0.12) n/a
Capital expenditures, net 20,414 10,583 93
Net debt (includes working capital) 7,182 2,525 184
Weighted common shares o/s diluted(1) 29,295 23,330 26

Crude oil & NGLs (bbls/d) 363 200 82
Natural gas (mcf/d) 14 84 (82)
Total (boe/d) 365 214 70

Crude oil & NGLs ($/bbl) 84.24 55.72 51
Natural gas ($/mcf) 9.19 7.14 29
Average ($/boe) 84.07 55.04 53

Netbacks ($/boe)
Petroleum & natural gas revenue 84.07 55.04 53
Processing Revenue 0.28 0.33 (15)
Royalties (7.49) (4.33) 73
Operating costs (18.99) (23.45) (19)

Field netback 57.87 27.59 110

(1) Per share amounts have been calculated on the weighted average number of
shares outstanding after giving effect to the potential conversion of
Class B Shares into Class A Shares at 10:1.

Subsequent to December 31, 2008, Glamis:

- Expanded its bank line to $10.1 million representing an increase of 23% relative to June 30, 2008.

- Increased its land holdings by adding an additional 2,328 acres of land in southeast Saskatchewan and 892 acres in southwest Manitoba.

- Glamis' Vice President of Engineering has resigned his position with the Company for personal reasons.


Glamis' 2008 operating and financial results are the best in the Company's history. We had drilling success, production growth, high netbacks and strong cashflows generated from our core area of southeast Saskatchewan. Glamis replaced production by over six times the 2008 volume. Based on our success we will continue to focus our technical expertise in southeast Saskatchewan. As well, Glamis' technical team has identified high quality opportunities in southwest Manitoba. It is our opinion that southwest Manitoba offers significant upside and complements our southeast Saskatchewan assets.

Despite a successful year, Glamis finds itself in an environment of financial instability. We have seen commodity prices decline steadily since the middle of 2008. As a result of this price decline access to capital has been severely restricted. As such, Glamis has quickly adapted to this new economic environment. We are using a conservative price forecast for the remainder of the year.

Recognizing the commodity price fluctuations that face our industry Glamis remains bullish on oil. We are in the business of adding reserves. We will continue to explore for high quality, long life, light oil reserves in southeast Saskatchewan and on our newly acquired acreage in southwest Manitoba. We will continue to utilize the necessary tools required to increase our chance of success. We are committed to our shareholders. Glamis' management, directors and technical professionals continue to hold significant ownership positions ensuring a strong alignment with that of our shareholders.

Glamis Resources Ltd. is a junior oil and gas company formed to generate and develop its own prospects, acquire oil and gas properties and participate with joint venture partners in oil and gas exploration and development in the Western Canadian Sedimentary Basin. The Company's Class A Shares and Class B Shares trade on the TSX Venture Exchange under the symbols GLM.A and GLM.B. The Company currently has 24,190,442 Class A shares and 922,500 Class B shares outstanding.

FORWARD LOOKING STATEMENTS: Certain information regarding Glamis 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 and productive capacity from different 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 and assumptions including, without limitation, risks and assumptions associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, unexpected decline rates in wells, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Glamis' operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Furthermore, the forward looking statements contained in this news release are made as at the date of this news release and Glamis 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.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

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