Glamis Resources Ltd.

Glamis Resources Ltd.

August 22, 2007 02:00 ET

Glamis Resources Ltd.: Q2/07

CALGARY, ALBERTA--(Marketwire - Aug. 22, 2007) -


Glamis Resources Ltd. (TSX VENTURE:GLM.A) (TSX VENTURE:GLM.B) ("Glamis" or "the Company") is pleased to announce that it has filed on SEDAR its unaudited financial statements and related Management Discussion and Analysis ("MD & A") for the three and six month period ended June 30, 2007. Selected financial and operational information is outlined below and should be read in conjunction with Glamis' unaudited financial statements and related MD & A which are available for review at or


Three Months Three Months %
ended June 30 2007 ended March 31 2007 Change

Petroleum & natural gas
revenue 1,041,898 905,481 15
Funds flow from operations 5,923 21,924 (73)
Per share (basic) 0.00 0.00 -
Net earnings (loss) (2,086,115) (299,721) 406
Per share (basic) (0.09) (0.01) 500
Capital expenditures, net 1,665,481 3,764,525 (56)
Working capital 1,833,438 1,226,699 49
Weighted common shares o/s
basic(2) 23,865,283 21,425,000 1

Crude oil & NGLs (bbls/d) 205 191 7
Natural gas (mcf/d) 127 256 (50)
Total (boe/d) 226 206 10

Crude oil & NGLs ($/bbl) 50.01 48.84 2
Natural gas ($/mcf) 8.10 7.08 14
Average ($/boe) 50.69 48.39 5

Netbacks ($/boe)
Petroleum & natural gas revenue 50.69 48.39 5
Processing 0.37 0.46 (20)
Royalties (4.10) (3.39) 21
Operating costs (22.19) (24.24) (8)
Operating netback 24.77 21.22 17

(1) For comparative purpose, Glamis did not have any oil and gas operations
prior to the third quarter of 2006.

(2) 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 based on the June 30, 2007
closing price of Class A Shares of $0.53.

Glamis' second quarter highlights are as follows:

- Increased production 10% to 226 boe/d from 206 boe/d in prior period; exited the quarter at approximately 240 boe/d (91% oil and 9% natural gas)

- Continued development of the Peace River Arch core area:

-- Completed 17.5 km2 seismic program at Boundary Lake, AB; two light oil and natural gas locations have been identified and surveyed

-- Entered into a farm-in agreement at Flat Rock, BC; cased a high impact exploratory well (25% WI), targeting natural gas in the Kiskatinaw formation

-- Entered into a farm-in agreement at Wembly, AB; currently drilling a development well (50% WI) targeting natural gas in the Nikanassin formation

- Expanded corporate land base, increasing undeveloped acreage positions in its core area at Hanna, in southern Alberta by 640 acres bringing the total, undeveloped land holdings to approximately 22,150 net acres

- Maintained strong balance sheet having closed a $2.6 million flow-through Class A common share financing; exited the quarter with $1.8 million in working capital

Subsequent to June 30, 2007, Glamis:

- Completed 5.5 km2 3D seismic at Queensdale in southeast Saskatchewan; two new development drilling locations targeting light oil from the Alida formation have been identified

- Subsequent to the Queensdale 3D seismic processing and interpretation, Glamis successfully acquired 800 net acres of land bringing Glamis' total landholdings at Queensdale to 1,120 net acres of undeveloped land

- Secured a $3.5 million line of credit with a Canadian Chartered bank to enhance financial flexibility


While second quarter field activity was generally hampered by wet weather, Glamis continued to make progress in developing its core areas through actively licensing drilling locations, participating in farm-in opportunities, acquiring land and evaluating seismic for further locations. Glamis continues to develop its Peace River Arch properties and is currently high-grading its prospects for future development. In southern Alberta, Glamis is evaluating production levels on its recent discoveries at Hanna prior to committing to the next phase of its capital program. Although initial wells have performed below management's expectations, Glamis remains confident in the potential of this area and will continue to seek high-impact opportunities.

With the decline in industry activities beginning to have an impact on reducing costs at the field level, further opportunities, which complement the Company's core focus areas, are becoming more readily available. Glamis, with its strong balance sheet, is in an excellent position to take advantage of these opportunities to expand its production and reserve base for future growth.

Glamis, as an opportunity-driven company, is continually searching for other opportunities that fit within the company's business plan of identifying and drilling high working interest, operated and repeatable exploration prospects, low risk development projects and strategic corporate or property acquisitions.

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 14,77,655 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 including, without limitation, risks 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.

The term BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf: 1bbl 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.

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