Glamis Resources Ltd.

Glamis Resources Ltd.

November 26, 2007 09:00 ET

Glamis Resources Reports Third Quarter 2007 Financial & Operational Results

CALGARY, ALBERTA--(Marketwire - Nov. 26, 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's Discussion and Analysis ("MD & A") for the three and nine month period ended September 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 Three
Months Months
Ended Ended %
Sept 30 June 30 Change
2007 2007

Petroleum & natural gas revenue 1,120,282 1,041,898 8
Funds flow from operations 307,147 5,923 n/a
Per share (basic) 0.01 0.00 n/a
Net loss (202,669) (2,086,115) (90)
Per share (basic) (0.01) (0.09) (89)
Capital expenditures, net 2,998,968 1,665,481 80
Working capital (deficit) (858,382) 1,833,438 n/a
Weighted common shares o/s basic(2) 23,996,655 23,865,283 1

Crude oil & NGLs (bbls/d) 198 205 (3)
Natural gas (mcf/d) 62 127 (51)
Total (boe/d) 208 226 (8)

Crude oil & NGLs ($/bbl) 58.36 50.01 17
Natural gas ($/mcf) 5.87 8.10 (28)
Average ($/boe) 58.16 50.69 15

Netbacks ($/boe)
Petroleum & natural gas revenue 58.16 50.69 15
Processing 0.36 0.37 (3)
Royalties (4.32) (4.10) 5
Operating costs (23.68) (22.19) 7
Operating netback 30.52 24.77 23

(1) For comparative purpose, Glamis did not have any oil and gas operations
prior to August 11, 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 September 30,
2007 closing price of Class A Shares of $0.40.

Glamis' third quarter highlights are as follows:

- Focused activities on building a meaningful position in the Company's Queensdale, southeast Saskatchewan project area; increased its 100% working interest land position to 1,440 acres. Completed the acquisition and interpretation of a 5.9 square mile 3D seismic program which identified several horizontal drilling locations and two stand alone exploratory anomalies

- Production averaged 208 boe/d for the period, an 8% reduction from the prior quarter, as a result of natural declines. Production is comprised of 95% oil and 5% natural gas

- As a result of higher oil prices, funds flow from operations increased significantly for the quarter to $307,147 ($0.01 per share) compared to $5,923 ($0.00 per share) in the prior period

- Secured a $3.5 million line of credit with the Alberta Treasury Branch to enhance financial flexibility, with a remaining balance of $3,115,000 unutilized capacity

- Drilled 4 (2.25 net) exploratory wells in the Peace River Arch area. 3 (1.75 net) were unsuccessful with the fourth (0.5 net) well in Wembley currently being evaluated

Subsequent to September 30, 2007, Glamis:

- Is currently drilling the first Queensdale horizontal well, targeting high netback light oil from the Alida Formation. The company's second location is expected to be drilled in Q1 2008

- Will meet its 2007 flow through share obligations upon completion of its Q4/07 drilling program


Glamis concentrated the majority of its third quarter activities and resources on developing its project at Queensdale, Saskatchewan. Glamis' technical team is focused on this emerging core area which is targeting high netback, 36 degree light oil from the Alida formation. With the first well currently being drilled Glamis looks forward to increasing activity in this area. A second well is expected to be spud in Q1/08. In addition to Queensdale, Glamis has a 70% working interest in 320 acres of land in the Griffin/Innes area of SE Saskatchewan. These lands are offsetting recently drilled Bakken horizontal wells and can be developed with 4 well Bakken horizontal drilling program.

Glamis will focus its efforts in 2008 on its projects in southeast Saskatchewan, however the Company will also continue to seek out high impact plays on the Peace River Arch.

Glamis has reviewed and analyzed the proposed changes to the Alberta government's royalty regime and has determined that, if implemented, it would have a positive impact on the Company's current projects. Glamis will continue to maintain a disciplined approach to managing its capital and assets and will seek out those opportunities with the potential to add significantly to the Company's production and reserve base.

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.

Contact Information

  • Glamis Resources Ltd.
    Mr. Brent McKercher
    President & Chief Executive Officer
    (403) 265-7200 ext. 222
    (403) 265-7150 (FAX)
    Glamis Resources Ltd.
    Mr. Darwin Little
    Vice President, Finance & Chief Financial Officer
    (403) 265-7200 ext. 225
    (403) 265-7150 (FAX)