High Plains Energy Inc.
TSX VENTURE : HYE

High Plains Energy Inc.

November 20, 2006 21:20 ET

High Plains Energy Inc. Announces Results for the Period Ended September 30, 2006

CALGARY, ALBERTA--(CCNMatthews - Nov. 20, 2006) - High Plains Energy Inc. ("High Plains" or the "Company") (TSX VENTURE:HYE) announces its financial and operating results for the period ended September 30, 2006.



Three Months Nine Months
ended ended
September 30, September 30,
2006 2006

Financial (M$) (M$)
Petroleum and natural gas sales 1,739 5,566
Funds used in operations (1) (284) (12)
Net loss (907) (1,540)
Capital expenditures 1,679 5,920
Working capital deficiency (6,806)
Total assets 31,456
Shareholders' equity 15,811

Operations
Production
Oil and NGLs (Bbls/d) 207 229
Natural gas (Mcf/d) 1,285 1,300
Total production (Boe/d) 421 445

Average selling price
Oil ($/Bbls) 59.53 52.90
Natural gas ($/Mcf) 5.27 6.30
Total sales ($/Boe) 44.90 45.77

Notes:
(1) Funds flow before net change in non-cash working capital balances does
not conform to Generally Accepted Accounting Principles (GAAP). Refer
to the Net Earnings and Funds Flow from Operation section of the
Management's Discussion and Analysis.


During the third quarter, High Plains drilled one well at Lloydminster and one well at Lindbergh. Both were completed as oil wells subsequent to the end of the third quarter. The Company tied in an existing well at Lloydminster to conserve natural gas and that well is producing about 40 Boe/d.

The Company continued to identify projects and moved forward to invest the flow-through monies raised in December 2005. A number of these flow-through-eligible projects have been initiated and are scheduled for completion throughout the fourth quarter. Year-to-date, the Company has invested $5.9 million in capital expenditures. Year-to-date production has averaged 445 Boe/d.

We encourage interested parties to access High Plains' Third Quarter 2006 Financial Statements and Managements' Discussion and Analysis at www.sedar.com.

READER ADVISORY

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio 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.

Statements in this press release may contain forward-looking information including expectations of future production, operating costs, commodity prices, administrative costs, commodity price risk management activity, acquisitions and dispositions, capital spending, access to credit facilities, income taxes, regulatory changes, and other components of cash flow and earnings. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the company. These risks include, but are not limited to, the risks associated with the oil and gas industry, commodity prices and exchange rate changes. Industry related risks could include, but are not limited to, operational risks in exploration, development and production, delays or changes in plans, risks associated to the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of production, costs and expenses. The reader is cautioned not to place undue reliance on this forward-looking information.

The reader is further cautioned that the preparation of financial statements in accordance with generally accepted accounting principles requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. Estimating reserves is also critical to several accounting estimates and requires judgments and decisions based upon available geological, geophysical, engineering and economic data. These estimates may change, having either a negative or positive effect on net earnings as further information becomes available, and as the economic environment changes.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • High Plains Energy Inc.
    Daryl W. Cook
    Chief Executive Officer
    (403) 723-4469
    or
    High Plains Energy Inc.
    Vince Ghazar
    Chief Financial Officer
    (403) 723-4456