Javelin Energy Inc.

Javelin Energy Inc.

November 27, 2006 20:08 ET

Javelin Energy Inc.: Announces Second Quarter 2006 Results and Progress on Its Winter Drilling Program

CALGARY, ALBERTA--(CCNMatthews - Nov. 27, 2006) - JAVELIN ENERGY INC. (TSX VENTURE:JAV) ("Javelin" or the "Corporation") is pleased to announce its financial and operating results for the six months ended September 30, 2006 and to provide an update on its previously announced winter drilling program.

Javelin saw a 74% increase in its funds from operations over the prior period and continued to strengthen its balance sheet through debt reduction. Javelin experienced further stabilizing of its production from the Clear Prairie gas field and was very active in planning and obtaining all necessary regulatory approvals for its up coming winter drilling program.


- Funds from operations of $742,206 ($0.044 per share), which represents a 74% increase over the first quarter.

- Operating netback of $19.09 per Boe.

- Average Production of 418 Boe per day.

Results of Operations

Comparative financials results for the quarter are as follows:

Q2 2006 Q2 2005
38,021 Boe Nil Boe
$ $/Boe $ $/Boe
Gross revenues 1,423,116 37.43 - -
Royalties, net of ARTC (351,167) (9.24) - -
Operating costs (346,068) (9.10) - -
Net 725,881 19.09 - -
Other income - - 59 -

G&A 188,575 4.96 189,665 -

Interest 61,308 1.61 30 -
Current taxes (266,208) (7.00) - -
Funds from (used) in operations 742,206 19.52 (189,636) -


Core Area Review - Clear Prairie, Alberta

Javelin has budgeted $4.5 million in capital expenditures for well drilling, completions, work-overs and pipeline and facility installations during the 2006 - 2007 winter drilling season on its Clear Prairie property. Javelin's capital program will be financed from cash flow and its existing credit facilities.

Javelin has commenced its winter drilling, re-completion, work-over and pipelining program with the completion of the Clear Prairie access road to the Clear Prairie gas field. Javelin has received all regulatory approvals for the drilling of two (100% working interest) wells at Clear Prairie, which will evaluate eight prospective zones. Javelin anticipates spudding the first well during the first week of December and the second well during the second week of December. Completion and pipeline tie-in of the wells is anticipated to be completed by the 2006 year-end.

Javelin will also be mobilizing a service rig during the first week of December to commence work-over and re-completion operations on three existing (100% working interest), non-producing wells. The work-over and re-completion program will evaluate production potential from three behind-pipe and three shut-in zones. All three wells are currently tied into the Clear Prairie gas gathering system and can be brought on production by the 2006 year-end. Javelin will also be conducting modifications to the production strings on two (100% working interest) producing gas wells in order to increase production rates from the wells.

Unseasonably cold weather in the Clear Prairie area combined with proper planning and execution by management, has allowed Javelin to access the Clear Prairie gas field and initiate its winter program approximately four weeks ahead of schedule.

Petroleum and natural gas volumes are converted to a common unit of measure on a basis of six thousand cubic feet (Mcf) of gas to one barrel (Bbl) of oil. Boes may be misleading, particularly if used in isolation. The foregoing conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
Forward Looking Statements

Except for statements of historical fact relating to the Corporation, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made, and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Corporation undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change. The reader is cautioned not to place undue reliance on forward-looking statements.

The entire Second Quarter MD&A and interim financial statements can be found on the SEDAR website www.sedar.com.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Javelin Energy Inc.
    Peter Aubrecht
    Chief Executive Officer and President
    (403) 290-0193
    (403) 290-0194 (FAX)
    Javelin Energy Inc.
    Tom Johnson
    Chief Financial Officer
    (403) 560-3262
    (403) 290-0194 (FAX)