Glamis Resources Ltd.

Glamis Resources Ltd.

August 15, 2008 07:00 ET

Light Oil Discoveries Fuel Record Production and Cash Flow During Glamis Second Quarter

CALGARY, ALBERTA--(Marketwire - Aug. 15, 2008) -


Glamis Resources Ltd. ("Glamis" or the "Company") (TSX VENTURE:GLM.A)(TSX VENTURE:GLM.B) is pleased to announce its second quarter financial and operational results for the three and six months ended June 30, 2008.

The highlights for the second quarter 2008 are as follows:

- Increased average production 42% to 321 boe/d, 99% light oil; Glamis is currently producing approximately 425 boe/d.

- Achieved record cash flow from operations of $1.9 million for the quarter ($0.07 per share fully diluted) as a result of higher oil prices and increased production levels from several new light oil discoveries made earlier in the year at the Company's southeast Saskatchewan properties (Wauchope, Manor & Queensdale).

- Average Company field netbacks of $78.60 per boe.

- Maintained financial flexibility with a positive working capital of $293,000 and available credit facilities of $5.6 million.

- Invested $3.1 million in capital expenditures over the three month period:

-- Drilled two 100% working interest wells; one successful horizontal well at Queensdale, which is now on production, and a second well at Conrad/Taber which was D&A.

-- Increased Glamis' land position in southeast Saskatchewan through a combination of farm-ins, Crown land sales and freehold leases. Glamis now has 1,705 net acres of undeveloped land to explore in this area.

-- Initiated three, 3D seismic programs, totaling 28 square kilometers, in southeast Saskatchewan. All three programs are now complete and are being interpreted by Glamis' technical team.

-- Invested in a new oil battery at Queensdale which is expected to be operational at the end of August. This facility will allow for higher production volumes and is expected to reduce operating costs to below the current $10.00 per barrel in this area.


Glamis continues to focus its resources and efforts on the Company's southeast Saskatchewan properties and is actively drilling in this area. Glamis has now drilled its first 100% working interest development well offsetting its Manor, Tilston discovery made in the first quarter. This well has been completed and commenced production on August 12, 2008. A second, 50% working interest well in the same area is expected to begin drilling by the end of August. An additional two horizontal development wells are expected to be drilled by the end of September. Glamis also has plans for a minimum of four additional wells in southeast Saskatchewan prior to year-end. Subsequent to the end of Q2 Glamis acquired an additional 560 acres of lands in southeast Saskatchewan bringing the total of undeveloped lands to 2,265 acres.


Three Three Six Six
($000s except per unit Months Months Months Months
amounts) Ended Ended Ended Ended
June 30 June 30 % June 30 June 30 %
2008 2007 Change 2008 2007 Change

Petroleum & natural gas
revenue 3,317 1,042 218 5,687 1,947 192
Cash flow from
operations 1,876 184 920 2,415 445 443
Per share (weighted
average) 0.07 0.01 600 0.10 0.02 400
Net earnings (loss) 566 (2,086) n/a 806 (2,386) n/a
Per share (weighted
average) 0.02 (0.09) n/a 0.03 (0.11) n/a
Capital expenditures,
net 3,057 1,665 84 5,640 5,523 2
Working capital 293 1,833 (84) 293 1,833 (84)

Crude oil & NGLs
(bbls/d) 318 205 55 313 198 58
Natural gas (mcf/d) 11 127 (91) 22 108 (80)
Total (boe/d) 321 226 42 317 216 47

Crude oil & NGLs
($/bbl) 113.68 50.01 127 100.00 49.40 102
Natural gas ($/mcf) 11.51 8.10 42 9.43 7.70 22
Average ($/boe) 113.48 50.69 99.65 49.36 102

Netbacks ($/boe)
Petroleum & natural gas
revenue 113.48 50.69 124 99.65 49.36 102
Processing 0.22 0.37 (41) 0.11 0.41 (73)
Royalties (12.28) (4.10) 200 (9.90) (3.76) 1.63
Operating costs (22.83) (22.19) 3 (20.99) (23.15) (9)
Field netback 78.60 24.77 217 68.87 22.87 201

Glamis has filed on SEDAR its unaudited financial statements and related Management's Discussion and Analysis ("MD & A") for the three and six months ended June 30, 2008. 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

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 19,678,321 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 "boe" may be misleading, particularly if used in isolation. A boe conversion 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.

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

Contact Information