Long View Resources Corporation

Long View Resources Corporation

April 18, 2007 12:23 ET

Long View Announces 2006 Financial Results

CALGARY, ALBERTA--(CCNMatthews - April 18, 2007) - Long View Resources Corporation (TSX VENTURE:LRC) ("Long View", the "Company" or the "Corporation"), today announced its financial results for the year-ended December 31, 2006. The Company has filed its Audited Financial Statements and related Management's Discussion and Analysis, along with its CEO and CFO certification of the annual filings, and previously filed its required disclosure reports relating to reserves data and other oil and gas information required pursuant to National Instrument 51-101. Copies of all of these documents can be accessed through SEDAR at www.sedar.com.

2006 Achievements:

- Increased cash flow from operations (excluding non-cash items) by 78% to $1,887,744 in 2006 vs. 2005

- Increased revenues by 74% year-over-year.

- Increased average production by 71% to 216 boepd in 2006 versus 126 boepd in 2005, year-over-year.

- Reduced unit general and administrative expense by 23% in 2006 versus 2005 to $6.98 per boe

- Participated in the drilling of 4 wells (4.00 net) in 2006.

Long View Resources Corporation became a public company in November 2004, and has grown substantially from its base as a private company in 2003 with an average annual production rate of approximately 20 boepd to its 2006 exit rate of 160 boepd.

The following tables detail the progress made by the Company in 2006 in relation to 2005 and 2004, and readers are cautioned to read this press release in conjunction with the audited annual financial statements and management discussion and analysis for the period ending December 31, 2006:


Year Ended December 31st
Selected Operating & Financial
Highlights 2006 2005 2004

Average - boepd 216 126 42
Exit - boepd 160 204 86
Average price per boe $ 62.80 $ 60.79 $ 55.73

Revenue $ 5,106,951 $ 2,942,521 $ 847,974
Operating cash net back (1) $ 2,636,244 $ 1,542,572 $ 315,445
Net income (loss) after taxes $ 388,452 $ 125,056 $ (3,551)
Basic and diluted earnings per
share $ 0.01 $ - $ -
Cash flow from operations $ 3,162,110 $ 505,972 $ 840,013
Cash flow from operations
(excluding non-cash items) $ 1,887,744 $ 1,061,853 $ 175,370
Capital expenditures $ 3,916,433 $ 3,974,476 $ 1,566,709
Working capital surplus
(deficit) $ (647,375) $ 856,534 $ (49,691)
Total assets $ 18,700,693 $ 18,372,608 $ 2,589,210
Future tax & asset retirement
obligation $ 5,436,400 $ 5,491,900 $ 300,400
Bank debt $ - $ - $ -
Shareholders' equity $ 11,289,647 $ 10,383,115 $ 1,345,516

Drilling activity
Total wells 4 6 3
Net wells 4.00 4.08 0.75

Reserves (Mboe) (1)
Proved reserves 473.2 642.3 258.9
Probable reserves 1,002.5 1,094.3 184.1
Proved plus probable reserves 1,475.7 1,736.6 443.0

Reserves Value @ 10% Before
Tax ($M) (1)
Proved reserves $ 8,144 $ 11,900 $ 1,670
Probable reserves $ 13,398 $ 17,482 $ 1,436
Proved plus probable reserves $ 21,542 $ 29,382 $ 3,106

Gross acres 52,544 44,906 6,164
Net acres 39,975 36,714 3,425

(1) Note: -Operating cash net back consists of production revenues less
royalties less operating costs.
-Reserve figures provided by Sproule Associates Limited as at
December 31, 2006, based on escalated pricing. It should be noted
that subsequent to December 31, 2006, the Company divested of
its interest in the Viewfield property for cash consideration of
$4.25 million plus closing adjustments. The Sproule report
attributed 52.0 Mboe and 271.1 Mboe, respectiely, for the
volumes of proved and proved plus probable reserves for the
Viewfield property.

Outlook for 2007

On March 9, 2007, Long View announced that it had signed an agreement with Reece Energy Exploration Corp. ("Reece") of Medicine Hat, Alberta (TSXV - "RXR") pursuant to which the two companies plan to amalgamate on the basis of 0.25 shares of the resulting issuer for every share of Long View, and 1.00 share of the resulting issuer for every share of Reece, pending shareholder and regulatory approval, and the satisfaction of certain other conditions precedent. The board of directors for the Company believe that the proposed amalgamation with Reece is immediately accretive and provides Long View shareholder with greater opportunities for value growth. Reece maintains property in western and southeast Saskatchewan. These assets are complimentary to Long View's southeast Saskatchewan property holdings.

More detailed information regarding the Transaction, including reserves, and historical financial and pro-forma financial information will be forthcoming in a joint information circular that will be mailed to shareholders of Long View and Reece in advance of the date of the Special Meetings of the shareholders of Long View and Reece to consider and vote upon the Transaction.

Management and the board of directors for Long View look forward to concluding the transaction with Reece and believe that the resulting company will benefit shareholders with increased cash flow, greater access to capital and a more diversified asset mix.

As part of the Transaction, Kevin T. Patterson, CFA, President and Chief Executive Officer and a director of Long View, and John A. Styles, P.Eng., Chairman, Chief Operating Officer, Chief Financial Officer and a director of Long View will join those individuals presently on Reece's current board of directors, giving a total of seven directors for the resulting issuer.

About Long View

Long View Resources Corporation is a TSX Venture Exchange-listed public energy company with producing assets in southeastern Saskatchewan. Long View trades under the symbol "LRC".

ADVISORY: Certain information regarding Long View Resources Corporation in this news release including management's assessment of future plans and operations, number of locations in drilling inventory and wells to be drilled, timing of drilling and tie-in of wells, timing of completions and construction of facilities, expected production rates, drilling success rates, dates of commencement of production and capital expenditures and timing thereof, 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 reserves estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. The recovery and reserves estimates of Long view's reserves provided herein are estimates only, and there is no guarantee that the estimated reserves will be removed. 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 affect Long View's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com), and at Long View's website (www.longviewresources.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Long View 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.

Disclosure provided herein in respect of barrels of oil equivalent (boe) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 thousand cubic feet (mcf) per boe 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