Long View Resources Corporation
TSX VENTURE : LRC

Long View Resources Corporation

May 26, 2006 13:32 ET

Long View Resources Corporation Announces Record First Quarter 2006 Results

CALGARY, ALBERTA--(CCNMatthews - May 26, 2006) - LONGVIEW RESOURCES CORPORATION (TSX VENTURE:LRC) ("Long View", the "Company" or the "Corporation"), is pleased to announce record financial results for the first quarter ended March 31, 2006. Company net production averaged 311 barrels of oil equivalent per day during the three-month period ending March 31, 2006, as compared with 82 barrels of oil equivalent for the same period in 2005, and is presently at 300 barrels of oil equivalent per day. The Company has filed its Interim Financial Statements and related Management's Discussion and Analysis, along with its CEO and CFO certification of the interim filings. Copies of these documents can be accessed through SEDAR at www.sedar.com.

First Quarter 2006 Achievements

- Participated in the drilling of 3 wells (2.50 net) at Ingoldsby and Viewfield in southeastern Saskatchewan

- Fulfilled the entire geophysical work commitment on the Saulteaux exploration permit in western Saskatchewan by shooting a high-quality 20 kilometre 2D seismic program

- Achieved a 279% increase in average production versus the first quarter of 2005

- Generated in excess of a four-fold increase in operating cash netback (revenues less royalties less operating expenses) versus the same period in 2005

- Achieved a 106% increase in net income after taxes

- Decreased both operating costs and general and administrative expenses, as a percentage of revenues, to 17.2% from 25.4%, and to 7.7% from 15.1%, respectively

The following table presents highlights for the first quarter of 2006 and should be read in conjunction with the audited financial statements and notes for the year ended December 31, 2005, the unaudited financial statements for the three months ended March 31, 2006 and the Management Discussion and Analysis for each period respectively.



Three Months Ended
Operating & Financial Highlights March 31, 2006 March 31, 2005
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Production:
Average - boepd 311 82
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Average price per boepd $ 57.85 $ 55.96
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Financial
Revenue $ 1,662,664 $ 429,374
Operating cash netback (1) $ 1,025,426 $ 233,117
Net income after taxes $ 305,771 $ 147,870
Cash flow from operations $ 492,370 $ (391,215)
Cash flow from operations
(excluding non-cash items) $ 710,112 $ 195,330
Capital expenditures $ 2,464,092 $ 86,521
Working capital $ (886,246) $ 204,732
Bank debt $ - $ -
Shareholders' equity $ 10,700,886 $ 1,618,901
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(1) Note: Operating cash netback consists of revenues less royalties
less operating costs.


Operational Review

During the first quarter, infrastructure issues were largely resolved with the installation of power, the completion of flow lines and the tie-in of the disposal pump at the Ingoldsby battery. Drilling at Ingoldsby resulted in the addition of two net producing wells. After tie-in of the two wells, oil production at Ingoldsby was hampered by a number of factors including road bans, lease conditions, and more recently, a reduction in inflow from the Ingoldsby 3D8-35 horizontal well. Initial production from the Ingoldsby 3D8-35 well was in the range of 170 to 240 barrels of oil per day in April during the initial three day test period. Once production was re-established after spring break-up, a reduction in total inflow was noted, along with the production of a highly viscous emulsion that plugged the treater and disrupted production at Ingoldsby. Based on recommendations from an independent laboratory, a chemical squeeze treatment was designed and implemented, and the emulsion problem was successfully remedied. The Ingoldsby 3D8-35 horizontal well was restarted after the chemical squeeze, and a stabilized production rate of 118 barrels per day of fluid at a 30% oil cut, for net production from the well of 37 barrels of oil per day was established over the past two days with a fluid level at pump depth. Based on the recent inflow information from the 3D8-35 well, the Frobisher natural water drive may require a supplement, and the conversion of the Ingoldsby 8-35 vertical disposal well to a Frobisher water injector is one of the options being considered to improve inflow.

Outlook

The Company will continue to monitor reservoir pressure at Ingoldsby, and intends to proceed with exploitation plans at Cecil (Alberta), Ingoldsby, Heward, Workman, and on the exploration permit in western Saskatchewan over the balance of the year, pending rig and service availability. The Company has been in consultation with partners, and is in the process of formulating its Bakken exploitation plans on joint venture lands at Viewfield. Enbridge apportionment continues to be of concern, however, the Company has taken measures in cooperation with its marketers to ensure that disruptions are minimized.

ABOUT LONG VIEW RESOURCES CORPORATION:

Long View Resources Corporation is a TSX Venture Exchange Tier 1 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. 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.

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