Long View Resources Corporation

Long View Resources Corporation

November 29, 2006 15:00 ET

Long View Resources Corporation Announces Results for the Nine Month Period Ended September 30, 2006

CALGARY, ALBERTA--(CCNMatthews - Nov. 29, 2006) - LONGVIEW RESOURCES CORPORATION (TSX VENTURE:LRC) ("Long View", the "Company" or the "Corporation"), is pleased to announce its financial results for the nine-month period ended September 30, 2006. Company net production averaged 237 barrels of oil equivalent per day during the nine-month period ending September 30, 2006, as compared with 100 barrels of oil equivalent per day for the same period in 2005. 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.

Year-To-Date September 30 2006 Achievements

- Two Bakken horizontal wells were drilled at Viewfield, resulting in two gross (0.8 net based on Long View after payout working interest) producing horizontal Bakken wells.

- Achieved a 137% increase in average production versus the first half of 2005.

- Generated in 154% increase in operating cash netback (revenues less royalties less operating expenses) versus the same period in 2005

- Decreased operating expenses per boe by approximately 5% in the first nine months of 2006 versus the same period in 2005

- Decreased general and administrative expenses per boe by 32% in the first nine months of 2006 versus the same period in 2005

The following table presents highlights for the first nine months 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 nine months ended September 30, 2006 and the Management Discussion and Analysis for each period respectively.

Nine Months Ended
Operating & Financial
Highlights September 30, 2006 September 30, 2005

Average - boepd 237 100
Average price per boepd $ 65.01 $ 60.93
Revenue $ 4,134,421 $ 1,661,239
Operating cash netback (1) $ 2,287,037 $ 899,479
Net income after taxes $ 580,844 $ 562,214
Cash flow from operations $ 329,900 $ 589,266
Cash flow from operations
(excluding non-cash items) $ 1,510,865 $ 732,540
Capital expenditures $ 3,028,078 $ 4,699,898
Working capital $ (142,800) $ (257,639)
Bank debt $ - $ -
Shareholders' equity $ 11,482,039 $ 10,129,139

(1) "Operating cash netback" means revenues less royalties less operating

Operational Review

For the nine month period ended September 30, 2006, working interest production has averaged 237 barrels of oil equivalent per day, versus 100 barrels of oil equivalent during the same period in 2005, representing an increase of 137 percent.

The Company experienced a combination of adverse weather, wet lease and road conditions, and road bans during the latter part of the first half of 2006. As trucked production operations were restored to full capacity over the summer months, it became apparent that production from the Ingoldsby property was being negatively impacted by lagging acquifer pressure support. Further drilling projects were placed on hold until a technical review of the Ingoldsby property was completed. Thereafter, the Company did not engage in drilling operations until the first of the two Viewfield Bakken horizontal wells were drilled in September, 2006. Initial results from the Bakken at Viewfield have been very encouraging and the Company is optimistic that the Viewfield core acreage will prove to have the capacity for a number of Bakken horizontal wells as the play moves closer to this acreage.

After the technical review of the Ingoldsby property, a decision was taken to implement a pressure maintenance project through injection of water into an existing well. Long View's application for a pressure maintenance project was submitted to Saskatchewan Industry and Resources ("SIR"). Approval for the project was significantly delayed until after the third quarter of 2006 as a result of a delay in obtaining consent from one mineral owner. At the time of writing, the Company awaits the impending expiry of the public notification period imposed by SIR for the project, and it is now anticipated that approval for the project will be granted prior to the end of November 2006. Once approval has been granted by SIR, the Company anticipates undertaking operations to convert one of the three producing wells at Ingoldsby to an injector.


Subsequent to the end of the third quarter of 2006, drilling commenced on a vertical exploration well at the Company's property at Gainsborough in southeastern Saskatchewan. The well will target deeper horizons based on seismic, and the shallow Mississippian zones as secondary targets. If successful, it is anticipated that the Gainsborough well could be on production prior to year-end 2006.

Long View has undertaken a review all of undeveloped lands for exploration and development potential, and is confident that there is an excellent inventory of drilling locations to move forward with as financing permits. Long View has received several expressions of interest by a number of industry partners in farming into the Company's undeveloped lands, and this is viewed as a favorable development. As a result, the Company intends to organize a five-well drilling program, with a farmin partner taking up to two-thirds of the capital exposure on a promoted basis, in order to accelerate the addition of production volumes during the latter part of 2006 and the first quarter of 2007.

Although our year-to-date results for 2006 have been disappointing, management remains enthusiastic about the growth prospects for Long View, and we thank our board of directors and our shareholders for their patience. We remain committed to building value in Long View through the drill bit, and through acquisition and/or corporate activities which can provide long-term value accretion for shareholders.


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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