Paris Energy Inc.
TSX VENTURE : PI

April 29, 2008 08:30 ET

Paris Announces Change of Management and Financial and Operating Results for the First Three Months of 2008

CALGARY, ALBERTA--(Marketwire - April 29, 2008) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Paris Energy Inc. ("Paris" or the "Company")(TSX VENTURE:PI) is pleased to announce its financial and operating results for the first three months ended February 29, 2008.

Financial

During the first quarter of 2008 the Company completed and began to tie in wells drilled late in the fourth quarter of 2007. In the first quarter of 2008 the Company had two wells on production at Rimbey and Killam. Revenues, with the assistance of strong commodity prices, have been increasing monthly. Revenues for the first quarter increased to $28,642 from $15,416 in the fourth quarter of 2007. Expenditures on oil and natural gas prospects during the first quarter of 2008 totaled $832,129 and were primarily tie-in and equipment costs at Killam. The Company ended the first quarter of 2008 with working capital of $654,389 compared to a year end working capital of $1,559,837.



Financial Highlights

Three months ended February 29
(unaudited) 2008 2007
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Financial
Total revenue $ 50,872 $ 411,779
Cash flow from (used for) operations (77,238) (49,627)
per share, basic and diluted (0.01) -
Net income (loss) (91,438) 425,175
per share, basic and diluted (0.01) 0.04
Capital expenditures 832,129 346,387
Working capital surplus (deficiency) $ 654,389 $ (1,216,357)
Total shares outstanding 9,552,347 9,552,347
Operations
Production
Natural gas (Mcf/d) 17 490
Crude oil (Bbl/d) 2 13
NGL (Bbl/d) 1 1
BOEd (6 Mcf = 1 Bbl) 5 96
Product Prices
Natural gas ($/Mcf) $ 7.61 $ 7.11
Oil ($/Bbl) $ 88.26 $ 58.52
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Exploration and Development Activities

Paris holds an undivided 71.43% working interest in 600 acres in Killam, Alberta, and in March 2008 has tied-in a producing gas and oil well in February, 2008. The Company owns a non-convertible royalty on a producing well on the remaining 40 acres of the section. This well was producing both oil and gas but is currently shut-in. Discussions with the operator of this well are taking place at the present time and when the spacing unit issues are resolved the Company may drill another well for gas and/or oil production in fiscal 2008.

In Enchant, Paris drilled and completed the 7-30 well in December, 2007. During the first quarter, the Company equipped the well and placed this natural gas well on production in March 2008. Paris has reviewed seismic over the land and expects to select a second natural gas location based on seismic and information from the first well.

In Craigmyle, the first well at 16-2 was drilled in fiscal 2007 and completed during the first quarter of 2008. It is expected to be on production in May 2008. The Company subsequently acquired five sections of land in the area at the March land sale. Paris plans to shoot and/or acquire seismic over the lands before drilling additional wells in the area.

Management Changes

Paris also wishes to announce that John G.F. McLeod has been appointed President and Chief Executive Officer of the Company. Mr. McLeod is a professional engineer and has over 30 years of technical and management experience in the upstream oil and gas industry, both domestic and international. John holds a BSc in Mechanical Engineering from the University of New Brunswick and is a member of APEGGA.

The Board is confident that Mr. McLeod has the experience, technical ability and skills required to grow Paris in these challenging times for an emerging company.

The Board has accepted the resignation of M. Elizabeth Burke-Gaffney as President and as a Director of the Company, and Clifford Jeffrey as Vice-President of Exploration and a Director of Paris. Mr. Jeffrey has agreed to advise the Company as a consultant in the future.

Outlook

The Company is undertaking a private placement financing of up to 10,000,000 shares at $0.20 per share for gross proceeds of $2.0 million. This funding, if successful, will allow the Company to carry out its 2008 exploration and development program. The Company anticipates a positive working capital position at the end of its fiscal 2008 period.

With increasing commodity prices, increased Company production and the funds from the private placement the Company is well positioned financially to take advantage of opportunities as they are identified. Competition for undeveloped land has decreased such that Paris has been successful in assembling over 12,000 net acres on which the Company has an inventory of prospects in varying stages of development. Crude oil prices have been buoyed by global demand and political unrest and natural gas prices seem poised to follow this trend. Despite the challenges of a small producer, we remain optimistic that market conditions will reward hard work and persistence.

We wish to thank our shareholders, our employees and consultant for their continuing support. We look forward to reporting positive news as the Company's level of activity increases during the remainder of 2008.

Forward Looking Statements

Certain statements contained in this press release constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe" and "confident" and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements.

Paris believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon. These statements speak only as of the date of this press release. Paris undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities laws.

Further information relating to Paris may be found on www.sedar.com

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

Contact Information

  • Paris Energy Inc.
    John G. F. McLeod
    President
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    2000, 633 - Sixth Avenue S.W.
    Calgary, Alberta T2P 3M3