Paris Energy Inc.
TSX VENTURE : PI

February 29, 2008 08:00 ET

Paris Announces Financial and Operating Results for Year Ended November 30, 2007

CALGARY, ALBERTA--(Marketwire - Feb. 29, 2008) - Paris Energy Inc. (TSX VENTURE:PI) announces its financial and operating results for the year ended November 30, 2007.

Financial

For the year ended November 30, 2007 cash flow deficiency from operations was $451,526 as oil and natural gas revenues were minimal. Capital expenditures for the year were $2,101,414 of which $1,650,793 was spent in the second half of the year on new prospects. As at November 30, 2007, the Company had a positive working capital position of $1,559,837 most of which is committed to funding the remaining capital requirements to bring the Craigmyle, Enchant and Killam wells on production during the first half of fiscal 2008.



Highlights

Year ended November 30, 2007 2006
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Financial:
Total Revenue $ 787,091 $ 2,040,746
Cash flow deficiency from operations (451,526) 194,072
Per share, basic & diluted (0.05) 0.02
Net loss (155,916) (10,259,084)
Per share, basic & diluted (0.02) (1.15)
Capital expenditures 2,101,414 4,127,111
Working capital 1,559,837 (820,343)
Total shares outstanding 9,552,347 9,552,347


The Company also wishes to announce it has filed the following documents under National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities as at November 30, 2007:

1. Form 51-101F1 - Statement of Reserves Data and Other Oil and Gas Information;

2. Form 51-101F2 - Report on Reserves Data by Independent Qualified Reserves Evaluator, and;

3. Form 51-101F3 - Report of Management and Directors on Oil and Gas Disclosure.

SEDAR Filings

The Company's financial statements and MD&A along with the above noted National Instrument documents may be obtained at www.sedar.com.

READER ADVISORY

Readers should be aware that substantially all of the oil and natural gas assets of the Company have been sold as well as the appointment of new Management, therefore, historical information has limited value in assessing future performance.

Boes may be misleading, particularly if used in isolation. A boe conversion ratio of six mcf to one 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.

Statements in this news release contain forward-looking information including expectations of future production, plans for and results of exploration and development activities and other operational developments and components of cash flow and earnings. Readers are cautioned that assumptions used in the preparation of such information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. These risks include, but are not limited to; the risks associated with the oil and gas industry, commodity prices, and exchange rate changes. Industry related risks include, but are not limited to; operational risks in exploration, development and production of oil and gas and production risks associated with dependence on third party owned and operated production facilities, availability of skilled personnel and services, failure to obtain industry partner, regulatory and other third party consents and approvals, delays or changes in plans, risks associated with the uncertainty of reserve estimates, health and safety risks and the uncertainty of estimates and projections of reserves, production, costs and expenses. The risks outlined above should not be construed as exhaustive. Readers are cautioned not to place undue reliance on this forward-looking information. The Company undertakes no obligation to update or revise any forward-looking statements except as required by applicable securities laws.

Readers are further cautioned that the preparation of financial statements in accordance with Canadian generally accepted accounting principles ("GAAP") requires management to make certain judgments and estimates that affect the reported amounts of assets, liabilities, revenues and expenses. These estimates may change, having either a negative or positive effect on net income as further information becomes available, and as the economic environment changes.

The terms "cash flow from operations", "cash flow" and "cash flow per share" are not recognized measures under GAAP. Management believes that in addition to net income, cash flow is a useful supplemental measure as it provides an indication of the results generated by Paris' principal business activities before the consideration of how these activities are financed or how the results are taxed. Investors are cautioned, however, that this measure should not be construed as an alternative to net income determined in accordance with GAAP as an indication of the Company's performance. The Company's method of calculating cash flow may differ from other companies, especially those in other industries and accordingly may not be comparable to measures used by other companies. The Company calculates cash from operations as cash from operating activities before the change in non-cash working capital related to operating activities.

Contact Information

  • Paris Energy Inc.
    M. Elizabeth Burke-Gaffney
    President
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    Robert L. (Locke) McPherson
    Chief Executive Officer
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    Robert W. Lamond
    Chairman
    (403) 264-5545
    (403) 261-4072 (FAX)
    or
    Paris Energy Inc.
    2000, 633 - Sixth Avenue S.W.
    Calgary, Alberta T2P 2Y5