Rockyview Energy Inc.
TSX : RVE

Rockyview Energy Inc.

November 09, 2006 07:00 ET

Rockyview Energy Releases Its Operating and Financial Results for the Third Quarter 2006

CALGARY, ALBERTA--(CCNMatthews - Nov. 9, 2006) - Rockyview Energy Inc. (TSX:RVE) Rockyview Energy Inc. ("Rockyview" or the "Company") is pleased to present its operating and financial results for the three and nine month period ended September 30, 2006. MESSAGE TO SHAREHOLDERS As a result of its drilling, compression and tie-in activities to the end of the third quarter of 2006, Rockyview added in excess of 4.7 million cubic feet ("mmcf") or 794 barrels of oil equivalent ("boe") per day of production by the end of the third quarter, with another 425 boe per day tested and awaiting tie-in. Entering the fourth quarter, production stood at approximately 2,800 boe per day, of which 96% comprised natural gas. This represented an increase of over 30% from second quarter average production. Specifically these increases came from the following core areas: - Central Alberta -- Installed 2,600 horsepower of compression facilities and tied-in 29 (25 net) wells, resulting in net incremental volumes of 3.6 mmcf (600 boe) per day. -- Successfully completed a 100% working interest natural gas well in Central Alberta, resulting in a new discovery that has demonstrated a production capability of 2.1 mmcf (350 boe) per day. - Western Alberta -- Successfully tied-in a 62.5% working interest Jurassic gas well at Thunder that is currently producing 700 thousand cubic feet ("mcf") per day, and showed up-hole potential in the Mannville formation. Net production to Rockyview is 437 mcf (73 boe) per day. - Peace River Arch -- Successfully drilled and tied-in a 28% working interest Triassic gas well in the Peace River Arch, resulting in a new natural gas discovery with initial production of 2.6 mmcf per day. Net production to Rockyview was 728 mcf (121 boe) per day. -- Successfully completed two Triassic oil wells (50% and 20% working interests) that have tested at gross rates of 100 boe/d and 130 boe/d, respectively. This new pool discovery has numerous potential development locations. - Drilling Inventory & Farm-Outs -- Identified in excess of 100 (71 net) drilling locations on its lands, providing a 2-3 year drilling inventory. In addition, Rockyview has up to 50 (35 net) drilling locations for Horseshoe Canyon CBM on freehold lands, as well as 55 net undeveloped sections prospective for Upper Mannville CBM locations. -- Entered into farm-out agreements with industry partners that will see a minimum of 5 wells drilled on non-strategic lands. Central Alberta Compression Rockyview commissioned two compressors in its Central Alberta core area during the third quarter. These projects were undertaken as part of a significant Horseshoe Canyon coalbed methane ("CBM") drilling program in late 2005 that saw the Company drill a total of 39 CBM wells. All wells drilled in 2005 and 2006 have now been put on production. At Wood River, Rockyview has completed the construction and installation of a 1,500 horsepower (50% working interest) electrically-powered compressor and dehydration station at 10 - 30 - 42- 23W4. The installation of the 10 - 30 facility not only has helped to optimize production from existing wells that were producing against higher line pressures, but also reduced the load on other compressors at Wood River, thereby providing incremental capacity to accommodate Rockyview's future plans to drill in excess of 30 shallow CBM wells. Rockyview has also increased its midstream business at Wood River, processing an additional 2.0 mmcf per day of third party gas through its facilities. At Bittern, the Company completed the construction and installation of a 1,100 horsepower (100% working interest) electrically-powered compressor and de-hydration station at 4 - 10 - 46 - 22W4. Seventeen wells were tied-in to the facility, producing approximately 2.8 mmcf per day. Further development and extension of the field is expected in 2007. Rockyview now has sufficient capacity to enable it to execute future Horseshoe Canyon CBM programs at significantly reduced capital costs, given that the infrastructure already exists. Natural Gas Discovery Rockyview successfully completed a 100% interest dual zone New Pool Wildcat at Watelet, in Central Alberta. The well location was based on a seismically defined lower Mannville prospect and encountered natural gas in both the Ellerslie and Glauconitic zones. The Glauconitic was flow-tested for 120 hours at an average rate of 1.0 mmcf per day at a final flowing wellhead pressure of 7,569 kPa. The sand face absolute open flow ("AOF") potential for this zone was 2.4 mmcf per day. A total of 5.0 mmcf of gas was withdrawn from the reservoir without showing evidence of depletion. A high permeability, high porosity reservoir with 2.4 metres of net pay was indicated. The Ellerslie was flow-tested for a 48-hour period at a restricted rate of 1.1 mmcf per day at a final flowing wellhead pressure of 6,590 kPa. The sand face AOF for this zone was 3.3 mmcf per day. Analysis of the well test showed no depletion and the presence of a high permeability reservoir. Net pay is estimated at 1.5 metres in this zone. Combined volumetric reserves for these zones are estimated by management to be approximately 3 billion cubic feet ("bcf") per section. Rockyview has secured transportation and processing into a third-party system and is negotiating the capacity to be made available. The Company has also acquired additional seismic data in the area and has identified two additional locations. Western Alberta At Thunder, in the Western Alberta core area, Rockyview successfully completed a 62.5% interest well for 3 meters of Nordegg sweet gas pay. The location was based on a recently completed 3-dimensional seismic program. Well test analysis indicates permeability in excess of 200 millidarcies, no pressure depletion, and no apparent reservoir boundaries. The well was tied-in, and is currently producing 700 mcf per day with no water. Volumetric reserves are estimated by management to be approximately 2 bcf per section. Additional net pay is also indicated on logs in the Mannville formation. Net production to Rockyview is 437 mcf (73 boe) per day. Based on the 3-D seismic data and the results of this well, potential for a multi-well follow-up drilling program on high-interest Rockyview lands has been confirmed. Rockyview also completed its drilling commitment pursuant to a farm-in on 36,000 net acres in the Thunder area (news release January 19, 2006). To date in total, the Company has drilled four (1.65 net) wells and earned 8 (5.0 net) sections of land. All wells are in various stages of completion. Peace River Arch In the Peace River Arch, the Company successfully participated in the drilling and tie-in of a 28% interest Triassic gas well, resulting in a new natural gas discovery that produced initially at a restricted rate of 2.6 mmcf per day. The well encountered 4 metres of sweet gas pay and flowed at 6.4 mmcf per day at a pressure of 4,800 kPa upon perforation. Initial pressure and flow data indicate no depletion and a high permeability reservoir. Additional follow-up locations are being evaluated. Current gross production is approximately 1.0 mmcf per day. The Company also successfully completed two Triassic oil wells (50% and 20% working interests), resulting in a new pool discovery with infill and step-out potential. These wells flowed oil with associated gas at combined rates of approximately 100 boe/d and 130 boe/d, respectively. Tie-in work has commenced and ultimate production rates and on-stream dates will depend on facility modifications. Drilling Inventory & Farm-Outs Rockyview estimates that it has a current drilling inventory of more than 150 wells, targeting multiple horizons which will be drilled over the next 2-3 years. In addition, the Company has entered into several farm-out agreements with industry partners that will see a minimum of 5 wells with continuing options for an additional 12 wells to be drilled on non-strategic lands, at no expense to Rockyview. Steve Cloutier, President and Chief Executive Officer

FINANCIAL REVIEW & OPERATING HIGHLIGHTS

                                 Three         Nine       Three
                                months       months      months  Period (1)
                                 ended        ended       ended      ended
                                Sep-30       Sep-30      Sep-30     Sep-30
                                  2006         2006        2005       2005
FINANCIAL ($)
Revenue before royalties     7,681,428   23,259,407   5,711,873  6,202,088
Net income (loss)           (1,157,630)  (1,009,939)    742,413    711,076
 Per share - basic and
  diluted                        (0.06)       (0.05)       0.06       0.10

Funds flow from operations   3,432,373   10,638,818   3,225,343  3,436,476
 Per share - basic                0.18         0.55        0.27       0.48
 Per share - diluted              0.18         0.54        0.27       0.48
Total assets                            160,881,471             55,550,814
Working capital
 (deficiency)                            (2,595,030)             7,799,898
Bank loan                                37,000,000                      -
Capital asset acquisitions,
 net of dispositions                 -   67,279,786           - 39,864,559
Capital expenditures        11,884,193   32,017,804   2,204,072  2,230,393

Market
Shares outstanding
 End of period              19,494,378   19,494,378  12,068,699 12,068,699
 Weighted average - basic   19,494,378   19,193,020  12,068,699  7,086,852
 Weighted average - diluted 19,494,378   19,569,612  12,152,698  7,170,851

OPERATIONS
Average daily production
Natural gas (mcf/d)             12,775       11,529       5,719      5,734
Light crude oil (bbl/d)             48           56          42         42
NGLs (bbl/d)                        68           66          34         35
Total (boe/d)                    2,245        2,044       1,029      1,032

Average wellhead prices
Natural gas ($/mcf)               5.84         6.58        9.62       9.37
Light crude oil ($/bbl)          63.65        62.79       68.12      67.96
NGLs ($/bbl)                     60.82        60.13       58.78      58.21
Average ($/boe)                  36.43        40.80       58.15      56.78

Operating netback ($/boe)        19.94        23.45       40.21      39.09

(1) Period from June 21 to September 30, 2005.

Management's Discussion and Analysis This management, discussion and analysis ("MD&A") for Rockyview Energy Inc. ("Rockyview" or the "Company") was prepared as of November 3, 2006 and should be read in conjunction with the unaudited interim consolidated financial statements for the three and nine months ended September 30, 2006 and the December 31, 2005 audited annual financial statements and related note disclosures. The December 31, 2005 audited financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). Basis of Presentation - The Company commenced operations on June 21, 2005 following a Plan of Arrangement. Accordingly, the comparatives reflect operations for the quarter ended September 30, 2005, and the 102 day period from June 21 to September 30, 2005. Non-GAAP Measurements - The MD&A contains the term "funds flow from operations", which should not be considered an alternative to, or more meaningful than, cash provided by operating activities as determined in accordance with Canadian generally accepted accounting principles, as an indicator of the Company's performance. Rockyview's determination of funds flow from operations may not be particularly comparable to that reported by other companies, especially those in other industries. The reconciliation between net income and funds flow from operations can be found in the statement of cash flows in the unaudited consolidated financial statements. The Company also presents funds flow from operations per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share. The Company will also use operating netback as an indicator of operating performance. Operating netback is calculated on a per boe basis taking the sales price and deducting royalties, operating and transportation expenses. BOE Presentation - The term "barrels of oil equivalent" ("BOE") may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf:1 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. All BOE conversions in the report are derived by converting gas to oil in the ratio of 6 thousand cubic feet of gas to one barrel of oil. Forward-Looking Statements - 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, delays or changes in plans, risks associated with the uncertainty of reserves estimates, and estimates of production, costs and expenses. The risks outlined above should not be construed as exhaustive. The reader is 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. PRODUCTION The following is a summary of daily production for the periods indicated:


                                                              Period from
                                                              June 21, to
                            Q3      Q2      Q1     Q4     Q3      June 30,
                          2006    2006    2006   2005   2005         2005
--------------------------------------------------------------------------
Crude oil (bbl/d)           48      62      58     46     42           43
NGLs (bbl/d)                68      67      63     25     34           40
Natural gas (mcf/d)     12,775  11,761  10,022  5,682  5,719        5,874
--------------------------------------------------------------------------
Total (boe/d)            2,245   2,089   1,791  1,018  1,029        1,061
--------------------------------------------------------------------------
--------------------------------------------------------------------------

Production split
--------------------------------------------------------------------------
Crude oil and NGLs           5%      6%      7%     7%     7%           8%
Natural gas                 95%     94%     93%    93%    93%          92%
--------------------------------------------------------------------------

On January 11, 2006, the Company closed the acquisition of Espoir Exploration Corp. ("Espoir") and has included its operating results from that date. The Espoir acquisition added approximately 935 boe/d of production at closing. During the third quarter, the Company commissioned two compressors in its Central Alberta core area. These projects were undertaken as part of a significant Horseshoe Canyon CBM (coalbed methane) drilling program in late 2005 that saw Rockyview drill a total 39 CBM wells. At Wood River, Rockyview completed the construction and installation of a 1,500 horsepower electrically powered compressor and dehydration station. The installation of this compression optimizes production from existing wells, while reducing the load factors on compressors at Wood River. At Bittern, the Company completed the construction and installation of a 1,100 horsepower electrically powered compressor and dehydration station. Seventeen wells were tied in to the facility by the end of the third quarter, increasing production by approximately 2,800 mcf per day. Production for the third quarter averaged 2,245 boe per day, a 7% increase from the prior quarter and a 118% increase from the same period in 2005. The Company's production is now weighted 5% crude oil and NGLs and 95% natural gas.

COMMODITY PRICES
                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
Average Benchmark Prices      2006          2006         2005         2005
---------------------------------------------------------------------------
Natural gas
 - AECO daily spot($/mcf)     5.64          7.06         9.30         7.36
Crude oil - WTI (US$/bbl)    70.48         68.35        63.19        53.17
Crude oil 
 - Edmonton Par (Cdn$/bbl)   79.09         75.66        79.06        65.79
Exchange rate (US$/C$)      0.8918        0.8840       0.8320       0.8039


Average Realized Prices
--------------------------------------------------------------------------
Natural gas - ($/mcf)         5.84          6.58         9.62        7.20
Crude oil - ($/bbl)          63.65         62.79        68.12       66.50
NGLs - ($/bbl)               60.82         60.13        58.78       53.69

One of the warmest winters on record in North America resulted in natural gas storage levels approximately 60% higher than the 5 year average. The lack of weather driven demand during the 2005/2006 winter months resulted in a lack of support for natural gas prices throughout the continent. As a result, we saw natural gas prices fall to levels not experienced since 2004. The Canadian gas prices from which Rockyview's production is indexed suffered more than the US based NYMEX gas price, as Canadian prices at AECO were subject to an ever increasing basis discount as physical demand in Alberta lagged behind that of NYMEX gas. The average natural gas price realized during the third quarter of 2006 was 39% lower than the comparative period in 2005 and 7% lower than the previous quarter. The Company expects natural gas prices to strengthen heading into winter 2006/2007. For the three months ended September 30, 2006, the West Texas Intermediate ("WTI") oil reference price averaged US$70.48 (2005 - US$68.35) and the $US/$Cdn. exchange rate averaged 1.1213 (Cdn.$0.8918).

PETROLEUM AND NATURAL GAS SALES

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Natural gas            $ 6,862,056  $ 20,716,154  $ 5,059,142  $ 5,481,908
Crude oil                  281,016       957,922      260,118      288,562
NGLs                       381,737     1,086,216      185,133      206,410
Royalty and other
 income                    156,619       499,115      207,480      225,208
---------------------------------------------------------------------------
Gross oil and gas
 revenue               $ 7,681,428    23,259,407  $ 5,711,873    6,202,088
Per boe                $     37.19  $      41.69  $     60.34  $     58.92
---------------------------------------------------------------------------

Revenues of $7.68 million ($37.19 per boe) for the three months ended September 30, 2006 (the "quarter") were unchanged from the previous quarter of $7.62 million ($40.10 per boe). A 7% increase in production volumes was offset by a 7% decrease in average price realizations. While production volumes increased 118% from the comparable quarter last year due to the acquisition of Espoir and drilling successes, natural gas prices declined 39% over the same period, resulting in a 34% increase in revenues from the third quarter of 2005. At September 30, 2006, the Company had no commodity hedging contracts in place. In the fourth quarter, Rockyview entered a physical natural gas commodity contract for calendar 2007 for 1,000 GJ per day at a fixed price of C$7.50 per GJ.

ROYALTIES
                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Crown royalties        $ 1,004,165   $ 3,559,970  $   765,177  $   827,751
Freehold royalties         128,599       337,798      153,030      168,720
Overriding royalties       187,824       701,638      164,570      181,761
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Total royalties        $ 1,320,588   $ 4,599,406  $ 1,082,777  $ 1,178,232
---------------------------------------------------------------------------
% of oil and gas
 revenue                      17.2%         19.8%        19.0%        19.0%
Per boe                $      6.39   $      8.24  $     11.44  $     11.19
---------------------------------------------------------------------------

Royalties for the third quarter of 2006 averaged 17.2% of oil and gas revenue, down from 18.5% in the previous quarter and reflects lower natural gas reference pricing and the impact of bringing on lower royalty rate shallow gas production in the quarter.

OPERATING EXPENSES
                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Operating expense      $ 2,018,128   $ 4,951,893    $ 691,089    $ 766,343
Per boe                $      9.77   $      8.88    $    7.30    $    7.28
---------------------------------------------------------------------------

Operating expenses totalled $2,018,128 for the third quarter of 2006, or $9.77 per boe, a 19% increase from the $8.22 per boe in the previous quarter, and a 34% increase from the same period in 2005. This is partially due the Company being charged higher gathering, compression and processing fees from facility owners at one of the non-operated Espoir properties. During the third quarter, the Company recorded $79,500 ($0.38 per boe) of such operating costs relating to prior periods. Rockyview expects to generate its own processing and compression fee income from third party users, following the commissioning of new compression facilities at the end of the third quarter.

TRANSPORTATION COSTS

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Transportation expense   $ 223,511     $ 627,439    $ 131,210    $ 143,291
Per boe                  $    1.08     $    1.12    $    1.39    $    1.36
---------------------------------------------------------------------------

Transportation costs for the quarter ended September 30, 2006 were $223,511 or $1.08 per boe, essentially unchanged from $1.03 per boe during the previous quarter and reflect lower pipeline tariffs on the former Espoir properties.


OPERATING NETBACK
                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Revenues                   $ 37.19       $ 41.69     $  60.34     $  58.92
Royalties                    (6.39)        (8.24)      (11.44)      (11.19)
Operating expense            (9.77)        (8.88)       (7.30)       (7.28)
Transportation               (1.08)        (1.12)       (1.39)       (1.36)
---------------------------------------------------------------------------
Operating netback          $ 19.95       $ 23.45     $  40.21     $  39.09
---------------------------------------------------------------------------

The operating netback for the third quarter of 2006 was $19.95, 15% lower than the previous quarter, and 50% lower than the comparative period in 2005. The lower netback reflected the decrease in natural gas prices.

The operating netback by product is as follows:

Conventional natural gas     Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
($ per mcf)                   2006          2006         2005         2005
---------------------------------------------------------------------------
Revenues                   $  5.97       $  6.73      $  9.63      $  9.38
Royalties                    (1.02)        (1.41)       (1.95)       (1.91)
Operating expense            (1.89)        (1.67)       (1.22)       (1.23)
Transportation               (0.19)        (0.20)       (0.25)       (0.24)
---------------------------------------------------------------------------
Operating netback          $  2.87       $  3.45      $  6.21      $  6.00
---------------------------------------------------------------------------
---------------------------------------------------------------------------


Coal bed methane gas         Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
($ per mcf)                   2006          2006         2005         2005
---------------------------------------------------------------------------
Revenues                   $  5.45       $  5.95      $  9.54      $  9.32
Royalties                    (0.99)        (0.99)       (1.78)       (1.73)
Operating expense            (0.97)        (0.77)       (0.72)       (0.72)
Transportation               (0.19)        (0.19)       (0.25)       (0.25)
---------------------------------------------------------------------------
Operating netback          $  3.30       $  4.00      $  6.79      $  6.62
---------------------------------------------------------------------------
---------------------------------------------------------------------------


GENERAL AND ADMINISTRATIVE EXPENSES

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
General and
 administrative
 - gross               $ 1,078,177  $  3,545,942   $  526,446   $  588,936
Capital and operating
 recoveries               (397,925)   (1,092,430)    (117,946)    (117,946)
Capitalized               (258,151)     (856,369)    (108,937)    (108,937)
---------------------------------------------------------------------------
General and
 administrative - net  $   422,101  $  1,597,143   $  299,563   $  362,053
---------------------------------------------------------------------------
Per boe                $      2.04  $       2.86   $     3.16   $     3.44
---------------------------------------------------------------------------

Gross general and administrative expenses for the three months ended September 30, 2006 totalled $1,078,177, 105% higher than the same period in the previous year, and reflected the hiring of additional staff following the Espoir acquisition and higher compensation costs. The Company capitalized $397,925 of general and administrative costs associated with its exploration and development program during the third quarter, reflecting an increasing focus on new conventional exploration and development projects.


INTEREST EXPENSE
                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Interest expense         $ 456,729   $ 1,025,314   $        -    $       -
Per boe                  $    2.21   $      1.84   $        -    $       -
---------------------------------------------------------------------------

Prior to the acquisition of Espoir in January 2006, the Company had not drawn on its bank line. The acquisition of Espoir was partially financed with $8.32 million in cash and the assumption of debt and working capital deficiency totalling $12.73 million. The balance of the bank loan at September 30, 2006 was $37.00 million. STOCK-BASED COMPENSATION The Company accounts for stock-based compensation using the fair value method for stock options. Under the fair value method, the Black-Scholes option pricing model was used to calculate the quarterly expense and recorded in the income statement over the vesting period of the options.

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Compensation expense     $ 256,981     $ 694,760    $ 136,413    $ 151,240
Per boe                  $    1.24     $    1.25    $    1.44    $    1.44
---------------------------------------------------------------------------

For the quarter ended September 30, 2006, the Company had stock-based compensation of $256,981, or $1.24 per boe, versus $225,299, or $1.19 per boe in the previous quarter, the increase reflects stock options granted to a new employee during the quarter. The amount remaining for future recognition over the vesting period of the options is $2,251,750. DEPLETION, DEPRECIATION AND ACCRETION

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Depletion and
 depreciation          $ 4,751,101  $ 12,537,318  $ 2,127,204  $ 2,397,030
Accretion                   43,477       122,684       16,210       17,956
---------------------------------------------------------------------------
                       $ 4,794,578  $ 12,660,002  $ 2,143,414  $ 2,414,986
---------------------------------------------------------------------------

Depletion and depreciation for the quarter amounted to $4,751,101 ($23.00 per boe), compared to $21.99 per boe in the previous quarter and reflected the cost associated with the Espoir acquisition. The accretion of the asset retirement obligation for the quarter totalled $43,477, ($0.21 per boe), versus $0.22 per boe in the previous quarter. INCOME TAXES The future income tax liability of $9.28 million reflected the difference between the book value and the tax value of the Company's assets. At September 30, 2006, the Company had tax pools of approximately $103.8 million that are available to shelter future taxable income. FUNDS FLOW AND NET INCOME Funds flow for the quarter ended September 30, 2006 was $3,432,373 or $0.18 per share basic and diluted, versus $0.17 per share basic and diluted in the previous quarter. The funds flow for the quarter reflects lower netbacks as a result of lower AECO spot gas prices during the period, offset by higher production volumes. The net loss for the third quarter of 2006 was $1,157,630, or $0.06 per share basic and diluted. SUMMARY OF QUARTERLY RESULTS The following table highlights the Company's performance since inception on a quarterly basis:


                                                      '2006
                                 ------------------------------------------
                                          Q3             Q2             Q1
---------------------------------------------------------------------------
Revenue                          $ 7,681,428    $ 7,623,900    $ 7,954,079
Net income/(loss)
 Per share - basic and diluted         (0.06)          0.01          (0.01)
Funds flow from operations
 Per share - basic                      0.18           0.17           0.21
 Per share - diluted                    0.18           0.17           0.20
Total assets                     160,881,471    151,891,240    145,343,833
Bank loan                         37,000,000     30,000,000     20,000,000
---------------------------------------------------------------------------


                                                       2005
                                 ------------------------------------------
                                           Q4            Q3             Q2
---------------------------------------------------------------------------
Revenue                           $ 6,993,066   $ 5,711,873      $ 490,215
Net income/(loss)
 Per share - basic and diluted           0.11          0.06          (0.02)
Funds flow from operations
 Per share - basic                       0.33          0.27           0.16
 Per share - diluted                     0.33          0.27           0.13
Total assets                       63,243,557    55,550,814     50,720,768
Bank loan                                   -             -              -
---------------------------------------------------------------------------

Revenues increased commensurate with production volumes and a strong commodity price environment, until the decline in natural gas prices during the first quarter of 2006 that has continued through the second and third quarters of 2006. The increase in revenues in the first quarter of 2006 was due to the production volumes added from the Espoir acquisition. Funds flow from operations steadily increased until the decline in natural gas prices in 2006.


CAPITAL EXPENDITURES

Drilling Activity                     2006                         2005
---------------------------------------------------------------------------
                         Q3            Q2            Q1             Q3
---------------------------------------------------------------------------
                   Gross   Net   Gross   Net   Gross   Net   Gross    Net
---------------------------------------------------------------------------
Conventional gas     3.0   0.7    12.0  11.0     1.0   0.6       -      -
CBM                    -     -     6.0   4.2     6.0   3.5    10.0    6.1
Dry and abandoned      -     -       -     -       -     -       -      -
---------------------------------------------------------------------------
Total                3.0   0.7    18.0  15.2     7.0   4.1    10.0    6.1
---------------------------------------------------------------------------
Success rate               100%          100%          100%           100%
---------------------------------------------------------------------------

In the third quarter of 2006, the Company drilled 3 (0.7 net) gas wells. At Thunder, the Company drilled and cased 2 (0.45 net) gas wells pursuant to a farm-in and drilled and tied-in a Gething gas well (0.28) in the Peace River Arch. This well was producing 700 mcf per day net to Rockyview when placed on production in September. The Thunder wells will be tested for production rates in the fourth quarter of 2006. The Company's main focus during the third quarter concentrated on installing 2,600 horsepower of compression at Bittern and Wood River, and equipping and placing on production the 55 (39 net) wells drilled in 2005. The additional compression was commissioned in September and resulted in incremental net volumes of 3,600 mcf per day. Rockyview now has sufficient capacity to enable it to execute future Horseshoe Canyon CBM programs at significantly reduced capital costs, given that the infrastructure already exists.

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Corporate acquisition  $         -   $67,279,786  $         -  $         -
Property acquisitions            -             -            -   39,864,559
Property dispositions            -    (2,031,222)           -            -
Land and lease             466,585     2,952,624      160,252      171,470
Geological and
 geophysical                95,598       236,367       42,402       42,402
Drilling and
 completions             3,330,348    12,077,749    1,224,547    1,224,547
Equipment and
 facilities              7,725,521    15,832,966      452,330      467,433
Capitalized
 administrative            258,151       856,369      108,937      108,937
Office                       7,991        61,730      215,604      215,604
---------------------------------------------------------------------------
Net capital
 expenditures          $11,884,194   $97,266,369  $ 2,204,072  $42,094,952
---------------------------------------------------------------------------

The Company records the fair value of future obligations associated with the retirement of long-lived tangible assets, such as well sites and facilities. Accounting for the recognition of this obligation results in an increase to the carrying value of these assets. This amount has been shown as the Company's asset retirement obligation. LIQUIDITY AND CAPITAL RESOURCES At September 30, 2006, the Company had drawn $37.0 million on its $46.0 million credit facilities. At October 31, 2006, bank indebtedness stood at $38.5 million. Rockyview will typically utilize three sources of funding to finance its capital expenditure program: internally generated funds flow from operations, debt where deemed appropriate and new equity issues if available on favourable terms. When financing corporate acquisitions, the Company may also assume certain future liabilities. In addition, the Company may adjust its capital expenditure program depending on the commodity price outlook and further opportunities that may be identified. OUTSTANDING SHARE DATA On November 3, 2006, there were 19,494,378 common shares outstanding, 892,272 outstanding warrants and 1,874,835 stock options with an average exercise price of $5.34 per share. CONTRACTUAL OBLIGATIONS AND COMMITMENTS The Company has contractual obligations in the normal course of operations including the purchase of assets and services, operating agreements, transportation commitments and sales commitments. These obligations are of a recurring and consistent nature and impact cash flow in an ongoing manner. Rockyview leases office space through an arrangement deemed to be an operating lease for accounting purposes. As such, the Company is not required to record its lease obligation as a liability, nor does it record lease obligations as an asset. GUARANTEES AND OFF-BALANCE SHEET ARRANGEMENTS The Company has not entered into any off-balance sheet arrangements or guarantees. BUSINESS RISKS No changes have been made to the Business Risks as stated in Rockyview's annual report. CRITICAL ESTIMATES The Company's financial statements have been prepared in accordance with Canadian generally accepted accounting policies ("GAAP"). Certain accounting policies require management to make appropriate decisions with respect to the formulation of estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Rockyview's management review their estimates frequently; however, the emergence of new information and changed circumstances may result in actual results or changes to estimated amounts that differ materially from current estimates. Rockyview attempts to mitigate this risk by employing individuals with the appropriate skill set and knowledge to make reasonable estimates; developing internal control systems; and comparing past estimates to actual results. The Company's financial and operating results include estimates on the following: - Depletion, depreciation and accretion based on estimates of oil and gas reserves; - Estimated revenues, operating expenses and royalties for which actual revenues and costs have not been received; - Estimated capital expenditures on projects in progress; - Estimated fair value of Espoir acquisition, including petroleum and natural gas properties; - Estimated fair value of asset retirement obligation including estimates of future costs and the timing of costs. OUTLOOK The decline in natural gas prices will result in lower than projected cash flow for the Company in 2006. The deferral of drilling projects pending a sustained recovery of natural gas prices represents prudent management of the Company's financial resources. ADDITIONAL INFORMATION Additional information regarding the Company including Rockyview's annual information form is available on SEDAR at www.sedar.com or on Rockyview's website www.rockyviewenergy.com.


Consolidated Balance Sheet
(unaudited)
                                               September 30,   December 31,
                                                       2006           2005
---------------------------------------------------------------------------
ASSETS
Current assets
Cash                                              1,526,239      5,948,526
Accounts receivable                               9,044,451      4,990,016
Other current assets                              1,597,936        530,490
---------------------------------------------------------------------------
                                                 12,168,626     11,469,032

Goodwill (note 3)                                11,193,868              -
Future income taxes                                       -      2,961,870
Property, plant and equipment (note 4)          137,518,977     48,812,655
---------------------------------------------------------------------------
                                              $ 160,881,471  $  63,243,557
---------------------------------------------------------------------------
---------------------------------------------------------------------------

LIABILITIES
Current liabilities
Accounts payable and accrued liabilities       $ 14,763,656  $  10,519,389

Long-term debt (note 8)                          37,000,000              -
Future income taxes                               9,278,659              -
Asset retirement obligations (note 5)             2,344,605        997,315
---------------------------------------------------------------------------
                                                 63,386,920     11,516,704
---------------------------------------------------------------------------

SHAREHOLDERS' EQUITY
Share capital (note 6)                           94,882,724     48,797,413
Warrants (note 6)                                   571,054        573,487
Contributed surplus (note 6)                        955,853        261,094
Retained earnings                                 1,084,920      2,094,859
---------------------------------------------------------------------------
                                                 97,494,551     51,726,853
---------------------------------------------------------------------------
                                              $ 160,881,471  $  63,243,557
---------------------------------------------------------------------------
see accompanying notes to financial statements



Approved by the Board of Directors

"signed"                               "signed"
John Howard                            Steve Cloutier
Director                               Director


Consolidated Statement of Operations and Retained Earnings
(unaudited)

                                Three         Nine       Three
                               months       months      months      Period
                                ended        ended       ended       ended
                             Sept. 30,    Sept. 30,   Sept. 30,   Sept. 30,
                                 2006         2006        2005        2005
---------------------------------------------------------------------------
REVENUE
Petroleum and natural gas  $7,681,428  $23,259,407  $5,711,873  $6,202,088
Royalties expense          (1,320,588)  (4,599,406) (1,082,777) (1,178,232)
---------------------------------------------------------------------------
                            6,360,840   18,660,001   4,629,096   5,023,856
EXPENSES
Operating                   2,018,128    4,951,893     691,089     766,343
Transportation                223,511      627,439     131,210     143,291
General and administrative    422,101    1,597,143     299,563     362,053
Stock-based compensation      256,981      694,760     136,413     151,240
Interest                      456,729    1,025,314           -           -
Depletion, depreciation
 and accretion              4,794,578   12,660,002   2,143,414   2,414,986
---------------------------------------------------------------------------
                            8,172,028   21,556,551   3,401,689   3,837,913
---------------------------------------------------------------------------
Net income (loss) before
 income taxes              (1,811,188)  (2,896,550)  1,227,407   1,185,943
Current income tax expense
 (recovery)                  (229,945)    (241,319)    281,890     315,694
Future income tax expense
 (recovery)                  (423,613)  (1,645,292)    203,104     159,173
---------------------------------------------------------------------------
Net income (loss)          (1,157,630)  (1,009,939)    742,413     711,076
Retained earnings (deficit),
 beginning of period        2,242,550    2,094,859     (31,337)          -
---------------------------------------------------------------------------
Retained earnings,
 end of period             $1,084,920  $ 1,084,920  $  711,076  $  711,076
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Net income (loss) per
 share - basic and diluted
 (note 6)                  $    (0.06) $     (0.05) $     0.06  $     0.10

see accompanying notes to financial statements



Consolidated Statement of Cash Flows
(unaudited)

                                Three         Nine       Three
                               months       months      months      Period
                                ended        ended       ended       ended
                             Sept. 30,    Sept. 30,   Sept. 30,   Sept. 30,
                                 2006         2006        2005        2005
---------------------------------------------------------------------------
Cash flows from operating
 activities
Net income (loss)         $(1,157,630) $(1,009,939) $  742,413  $  711,076
Items not affecting cash
 Depletion, depreciation
  and accretion             4,794,578   12,660,002   2,143,414   2,414,986
 Stock-based compensation
  expense                     256,981      694,760     136,413     151,240
 Future income taxes
  (recovery)                 (423,613)  (1,645,292)    203,104     159,173
Asset retirement
 expenditures                 (37,943)     (60,713)          -           -
---------------------------------------------------------------------------
Funds flow from operations  3,432,373   10,638,818   3,225,344   3,436,475
Net change in non-cash
 working capital items         40,152      (54,881)   (495,891)   (736,629)
---------------------------------------------------------------------------
Net cash provided by
 operating activities       3,472,525   10,583,937   2,729,453   2,699,846
---------------------------------------------------------------------------

Cash flow from financing
 activities
Issue of shares and warrants
 for cash, net of costs             -            -     (28,132)  7,859,220
Issue of shares for cash
 upon exercise of warrants          -       19,999           -           -
Increase in bank loan       7,000,000   28,000,000           -           -
Changes in non-cash working
 capital - financing items          -            -     (37,648)          -
---------------------------------------------------------------------------
Net cash used in
 financing activities       7,000,000   28,019,999     (65,780)  7,859,220
---------------------------------------------------------------------------

Cash flow from investing
 activities
Acquisition of Espoir
 Exploration Corp.                  -   (8,487,278)          -           -
Acquisition of oil and
 gas properties                     -            -           -  (1,265,404)
Sale of oil and gas
 properties                         -    2,031,222           -           -
Additions to property,
 plant and equipment      (11,884,194) (32,017,805) (2,204,072) (2,230,393)
Changes in non-cash
 working capital
 - investing items          1,874,509   (4,552,362)  2,163,708   1,193,293
---------------------------------------------------------------------------
Net cash used in
 investing activities     (10,009,685) (43,026,223)    (40,364) (2,302,504)
---------------------------------------------------------------------------

Change in cash during
 the period                   462,840   (4,422,287)  2,623,309   8,256,562
Cash - beginning
 of period                  1,063,399    5,948,526   5,633,253           -
---------------------------------------------------------------------------
Cash - end of period      $ 1,526,239  $ 1,526,239  $8,256,562  $8,256,562
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Supplemental information:
Interest paid             $   539,790  $ 1,125,430  $        -  $        -
Income taxes paid         $         -  $   673,799  $        -  $        -

see accompanying notes to financial statements

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2006 (unaudited) 1. BASIS OF PRESENTATION Rockyview Energy Inc. ("Rockyview" or the "Company") was incorporated on April 12, 2005 and commenced operations on June 21, 2005. Accordingly, the comparative financial statements reflect operating results for the quarter ended September 30, 2005, and the 102 day period from June 21 to September 30, 2005. 2. SIGNIFICANT ACCOUNTING POLICIES The interim consolidated financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles ("GAAP"). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Actual results could differ from these estimates. The financial statements have been prepared following the same accounting policies and methods of computation as the financial statements for the fiscal period ended December 31, 2005, other than the consolidation of the Company's wholly owned subsidiary, Rockyview Oil & Gas Ltd. The disclosures provided below are incremental to those included with the annual financial statements. The interim consolidated financial statements should be read in conjunction with the annual financial statements and notes thereto in the Company's annual report for the period ended December 31, 2005. Goodwill Goodwill is the residual amount that results when the purchase price of an acquired business exceeds the fair value of the identifiable assets and liabilities of the acquired business. Net identifiable liabilities acquired include an estimate of future income taxes. In accordance with CICA Handbook Section 3062 ("HB 3062"), "Goodwill and Other Intangibles", goodwill is tested at least annually for impairment. Impairment is charged to income during the period in which it is deemed to have occurred. The test for impairment is the comparison of the book value of net assets to the fair value of the Company. If the fair value of the Company is less than its book value, the impairment loss is measured by allocating the fair value of the Company to the identifiable assets and liabilities at their value. The excess of the Company's fair value over the identifiable net assets is the implied fair value of goodwill. If this amount is less than the book value of goodwill, the difference is the impairment amount and would be charged to income during the period. 3. ACQUISITION OF ESPOIR EXPLORATION CORP. On January 11, 2006, Rockyview acquired the issued and outstanding shares of Espoir Exploration Corp. ("Espoir") and immediately changed its name to Rockyview Oil & Gas Ltd. The acquisition was accounted for using the purchase method of accounting and the purchase price allocation and consideration paid is as follows:


                                                                         $
---------------------------------------------------------------------------
Net assets acquired at assigned values
 Working capital deficiency                                     (3,729,629)
 Property, plant and equipment                                  62,855,000
 Undeveloped land and seismic                                    8,096,837
 Goodwill                                                       11,193,868
 Debt assumed                                                   (9,000,000)
 Asset retirement obligation                                      (980,098)
 Future income taxes                                           (13,885,821)
---------------------------------------------------------------------------
Net assets acquired                                             54,550,157
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Consideration given
 Common shares issued (7,441,499 shares)                        46,062,879
 Cash                                                            8,324,883
 Acquisition costs                                                 162,395
---------------------------------------------------------------------------
                                                                54,550,157
---------------------------------------------------------------------------
---------------------------------------------------------------------------


4. PROPERTY, PLANT AND EQUIPMENT

                                              September 30,   December 31,
                                                       2006           2005
---------------------------------------------------------------------------
Petroleum and natural gas properties and
 equipment                                    $ 154,129,112 $   52,885,472
Accumulated depletion and depreciation           16,610,775      4,072,817
---------------------------------------------------------------------------
                                                137,518,337     48,812,655
---------------------------------------------------------------------------

During the third quarter, the Company capitalized $258,151 (2005 - $108,937) of general and administrative expenses related to development activities. As at September 30, 2006, the depletion calculation excluded unproved properties of $11.4 million (2005 -$6.7 million). 5. ASSET RETIREMENT OBLIGATIONS The following table presents the reconciliation of the beginning and ending asset retirement obligation associated with the retirement of oil and gas properties:

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Balance, beginning of
 period                $ 2,173,846   $   997,315    $ 810,478    $       -
Liabilities acquired             -       954,175            -      808,732
Liabilities incurred       165,225       331,144        7,127        7,127
Liabilities settled        (37,943)      (60,713)           -            -
Accretion expense           43,477       122,684       16,210       17,956
---------------------------------------------------------------------------
Balance, end of period $ 2,344,605   $ 2,344,605    $ 833,815    $ 833,815
---------------------------------------------------------------------------

The total undiscounted amount of future cash flows required to settle the 
obligation at September 30, 2006 is $9,700,000.

6. SHARE CAPITAL

(a) Issued

Common shares:                                    Number            Amount
---------------------------------------------------------------------------
Balance - January 1, 2006                     12,049,077      $ 48,797,413
Acquisition of Espoir                          7,441,499        46,062,879
Issued on exercise of warrants                     1,902            11,222
---------------------------------------------------------------------------
Balance - March 31, 2006                      19,492,478      $ 94,871,514
Issued on exercise of warrants                     1,900            11,210
---------------------------------------------------------------------------
Balance - June 30, 2006                       19,494,378        94,882,724
Issued on exercise of warrants                         -                 -
---------------------------------------------------------------------------
Balance - September 30, 2006                  19,494,378        94,882,724
---------------------------------------------------------------------------
---------------------------------------------------------------------------

Warrants:                                         Number            Amount
---------------------------------------------------------------------------
Balance - January 1, 2006                        896,074      $    573,487
Exercised                                         (1,902)           (1,217)
---------------------------------------------------------------------------
Balance - March 31, 2006                         894,172      $    572,270
Exercised                                         (1,900)           (1,216)
Balance - June 30, 2006                          892,272           571,054
---------------------------------------------------------------------------
Exercised                                              -                 -
Balance - September 30, 2006                     892,272           571,054
---------------------------------------------------------------------------


Each whole Rockyview Warrant entitles the holder to acquire one Rockyview
Share at an exercise price of $5.26 and expire February 20, 2008.

(b) Stock Options


The following table sets forth a reconciliation of stock option plan
activity during the period:

                                                                  Weighted
                                                                   Average
Stock options:                                    Number             Price
---------------------------------------------------------------------------
Balance - January 1, 2006                        907,502          $   4.86
Granted                                          730,333              5.98
---------------------------------------------------------------------------
Balance - March 31, 2006                       1,637,835          $   5.34
Granted                                          227,000          $   6.07
Cancelled                                        (90,000)         $   5.98
---------------------------------------------------------------------------
Balance - June 30, 2006                        1,774,835          $   5.42
Granted                                          100,000          $   3.90
---------------------------------------------------------------------------
Balance - end of period                        1,874,835          $   5.34
---------------------------------------------------------------------------
Exercisable - end of period                      275,834          $   4.74
---------------------------------------------------------------------------


(c) Stock-Based Compensation

The fair value of options granted was estimated based on the following 
assumptions:



                 Number of                Risk-Free  Expected   Fair Value
Date of            Options       Expected  Interest      Life   of Options
Grant              Granted     Volatility      Rate    (Years)     Granted
---------------------------------------------------------------------------
11-Jan-06          730,333          29.0%      3.86%        3 $  1,073,590
10-Apr-06           85,000          31.7%      4.23%        3      136,850
01-May-06           70,000          32.0%      4.28%        3      119,000
01-Jun-06           72,000          33.0%      4.19%        3      117,360
14-Jul-06          100,000          37.2%      4.26%        3      118,000
---------------------------------------------------------------------------
                 1,057,333                                    $  1,564,800
---------------------------------------------------------------------------
Unrecognized compensation at January 1, 2006                     1,381,710
---------------------------------------------------------------------------
                                                                 2,946,510
Stock-based compensation recognized in period                     (694,760)
---------------------------------------------------------------------------
Amount for future recognition                                 $  2,251,750
---------------------------------------------------------------------------


(d) Earnings per share

The following table summarizes the common shares used in calculating net
income per share:

                             Three          Nine        Three
                            months        months       months       Period
                             ended         ended        ended        ended
                          Sept. 30,     Sept. 30,    Sept. 30,    Sept. 30,
                              2006          2006         2005         2005
---------------------------------------------------------------------------
Basic                   19,494,378    19,193,020   12,068,699    7,086,852
Stock options                    -        91,286       83,999       83,999
Warrants                         -       285,307            -            -
---------------------------------------------------------------------------
Diluted                 19,494,378    19,569,613   12,152,698    7,170,851
---------------------------------------------------------------------------

The exercise of stock options and warrants are anti-dilutive for the three month period ended September 30, 2006. 7. TAXES As at September 30, 2006, the Company has tax pools of approximately $105.8 million that are available to shelter future taxable income. 8. BANK LOAN At September 30, 2006, the Company had a $40.0 million revolving extendible credit facility with a Canadian chartered bank. The facility may be drawn down or repaid at any time but there are no scheduled repayment terms. The borrowing base is subject to a semi-annual review by the bank. At October 31, 2006, the Company had drawn $38.5 million on its bank loan. In addition, the Company's banker has provided an additional $6.0 million revolving credit facility on a short-term basis to finance the funding of Rockyview's capital commitments. This facility will only be utilized if the amount drawn on the main credit facility exceeds $40.0 million. There are no scheduled repayment terms on this facility, other than, should it be drawn upon, it must be repaid in full not later than March 31, 2007. This credit facility bears interest based on a sliding scale tied to the Company's debt-to-cash-flow, from a minimum of the bank's prime rate plus 0.575% to a maximum of the bank's prime rate plus 1.875% . ADDITIONAL INFORMATION Additional information regarding the Company including Rockyview's annual information form is available on SEDAR at www.sedar.com or on Rockyview's website www.rockyviewenergy.com. Reader Advisory - Statements in this news release contain forward-looking information including expectations of future production. 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, 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, 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 production, costs and expenses. The risks outlined above should not be construed as exhaustive. The reader is 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. 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. This conversion factor is an industry accepted norm and is not based on either energy content or current prices. Investors are also cautioned that this news release contains the term reserve life index, which is not a recognized measure under Canadian generally accepted accounting principles ("GAAP"). Management believes that this measure is a useful supplemental measure of the length of time the reserves would be produced over at the rate used in the calculation. Investors are cautioned, however, that this measure should not be construed as an alternative to other terms such as net income determined in accordance with GAAP as a measure of performance. Rockyview's method of calculating this measure may differ from other companies, and accordingly, they may not be comparable to measures used by other companies. The Toronto Stock Exchange has neither approved nor disapproved of the contents of this news release.

Contact Information

  • Rockyview Energy Inc.
    Steve Cloutier
    President & C.E.O.
    (403) 538-5000
    (403) 538-5050 (FAX)
    or
    Rockyview Energy Inc.
    Alan MacDonald
    Vice President, Finance & C.F.O.
    (403) 538-5000
    (403) 538-5050 (FAX)
    Website: www.rockyviewenergy.com