Sabretooth Energy Ltd.

Sabretooth Energy Ltd.

August 24, 2007 09:10 ET

Sabretooth Energy to Begin Trading on the Toronto Stock Exchange

Company Provides Operational Update

CALGARY, ALBERTA--(Marketwire - Aug. 24, 2007) - Sabretooth Energy Ltd. (Sabretooth) (TSX:SAB) is pleased to announce that its application has been granted for the listing of its common shares on the Toronto Stock Exchange ("TSX"), with trading to commence at the open on Friday, August 24, 2007, under the stock symbol "SAB".

Sabretooth completed a plan of arrangement with Bear Ridge Resources Ltd. (TSX:BER) ("Bear Ridge") on August 21, 2007. Pursuant to the arrangement Sabretooth acquired all of the issued and outstanding common shares and warrants of Bear Ridge. Concurrent with the Sabretooth listing Bear Ridge shares will be delisted from the TSX.

Sabretooth now has 39.2 million common shares issued and outstanding.

Production update

With the close of the Bear Ridge acquisition, current production is 3,300 boe/d approximately 85% gas weighted.


Currently Sabretooth has 17,000 GJ per day hedged (80% of total production) at a weighted average floor and ceiling price of $6.37 / GJ and $8.77/GJ respectively. Sabretooth's hedging strategy is to continue to look at value add financial instruments and to capitalize on these instruments when the market outlook is uncertain.

Operations Update

George discovery well:

In June of 2007 Sabretooth drilled a significant discovery well at George 14-28-82-5W6. The well encountered 11 separate gas bearing reservoirs and was completed in the first two Kiskatinaw zones in July. The well went on production on August 18, 2007 and is currently producing at a restricted rate of 4 MMCF/d (100% working interest) from a single Kiskatinaw zone. The first two development wells on this play have been licensed.

Gunnell development wells:

4 (1.2 net) development wells were drilled in Q3 in N.E. British Columbia. These wells are expected to come on stream by the end of the third quarter and add 400 boe/d net to Sabretooth's production.

2007 Capital plans

Sabretooth plans to drill up to 17 (11 net) additional wells before the end of 2007. The drilling will be focused on the Peace River Arch in Alberta and British Columbia. The capital program will be funded out of existing cash flow and bank lines. Exit production for 2007 is forecast to be 4,000 boe/d.

Balance Sheet Strength

Sabretooth currently has a working capital deficiency of $16 million. Sabretooth has bank lines of $55 million.

About Sabretooth Energy Ltd.

Sabretooth (TSX:SAB) develops solutions to discover and develop energy. We are a company located in Calgary and carrying out operations in Western Canada. Sabretooth's energy comes from young assets and an experienced management team.

Further information on the Sabretooth listing can be found in the TSX bulletin 2007-1209 issued on August 22, 2007.

Cautionary Statements

This press release contains forward-looking statements. These statements relate to future events or future performance of Sabretooth. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", 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. Such statements reflect the Sabretooth's current views with respect to certain events, and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Sabretooth's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Sabretooth will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goal, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance.

The risks to which Sabretooth is subject include those of the oil and gas industry in general including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks, inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements speak only as of the date of this press release. The Sabretooth does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, expect as required by law.

Sabretooth Energy does not undertake to update, correct or revise any forward-looking information as a result of any new information, future events or otherwise.

The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ration for gas of 6 mcf:1 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.

Contact Information