Sierra Vista Energy Ltd.
TSX VENTURE : SVR.A
TSX VENTURE : SVR.B

Sierra Vista Energy Ltd.

April 27, 2007 13:32 ET

Sierra Vista Announces 2006 Financial and Operating Results

CALGARY, ALBERTA--(CCNMatthews - April 27, 2007) -

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

Sierra Vista Energy Ltd. (TSX VENTURE:SVR.A) (TSX VENTURE:SVR.B) ("Sierra Vista" or the "Company") is pleased to announce its financial and operating results and the filing of its audited financial statements and related management discussion and analysis ("MD&A") for the year ended December 31, 2006. Select operational and financial results are outlined below and should be read in conjunction with the Company's audited financial statements and related MD&A which can be found on Sedar at www.sedar.com.

Sierra Vista is pleased to report to our shareholders that during 2006, the Company launched an aggressive drilling program that allowed the Company to earn a significant amount of highly prospective undeveloped land that will provide a large drilling inventory for many years to come.

Highlights of the Company's first full year of operations as a junior oil and gas company include:

- Executed several farm-in agreements in the Company's core area of Ante Creek that will allow the Company to earn up to 31 sections of highly prospective land.

- Assembled a large corporate, high working interest, undeveloped land base of 36,600 gross acres (27,500 net) including 21,600 net acres in the Company's core area of Ante Creek. Completion of the ARC Resources Ltd. farm-in in 2007 will allow the Company to earn up to an additional 8,480 gross acres (5,512 net) of undeveloped land.

- Achieved significant reserve growth from December 31, 2005. The Company increased its proved reserves by 249% to 1,102 mboe and increased proved and probable reserves by 178% to 1,636 mboe. The Company now has a proved reserve life index ("RLI") of 5.9 years and a proved plus probable RLI of 8.9 years.

- Increased exit production 206% to 505 boe/d in December 2006 from 165 boe/d in December 2005.

- Achieved strong drill-bit results and efficient use of capital employed. The Company drilled 16 gross (10.9 net) wells during 2006 with an overall success rate of 75% while completing its $13 million CEE flow-through commitment. In the Company's core area of Ante Creek, finding and development costs ("F&D"), including future capital, were $22.34 per boe on a proved basis and $18.93 per boe on a proved plus probable basis. On a non-promoted basis, F&D costs in Ante Creek would have been $19.27 per boe on a proved basis and $16.33 per boe on a proved plus probable basis.

- Earned strong corporate field netbacks of $33.17 per boe through production of light sweet oil (40o API) and high heat content natural gas (1,100 mmbtu).

- Subsequent to December 31, 2006, closed two financings for total gross proceeds of $15 million to eliminate the Company's working capital deficit and provide sufficient capital to complete the ARC Resources farm-in during 2007.



Financial and Operations Highlights

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Financial
Petroleum and
natural gas
revenue $ 1,082,723 $ 331,611 $ 3,007,180 $ 331,611
Cash flow from
operations(1) $ 152,382 $ 179,576 $ 1,081,440 $ 137,024
Per share
- basic $ 0.01 $ 0.01 $ 0.04 $ 0.02
Per share
- diluted $ 0.01 $ 0.01 $ 0.04 $ 0.02
Net loss $ (793,791) $ (158,933) $ (231,150) $ (262,525)
Per share
- basic $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Per share
- diluted $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Capital
expenditures $ 12,791,156 $ 7,345,591 $ 31,800,034 $ 7,833,432
Working capital
(deficiency),
including bank
debt $ (10,945,038) $ 5,290,359 $ (10,945,038) $ 5,290,359
Total assets $ 40,518,063 $ 14,171,866 $ 40,518,063 $ 14,171,866

Operating
Crude oil and
natural gas
liquids (bbl/d) 94 86 65 86
Natural gas
(mcf/d) 858 412 584 412
Barrels of oil
equivalent
(boe/d) (6:1) 237 154 163 154
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Average Prices
Crude oil and
natural gas
liquids ($/bbl) $ 57.62 $ 60.78 $ 62.62 $ 60.78
Natural gas
($/mcf) $ 7.43 $ 13.35 $ 7.11 $ 13.35
Barrels of oil
equivalent
($/boe) $ 49.73 $ 69.40 $ 50.68 $ 69.40

Field operating
netback per boe $ 30.15 $ 52.47 $ 33.17 $ 52.47
Operating costs
per boe $ 9.00 $ 4.32 $ 7.72 $ 4.32

Weighted average
shares
outstanding(2) 31,549,318 12,079,943 25,687,022 7,948,874
Actual Class A
Shares
outstanding at
end of period 24,093,650 9,355,000 24,093,650 9,355,000
Actual Class B
Shares
outstanding at
end of period 1,170,000 1,170,000 1,170,000 1,170,000
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(1) Management uses cash flow from operations (before changes in non-cash
working capital) to analyze operating performance and leverage. Cash
flow from operations as presented does not have any standardized meaning
prescribed by Canadian GAAP and therefore it may not be comparable with
the calculation of similar measures for other entities.

(2) To calculate weighted average basic shares outstanding, the Class B
shares were converted at $10 divided by the greater of $1.00 and the 30
day weighted average price of Class A shares ending on December 31, 2006
of $0.82.


Outlook

The management and board of directors of Sierra Vista continue to be very optimistic about the future potential of the Ante Creek, light oil resource play as a result of the ground work laid in 2006. The Company has earned a significant land base relative to its size and with the completion of the ARC Resources farm-in during 2007 will provide the Company with in excess of 100 drilling locations and a solid base for sustainable long term growth.

Annual Meeting

Sierra Vista's Annual General Meeting is schedule for 10:00 am on Thursday, June 21, 2007 in the Cardium Room of the Calgary Petroleum Club, 319 - 5th Avenue S.W., Calgary, Alberta.

MANAGEMENT'S DISCUSSION AND ANALYSIS

The following management discussion and analysis ("MD&A") of financial conditions and results of operations is as of April 18, 2007 and should be read in conjunction with the audited financial statements and notes of Sierra Vista Energy Ltd. ("Sierra Vista" or the "Company") for the year ended December 31, 2006 and for the period from incorporation on June 7, 2005 to December 31, 2005 and also should be read in conjunction with the Company's Annual Information Form. Additional information relating to the Company can be found on the SEDAR website at www.sedar.com.

Discussion with regard to Sierra Vista's 2007 outlook is based on currently available information. The financial data presented below has been prepared in accordance with Canadian generally accepted accounting principles (GAAP). The reporting and operating currency is the Canadian dollar.

This MD&A contains the terms funds flow from operations, funds flow per share, operating netback and corporate netback which are not Canadian GAAP standards and therefore may not be comparable to performance measures presented by others. Funds flow from operations, as used by the Company, is comprised of cash flow from operating activities before changes in non-cash operating working capital. Operating netback represents revenue less royalties, operating expenses and transportations expenses. Corporate netback is operating netback plus interest revenue less general and administrative expenses and interest expense. These non-GAAP measures may not be comparable to the calculation of similar measures for other entities.

The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 thousand cubic feet (mcf) equals 1 barrel (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 this report are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information regarding the Company set forth in this report includes forward looking statements. All statements other than statements of historical facts contained in this MD&A, including statements regarding our future financial position, business strategy and plans and objectives of management for future operations, are forward-looking statements. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect" and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. These forward-looking statements are subject to a number of risks, uncertainties and assumptions described elsewhere in this report.

Other sections of this report may include additional factors, which could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause the Company's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.

We undertake no obligation to update publicly or revise any forward-looking statements. Furthermore, the forward-looking statements contained in this report are made as of the date of this report, and we undertake no obligation to update publicly or to revise any of the included forward-looking statements unless required by applicable securities laws, whether as a result of new information, future events or otherwise. The forward-looking statements in this report are expressly qualified by this cautionary statement.

SUBSEQUENT EVENTS

Subsequent to December 31, 2006, the Company closed a private placement equity financing for total gross proceeds of $5,000,400. The Company issued 5,556,000 Class A common shares, on a flow-through basis, at $0.90 per share. The shares issued pursuant to the financing are subject to a four-month hold period.

Subsequent to December 31, 2006, the Company closed a private placement of $10 million principal amount of convertible unsecured debentures. The debentures bear interest at a rate of 9.5% per annum, payable semi-annually in arrears, are due in 2012 and are convertible at any time at the option of the debenture holder into 11,111,111 Class A common shares of the Company at a conversion price of $0.90 per share.

INCORPORATION AND COMMENCEMENT OF OPERATIONS

Sierra Vista Energy Ltd. was incorporated under the laws of the Province of Alberta on June 7, 2005 and commenced operation in September 2005. Accordingly, the comparative figures for the year ended December 31, 2005 are for the period from June 7, 2005 to December 31, 2005.



SELECTED INFORMATION

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Petroleum and
natural gas
revenue, before
royalties $ 1,082,723 $ 331,611 $ 3,007,180 $ 331,611
Funds flow from
operations $ 152,382 $ 179,576 $ 1,081,440 $ 137,024
Funds flow from
operations per
share - basic $ 0.01 $ 0.01 $ 0.04 $ 0.02
Funds flow from
operations per
share - diluted $ 0.01 $ 0.01 $ 0.04 $ 0.02
Net loss $ (793,791) $ (158,933) $ (231,150) $ (262,525)
Net loss per
share - basic $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Net loss per
share - diluted $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Capital
expenditures $12,791,156 $ 7,345,591 $31,800,034 $ 7,833,432
Working capital
(deficit),
including bank
debt ($10,945,038) $ 5,290,359 ($10,945,038) $ 5,290,359
Production
(BOE/d)(1) 237 154 163 154
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(1) Production volumes per day for the quarter and year ended December 31,
2005 are calculated from the first day production commenced on December
31, 2005.

PRODUCTION

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Production
Crude oil and natural
gas liquids (bbl/d) 94 86 65 86
Natural gas (mcf/d) 858 412 584 412
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Oil equivalent
production (BOE/d) (1) 237 154 163 154
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(1) Production volumes per day for the quarter and year ended December 31,
2005 are calculated from the first day production commenced on December
31, 2005.


For the fourth quarter of 2006 and for the year ended December 31, 2006, the commodity mix of the Company remains steady at 60% natural gas and 40% light, sweet crude oil and natural gas liquids. For the three months ended December 31, 2006, the Company averaged 237 BOE/d as compared to 154 BOE/d in the fourth quarter of 2005, a 54% increase, quarter over quarter. Sierra Vista's production continues to be curtailed due to the shut-in of the Company's Bigstone well due to plant restrictions. Management expects that the Bigstone well will be back on production sometime in the third quarter of 2007. The Bigstone well would have contributed approximately 90 BOE/d to the fourth quarter average production. The Company's exit production rate at December 31, 2006 was approximately 505 BOE/d.



PRICING

Benchmark Prices

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Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Crude oil
- WTI (US$ per Bbl) $59.95 $60.05 $66.00 $56.70
Crude oil
- Edmonton Par Price
($ per Bbl) $65.45 $72.11 $72.90 $69.82
Natural gas
- AECO ($/mcf) $ 6.53 $11.61 $ 6.55 $ 8.81
Exchange rate ($US/$Cdn) 0.87 0.85 0.88 0.83
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West Texas Intermediate at Cushing, Oklahoma ("WTI") is the benchmark reference price for North American crude oil prices. Canadian crude oil prices are based upon the average of several postings, primarily at Edmonton Alberta, and represents the WTI price adjusted for quality and transportation differentials, the US/CDN dollars exchange rate and local demand and supply influences. Crude oil prices averaged US$66.00 per barrel and $72.90 at Edmonton for 2006 as global political instability and concerns regarding crude oil inventory levels continued to keep global oil prices unstable. It appears that global oil prices will continue to fluctuate in the near term based on the current political unrest throughout the oil producing regions of the world.

United States natural gas prices are commonly referenced to the New York Mercantile Exchange at Henry Hub in Louisiana ("NYMEX") while Canadian natural gas prices are typically referenced to the AECO Hub in Alberta. Natural gas prices are influenced more by North American supply and demand than global fundamentals. Natural gas prices averaged $6.55 per Mcf at AECO with prices remaining very volatile as natural gas storage levels remained a concern due to a relatively warm winter and a cool summer failed to reduce the amount of natural gas in inventory.



Realized Prices

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Average Prices
Crude oil and natural
gas liquids ($/bbl) $57.62 $60.78 $62.62 $60.78
Natural gas ($/mcf) $ 7.43 $13.35 $ 7.11 $13.35
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Oil equivalent ($/BOE) $49.73 $69.40 $50.68 $69.40
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----------------------------------------------------------------------------


Sierra Vista's averaged realized price for its crude oil and natural gas liquids was $57.62 in the fourth quarter and $62.62 for 2006 while realizing a natural gas price of $7.43 in the fourth quarter and $7.11 for 2006. The decrease in the average natural gas price received during the quarter and year ended December 31, 2006 is consistent with the significant decrease in the AECO price from 2005. The Company continues to realize a higher price compared to the AECO benchmark prices, reflecting the higher heat content of Sierra Vista's natural gas stream coming from the Company's core property of Ante Creek.

Sierra Vista's oil production is predominately a light, sweet quality grade of oil which is reflected by the higher average price received as compared with the average Edmonton posted price during 2006. In addition, natural gas liquids average prices have increased due to the liquids rich production coming from the Company's Ante Creek and Kaybob properties.



REVENUES

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Production Revenue
Crude oil and
natural gas liquids $ 496,364 $161,026 $1,492,290 $161,026
Natural gas $ 586,359 $170,585 $1,514,890 $170,585
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Total production
revenue $1,082,723 $331,611 $3,007,180 $331,611
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For the fourth quarter ended December 31, 2006, Sierra Vista recorded $496,364 in crude oil and natural gas liquids revenues and $586,359 in natural gas revenues, a 208% and 244% increase, respectively, over the fourth quarter in 2005. The increase is attributable to a 54% increase in production from the fourth quarter 2005 to the same period in 2006 which is partially offset by a 5% decline in crude oil and natural gas liquids prices and 44% decline in natural gas prices.

For the year ended December 31, 2006, Sierra Vista recorded $1,492,290 in crude oil and natural gas liquid revenues and $1,514,890 in natural gas revenue. The comparative amounts for the period ended December 31, 2005 are not comparable as production did not commence in 2005 until approximately December 1, 2005.

Interest income of $47,266 and $62,217 relating to cash held on deposit was recorded for the fourth quarter 2006 and year ended December 31, 2006, respectively.

The Company currently has no financial derivatives or physical delivery contracts in place. All production volumes are currently sold into the Alberta spot market.



ROYALTIES

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Gross royalties $239,535 $77,572 $656,137 $77,572
Alberta Royalty Tax
Credit $(50,824) ($19,393) ($143,535) ($19,393)
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Net royalties $188,711 $58,179 $512,602 $58,179
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As a percentage of
revenue 17% 18% 17% 18%
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----------------------------------------------------------------------------


The net average royalty rate for the quarter and year ended December 31, 2006 remained relatively constant at 17% of revenue which is consistent when compared to 2005 average royalty rate which was 18% of revenue.

Currently, all of the Company's production from crown lands is ARTC eligible. In September 2006, the Alberta government announced the elimination of the ARTC program effective January 1, 2007. The elimination of the ARTC program has the affect of increasing the royalties paid to the Alberta government by the Company. The Company expects average royalty rates to increase in 2007 to approximately 22% of revenue from the current rate of approximately 17%.



OPERATING EXPENSES

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Operating expenses $195,898 $20,661 $458,114 $20,661
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Operating expenses
per boe $ 9.00 $ 4.32 $ 7.72 $ 4.32
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Operating expenses per BOE increased to $9.00 and $7.72 for the quarter and year ended December 31, 2006, an increase from $6.58 in the third quarter of 2006 and $6.98 for the nine months ended September 30, 2006. The increase in operating costs during the quarter is attributed to an overall increase in industry costs and increase in emulsion trucking from newly drilled wells in the Company's southern Ante Creek lands where no gathering system has been constructed to date. Trucking of emulsion will continue until the gathering system has been constructed which is scheduled for late 2007.

The Company expects that operating costs per BOE for 2007 will average approximately $8.00 per BOE.

TRANSPORTATION EXPENSES

Transportation expenses were $41,532 or $1.91 per BOE for the quarter ended December 31, 2006 and $68,254 or $1.15 per BOE for the year ended December 31, 2006. The Company expects transportation costs per BOE to decline in 2007 as production increases.



NETBACKS

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Three Months Ended Year Ended
Barrels of oil equivalent December 31 December 31
($/BOE) 2006 2005 2006 2005
----------------------------------------------------------------------------
Revenue $49.73 $69.40 $50.68 $69.40
Royalties $ 8.67 $12.18 $ 8.64 $12.18
Operating expenses $ 9.00 $ 4.32 $ 7.72 $ 4.32
Transportation expenses $ 1.91 $ 0.43 $ 1.15 $ 0.43
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Field operating netback
($/BOE) $30.15 $52.47 $33.17 $52.47
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Approximately 40% of Sierra Vista's production is light sweet crude oil while the remaining approximately 60% is high heat content natural gas reflecting the Company's relatively high netback's per BOE in 2006. As the Company continues to drill and add production volumes in its core area of Ante Creek, the Company expects the field operating netbacks to continue to remain strong relative to the Company's peers while maintaining operating costs at current per BOE ranges.



GENERAL AND ADMINISTRATIVE EXPENSES

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Gross general and
administrative $ 593,356 $ 213,249 $1,368,714 $ 255,801
Overhead recoveries
and capitalized
general and
administrative $(245,835) $ (94,855) $ (595,715) $ (94,855)
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Net general and
administrative
expenses $ 347,521 $ 118,394 $ 772,999 $ 160,946
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The Company capitalizes a portion of its general and administrative ("G&A") expenses that are directly related to exploration and development activities. During the quarter and year ended December 31, 2006, the Company capitalized $82,390 and $283,987, respectively, of general and administrative expenses. As a result of the significant capital expenditure program in the fourth quarter 2006 as a whole, the costs associated with hiring, compensating and retaining employees and consultants have increased.

Currently, Sierra Vista's per BOE G&A is relatively high compared with other industry peers. The high per BOE G&A is a result of the Company's early stage development and the relatively low production base. As production increases in 2007, management expects that the Company's G&A expenses, on a per BOE basis, will decline significantly and settle to within current industry levels. With the exception of some minor staff additions, management believes that it is adequately staffed to execute the 2007 planned capital expenditure program.

STOCK-BASED COMPENSATION

Stock-based compensation expense is the amortization over the vesting period of the stock options granted to employees, directors, and key consultants of the Company. The fair value of the stock options granted is estimated at the grant date using the Black Scholes option pricing model. During the year ended December 31, 2006, the Company issued 1,530,000 stock options. Stock-based compensation for the quarter and year ended December 31, 2006 was $106,117 and $190,939, respectively, utilizing the Black Scholes model. Assumptions used for the Black Scholes model in 2006 were a weighted average risk free interest rate of 4.97%, a 5 year life and a weighted average volatility of 79% resulting in fair values ranging from $0.53 to $0.90 per option grant.

INTEREST EXPENSE

Interest expense for the quarter ended December 31, 2006 was $175,888 compared with no interest expense in the same quarter in 2005. A significant portion of the interest expense in the fourth quarter of 2006 was interest incurred on the capital expenditures of qualified exploration expenses relating to the renounced expenditures on the Company's initial public offering in 2005.



DEPLETION, DEPRECIATION AND ACCRETION

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Depletion and
depreciation expense $707,869 $139,751 $1,481,680 $139,751
Accretion expense $ 4,197 $ 1,768 $ 11,517 $ 1,768
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Total $712,066 $141,519 $1,493,197 $141,519
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----------------------------------------------------------------------------


Depletion, depreciation and accretion ("DD&A") increased 115% in the fourth quarter as compared to the third quarter 2006. This significant increase in overall DD&A is a result of a 76% increase in production in the fourth quarter as compared to the third quarter 2006 and the increased cost of proved reserve additions through drilling and facilities infrastructure which is a significant trend in the Western Canadian Sedimentary Basin. Throughout 2006, and especially in the fourth quarter of 2006, Sierra Vista invested a significant amount of capital towards field infrastructure projects which does not immediately increase proved reserves but is critical to current operations and future development plans. It is the Company's expectation that as production is added and critical mass is achieved in the Company's core areas of Ante Creek and Kaybob, additional proved reserves will be added at reduced costs and the depletion rate will decline over time.

The Company follows the full cost method of accounting for its operations as described in the CICA's accounting guideline 16, "Oil and Gas Accounting - Full Cost". Accordingly, the cost of all wells, both successful and unsuccessful, are added to the Company's capital base and are depleted on the unit of production method based on estimated gross proved reserves at forecast prices and costs as determined by independent engineers and the Company's internal estimates. Costs of unproven properties, seismic and undeveloped land, net of impairments, are excluded from the depletion calculation and future capital costs associated with proved undeveloped reserves are included in the depletion calculation.

In recognizing an asset retirement obligation "ARO" associated with the retirement of a tangible long-lived asset, the Company records a liability in the period in which it is incurred and becomes determinable, with an offsetting increase in the carrying amount of the associated asset. The cost of the tangible asset, including the initially recognized ARO is depleted such that the cost of the ARO is recognized over the useful life of the asset. The ARO is recorded at fair value and accretion expense is recognized over time as the discounted liability is accreted to its expected settlement value.

The provision for asset retirement obligations are determined by management in consultation with the Company's independent engineers and are based on prevailing regulations, costs, technology and industry standards. The Company estimates that the total future value of its asset retirement obligations at December 31, 2006 is $674,000. Current expenditures for actual abandonment and site restoration in the year ended December 31, 2006 were nil.

TAXES

During the fourth quarter of 2006, the Company recorded a future income tax expense of $127,990 and future income tax recovery for the year ended December 31, 2006 of $371,546 and paid no cash income taxes. The future income tax recovery is a result of a reduction in both federal and provincial corporate income tax rates which were substantively enacted during the second quarter of 2006.



NET LOSS

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Net loss $(793,791) $(158,933) $(231,150) $(262,525)
Net loss - per basic
share $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Net loss - per
diluted share $ (0.03) $ (0.01) $ (0.01) $ (0.03)
Weighted average
shares outstanding
- basic (1) 31,549,318 12,079,943 25,687,022 7,948,874
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Weighted average
shares outstanding
- diluted (1) 31,549,318 12,079,943 25,687,022 7,948,874
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Assumes conversion of Class B shares as at December 31, 2006 at a price
of $1.00 per Class A share and as at December 31, 2005 at a price of
$1.29 per Class A share.


For the quarter's ended December 31, 2006 and 2005, and the year ended December 31, 2006, and for the period from June 7, 2005 to December 31, 2005 all outstanding stock options were anti-dilutive and have been excluded in calculating the diluted weighted average shares outstanding.

FUNDS FLOW FROM OPERATIONS

It is management's view that funds flow from operations is a useful measure of performance and a good benchmark when comparing results from year to year or quarter to quarter. Funds flow from operations is a non-GAAP measure, reconciled with net loss in the table below:



----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Net loss $(793,791) $(158,933) $(231,150) $(262,525)
Add back (subtract)
items not effecting
cash:
Depletion,
depreciation and
accretion $ 712,066 $ 141,519 $ 1,493,197 $ 141,519
Stock-based
compensation $ 106,117 $ 190,674 $ 190,939 $ 251,714
Future income tax
expense (recovery) $ 127,990 $ 6,316 $ (371,546) $ 6,316
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Funds flow from
operations $ 152,382 $ 179,576 $ 1,081,440 $ 137,024
Funds flow per share
- basic $ 0.01 $ 0.01 $ 0.04 $ 0.02
Funds flow per share
- diluted $ 0.01 $ 0.01 $ 0.04 $ 0.02
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SHARE CAPITAL

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Weighted Average
Class A and B
shares outstanding
Basic - Class A 19,849,318 8,618,532 13,987,022 4,487,463
Basic - Class B(1) 11,700,000 3,461,411 11,700,000 3,461,411
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Weighted average
shares outstanding
- basic 31,549,318 12,079,943 25,687,022 7,948,874
----------------------------------------------------------------------------
Weighted average
shares outstanding
- diluted 31,549,318 12,079,943 25,687,022 7,948,874
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Assumes conversion of Class B shares as at December 31, 2006 at a price
of $1.00 per Class A share and as at December 31, 2005 at a price of
$1.29 per Class A share.


----------------------------------------------------------------------------
Outstanding Securities Outstanding at
December 31
2006 2005
----------------------------------------------------------------------------
Class A shares 24,093,650 9,355,000
Class B shares 1,170,000 1,170,000
Stock options 2,360,000 930,000
Warrants 5,582,300 338,000
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(1) As of the date of this MD&A, there were $29,976,950 Class A and
1,170,000 Class B shares issued and outstanding.


For the three months ended December 31, 2006 and 2005, and the year ended December 31, 2006 and for the period from incorporation on June 7, 2005 to December 31, 2005, all outstanding stock options are anti-dilutive and have been excluded in calculating the diluted shares outstanding.

The Company's Class B shares are convertible, at the option of the Company, at any time after September 30, 2008 and before September 30, 2010, into Class A shares. The number of Class A shares obtained upon conversion of each Class B share will be equal to $10.00 divided by the greater of $1.00 and the then current market price of the Class A shares. If conversion has not occurred by the close of business September 30, 2010, then the Class B shares will be convertible, at the option of the shareholder, at any time after October 1, 2010 and before November 1, 2010 into Class A shares on the same basis. On November 1, 2010, all remaining Class B shares will be automatically converted to Class A shares on the same basis.



CAPITAL EXPENDITURES

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Land and seismic $ 272,914 - $ 932,059 $ 159,671
Drilling and
completions $ 7,747,376 $ 558,222 $ 20,439,722 $ 6,773,505
Equipment and
facilities $ 4,688,738 - $ 8,012,655 $ 768,234
Property
acquisitions $ (5,024) - $ 2,081,433 -
Other(1) $ 87,152 $ 18,007 $ 334,165 $ 132,022
----------------------------------------------------------------------------
Total $ 12,791,156 $ 576,229 $ 31,800,034 $ 7,833,432
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Includes capitalized general and administrative


DRILLING SUMMARY

----------------------------------------------------------------------------
Three Months Ended Year Ended
December 31 December 31
2006 2005 2006 2005
----------------------------------------------------------------------------
Gross Net Gross Net Gross Net Gross Net
----------------------------------------------------------------------------
Oil 4.0 3.0 5.0 1.8 8.0 6.2 5.0 1.8
Natural gas - - 2.0 1.5 4.0 2.5 3.0 2.3
Dry - - - - 4.0 2.2 - -
----------------------------------------------------------------------------
Total 4.0 3.0 7.0 3.3 16.0 10.9 8.0 4.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------


During the three months ended December 31, 2006, the Company participated in the drilling of 4 gross (3.0 net before payout; 2.6 net after payout) with a 100% success rate. All four wells drilled in the quarter were in the Ante Creek area.

For the year ended December 31, 2006, the Company drilled 16 gross wells (10.9 net before payout; 8.5 net after payout) with a success rate of 75 percent. The four dry holes drilled in 2006 were part of the Company's exploration program.

Due to the drilling commitments under the ARC Resources Ltd. farm-in agreement signed in Q2 of 2006 and the ability to earn a significant land position through this agreement, the majority of the 2007 capital budget will be directed to the Company's core area of Ante Creek.

LIQUIDITY AND CAPITAL RESOURCES

At December 31, 2006, the Company had a $3,250,000 revolving bank credit facility. The facility bears interest at prime plus 0.75% and is secured by a floating first charge over all of the Company's assets. While the credit facility is repayable on demand, the Company is not subject to scheduled repayments. Subsequent to December 31, 2006 the credit facility was increased to $4,000,000. At December 31, 2006, the Company had a working capital deficit of $10,945,038, including bank debt of $626,310 and was in breach of the Working Capital Ratio financial covenant under the credit facility. The Company received a waiver of the breach from the bank, conditional on the Company being in compliance with all of the covenants as of March 31, 2007. The Company has until May 30, 2007 to determine and report whether it is in compliance with these covenants. The Company expects to be in compliance with all the bank covenants at March 31, 2007. In order to eliminate the Company's substantial working capital deficit, the Company, subsequent to December 31, 2006, closed the following equity and debt financings.

In February 2007, the Company closed a private placement equity financing for gross proceeds of $5 million. As a result of the equity financing, the Company is committed to renounce $5 million of qualified Canadian exploration expenditures with an effective date of December 31, 2007. The Company has until December 31, 2008 to expend the funds on qualified exploration expenditures.

In February, 2007, the Company closed a private placement of $10 million principle amount of convertible unsecured debentures. The debentures bear interest at a rate of 9.5% per annum, payable semi-annually in arrears, are due in 2012 and are convertible at any time at the option of the debenture holder into 11,111,111 Class A common shares of the Company at a conversion price of $0.90 per share.

The Company has total capital commitments of approximately $8,131,000 relating to several farm-in and participation agreements signed with industry partners. These farm-in commitments require capital expenditures over the next twelve months. As discussed below, the Company will fund these capital requirements through internally generated cash flow from operations, bank and other forms of debt or further equity issues, where it is deemed appropriate.

The Company's cash flow and earnings are highly sensitive to changes in commodity prices, exchange rates and other factors that are beyond the control of the Company.

CRITICAL ACCOUNTING ESTIMATES

Oil and Gas Reserve Estimates

Estimates of economically recoverable oil and natural gas reserves (including natural gas liquids) and the future net cash flows therefrom are based upon a number of variable factors and assumptions, such as commodity prices, projected production from the properties, the assumed affects of regulation by government agencies and future operating costs. All of these estimates may vary from actual results. Estimates of the recoverable oil and natural gas reserves attributable to any particular group of properties, classifications of such reserves based on risk recovery and estimates of future net revenues expected therefrom, may vary. The Company's actual production, revenues, taxes, development and operating expenditures with respect to its reserves may vary from such estimates, and such variances could be material.

Ceiling Test

The ceiling test calculation is used to assess the valuation of the Company's petroleum and natural gas properties. The first part measures whether impairment has occurred based on undiscounted future cash flows using estimated future prices, costs and proved reserves. When the first part indicates impairment exists, the second part of the test measures the amount of impairment based on discounted estimated future cash flows from proved and probable reserves. The Company reviews the related estimates when it performs its ceiling test on a quarterly basis. The impact of changes in the estimates of future prices and costs applied and the quantity of proved and probable reserves on the financial statements could be material.

Unproven Properties

Costs related to unproven properties are excluded from costs subject to depletion until proved reserves have been determined or their value is impaired. These properties are reviewed quarterly based on management's estimates of future prospects and any impairment is transferred to the costs being depleted.

Stock-Based Compensation

The Company has a stock-based compensation plan which reserves shares of common stock for issuance to key employees, consultants and directors. The Company accounts for grants issued under this plan using the fair value recognition provisions whereby the cost of options granted to employees is charged to income with a corresponding increase in contributed surplus, based on an estimate of the fair value determined using the Black-Scholes option pricing model and amortized over the vesting period of the options issued.

Asset Retirement Obligations

The Company records the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the asset, normally when the asset is purchased or developed. The associated asset retirement costs are capitalized as part of the carrying amount of the long lived asset and depleted and depreciated using a unit-of-production method over the life of the estimated proved reserves. Subsequent to the initial measurement of the asset retirement obligations, the obligations are adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation.

Inherent in the fair value calculation of ARO are numerous assumptions and judgments including the ultimate settlement amounts, inflation factors, credit adjusted discount rates, timing of settlement, and changes in the legal, regulatory, environmental and political environments. To the extent future revisions to these assumptions impact the fair value of the existing ARO liability, a corresponding adjustment is made to the petroleum and natural gas properties balance.

BUSINESS RISKS

Exploration, development and production of petroleum and natural gas involves many risks that even the combination of experience and diligent evaluation may not be sufficient to overcome. Utilizing highly skilled professionals, focusing in areas where the Company has existing knowledge and expertise or access to such expertise, using the most up to date technology, and controlling costs to maximize margins, mitigate these risks. The Company maintains a comprehensive insurance program that insures liability and property consistent with good industry practices. The program is designed to mitigate risks and protect against significant loss. However, the Company is not fully insured against all these risks, nor are all such risks insurable.

The reserve and recovery information contained in the Company's independent reserve evaluation is only an estimate. The actual production and ultimate recovery of reserves from the properties may be greater or less than the estimates prepared by the independent reserve engineers. A significant portion of the Company's assets are located at the Ante Creek property whose relatively short production history may make estimates on this property more subject to revisions. The reserve report was prepared using forecasted commodity prices as determined by independent engineers. If lower prices for crude oil, natural gas liquids and natural gas are realized by the Company, the present value of the estimated future cash flows for the reserves would be reduced and such reductions could be significant.

Financial risks include exposure to fluctuation in commodity prices, currency exchange rates and interest rates. To mitigate the risks, the Company may enter into physical contracts for the sale of crude oil, natural gas liquids and natural gas at fixed prices. The Company may also institute financial hedging techniques for interest rates, currency exchange rates and commodity prices. If utilized, such transactions would be subject to certain limits on term and amount as established by the Board of Directors.

Oil and Gas Risk

Inherent in development of oil and gas reserves are risks, among others, of drilling dry holes, encountering production or drilling difficulties or experiencing high decline rates in producing wells. In addition, a major market risk exposure is in the pricing applicable to our oil and gas production. Realized pricing is primarily driven by the prevailing worldwide price for crude oil and spot prices applicable to our oil and natural gas production. Prices received for oil and gas production have been and remain volatile and unpredictable. If oil and gas prices decline significantly, even if only for a short period of time, it is possible that non-cash write-downs of our oil and gas properties could occur under the full-cost accounting method. Under these rules, we review the carrying value of our proved oil and gas properties each quarter to ensure that capitalized costs of proved oil and gas properties, net of accumulated depreciation, depletion and amortization do not exceed the "ceiling." This ceiling is the present value of estimated future net cash flows from proved oil and gas reserves, discounted at 10 percent, plus the lower of cost or fair value of unproved properties included in the costs being amortized, net of related tax effects. If capitalized costs exceed this limit, the excess is charged to additional depletion, depreciation and accretion expense. The calculation of estimated future net cash flows is based on forecasted prices for crude oil and natural gas except for volumes sold under long-term contracts. Write-downs required by these rules do not impact cash flow from operating activities; however, as discussed above, sustained low prices would have a material adverse effect on future cash flows.

Financial and Liquidity Risks

The Company anticipates that it will make substantial capital expenditures for the acquisition, exploration, development and production of oil and natural gas in the future. On an ongoing basis, the Company will typically utilize three sources of funding to finance its capital expenditure program; internally generated cash flow from operations, debt where deemed appropriate and new equity issues, if available at favourable terms.

Funds flow is influenced by many factors, which the Company cannot control, such as commodity prices, the United States versus the Canadian exchange rate, interest rates and changes to existing government regulations and tax policies. Should circumstances affect cash flow in a detrimental way, the Company may have limited ability to expand the capital necessary to undertake or complete future drilling programs. In such circumstances, the Company would be required to either reduce the level of its capital expenditures or supplement its capital expenditure program with additional debt and/or equity financing. There can be no assurance that debt or equity financing will be available or sufficient to meet these requirements or, if debt or equity is available, that it will be on terms acceptable to the Company. Moreover, future activities may require the Company to alter its capitalization significantly. The inability of the Company to access sufficient capital for its operations could have a material adverse effect on the Company's financial condition, results of operations and prospects.

Issuance of Debt

From time to time, the Company may enter into transactions to acquire assets or the shares of other corporations. These transactions may be financed partially or wholly with debt, which may increase the Company's debt levels above industry standards. Neither the Company's articles nor its by-laws limit the amount of indebtedness that the Company may incur. The level of the Company's indebtedness from time to time could impair the Company's ability to obtain additional financing in the future on a timely basis to take advantage of business opportunities that my arise.

Supply of Service and Production Equipment

The supply of service and production equipment at competitive prices is critical to the ability to add reserves at a competitive cost and produce these reserves in an economic and timely fashion. In periods of increased activity, these supplies and services can be difficult to obtain. Demand for such limited equipment or access restrictions may affect the availability of such equipment to the Company and may delay exploration and development activities. The Company attempts to mitigate this risk by developing strong long-term relationships with suppliers and contractors. There can be no assurances that these relationships will increase the availability of the supplies and services.

Related Party Transactions

A director of the Company is also a partner in a law firm which is used extensively for legal work related to the Company's activities. Fees for the legal work are charged at the law firm's standard billing rates.

Contractual Obligations and Commitments

The Company has entered into a standard daywork contract with a drilling contractor to utilize a drilling rig for a period of three years. The terms of the contract call for a minimum requirement of 250 operating days per year for a total of 750 operating days over the three-year term of the contract. The Company took delivery of the drilling rig on November 4, 2006.

As at December 31, 2006, the Company had incurred the necessary qualified exploration expenditures to satisfy the terms of the $13,000,000 of flow-through shares issued in 2005. Although the Company believes it has incurred the necessary qualifying expenditures, these amounts may be subject to audit and subsequent interpretation by the Canada Revenue Agency.

As a result of the Company issuing flow-through shares in 2006, the Company has committed to spend $5,000,000 before December 31, 2007, on qualified Canadian Exploration Expenses. The total spent on qualified Canadian Exploration Expenses to December 31, 2006 was approximately $1,862,000.

The Company has entered into several farm-in and participation agreements to explore for and develop petroleum and natural gas properties on lands of industry partners. Total remaining capital commitments as of December 31, 2006 relating to these agreements is approximately $8,131,000. In January 2007, the Company spend approximately $1,335,000 of the this commitment with the remaining commitment to be spent throughout 2007.

The Company has entered into a five year office lease agreement commencing on April 1, 2006. The following table outlines the Company's estimated remaining lease commitments over the life of the agreement:



----------------------------------------------------------------------------
2007 2008 2009 2010 2011 Total
----------------------------------------------------------------------------
Lease payments $ 169,316 $ 173,800 $ 174,921 $ 178,284 $ 44,851 $ 741,172
----------------------------------------------------------------------------
----------------------------------------------------------------------------


GUARANTEES AND OFF-BALANCE SHEET ARRANGEMENTS

The Company has not entered into any off-balance sheet arrangements or guarantees.

SUMMARY OF QUARTERLY RESULTS

The following table summarizes certain quarterly financial information relating to the Company since its' inception:



----------------------------------------------------------------------------
2006
Q1 Q2 Q3 Q4
----------------------------------------------------------------------------
Production revenue
before royalties $ 674,496 $ 655,831 $ 594,130 $ 1,082,723
Funds flow from
operations (1)(2) $ 354,432 $ 294,709 $ 279,917 $ 152,382
Funds flow per share
- basic (1)(2) $ 0.02 $ 0.02 $ 0.01 $ 0.01
Funds flow per share
- diluted (1)(2) $ 0.02 $ 0.02 $ 0.01 $ 0.01
Net income (loss) $ 89,204 $ 578,792 $ (105,355) $ (793,791)
Net income (loss) per
share - basic (2) $ 0.01 $ 0.03 $ 0.00 $ (0.03)
Net income (loss) per
share - diluted (2) $ 0.01 $ 0.03 $ 0.00 $ (0.03)
Total assets $ 17,386,000 $ 21,865,189 $ 27,433,823 $ 40,518,063
Total debt - $ 2,506,446 $ 500,000 $ 626,310
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
2005
--------------------------
Q3 Q4
----------------------------------------------------------------------------
Production revenue before royalties - $ 331,611
Funds flow from operations (1)(2) $ (42,552) $ 179,576
Funds flow per share - basic (1)(2) $ (0.03) $ 0.01
Funds flow per share - diluted (1)(2) $ (0.03) $ 0.01
Net income (loss) $ (103,592) $ (158,933)
Net income (loss) per share - basic (2) $ (0.08) $ 0.01
Net income (loss) per share - diluted (2) $ (0.08) $ 0.01
Total assets $ 2,491,859 $ 14,171,866
Total debt $ 750,000 -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Funds flow from operations and funds flow from operations per share are
non-GAAP measures.

(2) As a result of the issuance of Class B shares as part of the Company's
initial public offering, the Class B share must be converted to Class A
shares to calculate net income per share and funds flow per share
numbers. Due to methodology of the Class B share conversion, the
addition of the quarter's net income per share and funds flow per share
numbers may not reconcile to the year to date, per share numbers.


OUTLOOK

The Company's capital budget for 2007 will be approximately $15 million. The majority of the 2007 capital budget will be allocated to completion of the ARC farm-in program and fulfilling the Company's remaining 2007 flow-through commitment of approximately $3.2 million. At Ante Creek south the Company will initiate construction of an oil battery and gas compression facility to handle volumes from the southern exploration wells, and to facilitate a development program on these lands in early 2008. The Company has a drilling inventory of 15 to 30 wells on the southern lands.

Sierra Vista continues to be very excited about the future potential of the Ante Creek, Montney light oil resource play. The land base which the Company is earning will provide for a multi-year inventory of low risk, development drilling. The Company's optimization efforts to date have resulted in significantly reduced capital costs, and the productivity of the wells continue to meet and/or exceed expectations. With the completion of the earning phase of the drilling program, and the construction of the first phase of a facility to service the southern lands, the Company will be well positioned to begin exploiting the significant upside of this resource play.

DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures have been designed to ensure that information required to be disclosed by the Company is accumulated and communicated to the Company's management as appropriate to allow timely decisions regarding required disclosure. The Company's Chief Executive Officer and Chief Financial Officer have concluded, based on their evaluation as of the end of the year ended December 31, 2006, that the Company's disclosure controls and procedures, as defined in Multilateral Instrument 52-109 - Certification of Disclosure in Issuers' Annual and Interim Filings, are effective to provide reasonable assurance that material information related to the Company is made known to them and was recorded, processed, summarized and reported within the time periods under applicable securities legislation.

INTERNAL CONTROLS OVER FINANCIAL REPORTING

Management is also responsible for the design of internal controls over financial reporting ("ICFR") within the Company in order to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with Canadian GAAP.

The Company has conducted a review and evaluation of its ICFR with the conclusion that as at December 31, 2006 the Company's system of ICFR as defined under MI 52-109 is sufficiently designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the Company's GAAP. In its evaluation, the Company identified certain material weaknesses in internal controls over financial reporting:

a) Due to the limited number of staff at Sierra Vista, it is not feasible to achieve the complete segregation of incompatible duties;

b) Due to the limited number of staff, the Company relies upon third parties as participants in the company's ICFR.

The Company believes these weaknesses are mitigated by: the active involvement of senior management and oversight by the board of directors in all the affairs of the Company; open lines of communication within the Company; present levels of activities and transactions within the Company being readily transparent; the thorough review of the Company's financial statements by management and the board of directors; and the establishment of whistle-blower and code of conduct policies. However, these mitigating factors will not necessarily prevent the likelihood that a material misstatement will not occur as a result of the aforementioned weaknesses in the Company's internal controls over financial reporting. A system of internal controls over financial reporting, no matter how well conceived or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.

Management has evaluated whether there were changes to its ICFR during the quarter ended December 31, 2006 that have materially affected, or are reasonably expected to materially affect, its ICFR. No such changes were identified.

ADDITIONAL INFORMATION

Additional information relating to the Company is filed on the SEDAR website at www.sedar.com. Also, information can also be obtained by contacting the Company at Sierra Vista Energy Ltd., 850, 101 - 6th Avenue S.W., Calgary, Alberta, T2P 3P4 or by email at info@sierravista.ca. Information is also accessible on the Company's website at www.sierravista.ca.

CAUTIONARY STATEMENT REGARDING FORWARD LOOKING INFORMATION

Some of the statements contained herein including, without limitation, financial and business prospects, financial outlooks, and production forecasts may be forward-looking statements which reflect management's expectations regarding future plans and intentions, growth, results of operations, performance and business prospects and opportunities. In particular, this news release contains forward-looking statements pertaining to the quality of reserves, oil and natural gas production levels, capital expenditure programs, projections of market prices and costs, supply and demand for oil and natural gas; and expectations regarding the Company's ability to raise capital and to continually add to reserves through acquisitions and development.

The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this news release including uncertainty of reserve estimates, volatility in market prices for oil and natural gas, liabilities and risks inherent in oil and natural gas operations, uncertainties associated with estimating reserves, competition for, among other things, capital, acquisitions or reserves, undeveloped lands and skilled personnel, geological, technical, drilling and processing problems.

Words such as "may", "will", "should", "could", "anticipate", "believe", "expect", "intend", "plan", "potential", continue" and similar expressions have been used to identify these forward-looking statements. These statements reflect management's current expectations and are based on uncertainties. Although the forward-looking statements contained within this news release are based upon what management believes to be reasonable assumptions, management cannot assure that actual results will be consistent with these forward-looking statements. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances unless required under applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent ("BOE") basis, natural gas volumes have been converted to BOE using a ratio of 6,000 cubic feet of natural gas to one barrel of oil equivalent. This conversion ratio is based upon energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE figures may be misleading, particularly if used in isolation.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this statement.

Contact Information

  • Sierra Vista Energy Ltd.
    Mr. Mark A. Malouin
    President & CEO
    (403) 265-9393 ext 201
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Mr. Bruce A. Stewart
    Chief Financial Officer
    (403) 265-9393 ext 205
    (403) 265-9224 (FAX)
    or
    Sierra Vista Energy Ltd.
    Suite 850, 101-6th Avenue SW
    Calgary, Alberta T2P 3P4