Traverse Energy Ltd.

November 10, 2010 18:30 ET

Traverse Energy Announces 2010 Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 10, 2010) - Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents financial and operating results for the nine months ended September 30, 2010. Unless otherwise stated, the volume conversion of natural gas to barrel of oil equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural gas being equal to 1 barrel of oil.

(unaudited) Three months ended Nine months ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
2010 2009 2010 2009

Financial ($
thousands, except
per share amounts)
Revenue $ 331 $ 120 $ 951 $ 401
Net loss (461) (515) (915) (545)
Per share - basic
and diluted (0.02) (0.02) (0.03) (0.03)
Funds flow from
operations(i) 86 31 159 156
Net capital
expenditures 1,314 259 4,401 500
Total assets 12,503 7,918 12,503 7,918
Shareholders' equity 10,633 7,061 10,633 7,061
Working capital 3,045 4,089 3,045 4,089
Common shares
(millions) 29.4 20.9 29.4 20.9
Weighted average
(millions) 29.4 20.9 26.5 16.2

Operations (Units as
Production (BOE/d) 103 47 90 48
Natural gas (Mcf
per day) 419 228 352 238
Oil and NGL (bbls
per day) 33 9 31 8
Average sale price
Natural gas
($/Mcf) 3.55 3.09 3.98 4.05
Oil and NGL
($/bbl) 67.93 62.11 70.89 55.37

(i)Management uses funds flow from operations (before changes in non-cash working capital) to analyze operating performance. Funds flow as presented does not have any standardized meaning prescribed by Canadian Generally Accepted Accounting Principles and therefore may not be comparable with the calculation of similar measures for other entities.

Operations Review

All of the Company's oil and gas properties are located in Alberta. During the third quarter, Traverse participated in the drilling of 2 gross (1.5 net) oil wells in the Turin area and expanded its infrastructure. This expansion included pipelining existing wells into a central battery site and adding capacity for incremental wells. The facilities expansion will provide for a more efficient tie in and resulting production from new wells. In the Manyberries area the Company re-entered an existing wellbore to test a potential natural gas zone. The well tested at a low natural gas rate and will be abandoned. Undeveloped land holdings at September 30, 2010 totaled 169,000 gross (160,000 net) acres.

Subsequent to the third quarter, Traverse drilled a 100% working interest oil well in the Long Coulee area. The well was placed on production November 9, 2010 and is expected to produce at the allowable rate of 125 BOE/day. In early November Traverse spudded a 2,200 meter horizontal well at Manyberries targeting Jurassic oil. New production from the wells at Turin and Long Coulee are expected to increase average company production to approximately 250 BOE per day. Oil production will now represent over 70% of Traverse's production.

Traverse's 2010 drilling program to date includes 8 gross (6.9 net) wells. This has resulted in 3.9 net oil wells, 1 net natural gas well, 1 potential natural gas well and 2 dry holes. Traverse will continue to focus on oil and liquids rich natural gas targets. Traverse is also evaluating its existing lands for potential oil prospects on the developing Southern Alberta Bakken play. Traverse's drilling plans for the remainder of 2010 include a 100% working interest well to be drilled at Carbon on a gas/oil prospect and 2 wells (1.75 net) to be drilled at Turin.

Forward-looking information

This press release contains forward-looking information. Forward-looking information is based upon the opinions, expectations and estimates of management as at the date the information is provided and, in some cases, information received from or disseminated by third parties. In particular, the Company's statements with respect to facilities expansion at Turin, expected production at Turin and Long Coulee and planned drilling at Carbon and Turin for the remainder of 2010 contain forward-looking information. This forward-looking information is subject to a variety of substantial known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking information. The Company's Annual Information Form filed with securities regulatory authorities (accessible through the SEDAR website describes the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of the content of this release.

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