Triton Energy Corp.

Triton Energy Corp.

March 30, 2007 16:01 ET

Triton Announces 2006 Financial and Operating Results

CALGARY, ALBERTA--(CCNMatthews - March 30, 2007) - Triton Energy Corp. (TSX VENTURE:TEZ) ("Triton" or the "Corporation") announces financial and operating results for the year and three months ended December 31, 2006. Triton has filed its audited consolidated financial statements for the years ended December 31, 2006 and 2005, and the accompanying Management's Discussion and Analysis with Canadian securities regulatory authorities. These filings are available for review at and on the Corporation's website,

2006 Highlights

- The Corporation drilled its first wells, tied-in its first production, generated its first revenue from operations and established its first petroleum and natural gas reserves.

- Triton participated in the drilling of nine (7.18 net) wells resulting in six (4.43 net) successful natural gas wells, one (0.75 net) successful light oil well and two dry holes.

- The Corporation commenced commercial production in the fourth quarter resulting in $1.95 million in petroleum and natural gas sales and positive funds from operations totaling $326,000 for the fourth quarter.

- Triton averaged 130 boe per day of production for the year and 516 boe per day for the fourth quarter.

- The Corporation found its first petroleum and natural gas reserves which, according to a year-end evaluation prepared by AJM Petroleum Consultants ("AJM") in accordance with National Instrument ("NI") 51-101, totaled 446,000 boe on a total proved basis and 583,000 boe on a total proved plus probable basis at December 31, 2006 using AJM's forecast price and cost assumptions.

- Based on total reserve additions of 631,000 boe, finding and development ("F&D") costs were $18.02 per boe ($19.41 including future development costs) on a total proved plus probable basis and approximately $16,000 per flowing boe per day. On a total proved basis, F&D costs were $23.03 ($24.80 including future development costs). Most of the future development costs pertaining to Triton's 2006 reserves have now been incurred. The Corporation had no petroleum or natural gas reserves in 2005 or 2004 so prior year comparisons are non-applicable.

- Triton increased its land holdings by 11.5% to 54,080 net acres of undeveloped land in Alberta.

- Capital expenditures totaled $11.5 million for the year of which $4.2 million was spent in the fourth quarter.

- On November 1, 2006 the Corporation closed a bought deal private placement financing for gross proceeds of $4.0 million by issuing 3,137,256 common shares on a flow-through basis at $1.275 per flow-through common share.

- Triton expanded its exploration department during 2006 with the addition of two senior geologists, and the Corporation also successfully recruited Brian R. Cumming, P.Eng. as Vice President, Engineering and Gordon S. Bakarich, P.Eng. as Manager, Operations, the latter of whom was promoted to Vice President, Operations in the first quarter of 2007.

Financial Summary

Year Ended Three Months Ended
December 31, December 31,
2006 2005 2006 2005
Financial ($000's except for per (unaudited) (unaudited)
share amounts)
Petroleum and natural gas sales 1,952 - 1,952 -
Funds from (used in) operations(1) 326 (651) 859 (224)
Per share basic & diluted(1)(2) 0.01 (0.07) 0.04 (0.01)
Net earnings (loss) (637) (744) (174) (244)
Per share basic & diluted(2) (0.03) (0.08) (0.01) (0.02)
Working capital 4,049 11,262 4,049 11,262
Capital expenditures 11,508 5,098 4,164 661
Total assets 23,353 16,765 23,353 16,765
Shareholders' equity 18,670 16,026 18,670 16,026

(1) Funds from (used in) operations is a non-GAAP term and the Corporation
calculates this measure as cash provided from operations before changes
in non-cash operating working capital.

(2) At December 31, 2006 there were 2,200,000 options to purchase common
shares and 300,000 non-transferable common share warrants outstanding
that have not been included in the calculation of the weighted average
shares outstanding as the effect would be anti-dilutive.

Operating Summary

Year Ended Three Months Ended
December 31, December 31,
2006 2005 2006 2005
Crude oil (bbls per day) - - - -
Natural gas (mcf per day) 780 - 3,094 -
BOE per day (6:1) 130 - 516 -
Average realized price
BOE (per boe, 6:1) $ 41.15 $ - $ 41.15 $ -
Netback per boe (6:1)
Petroleum and natural gas sales $ 41.15 $ - $ 41.15 $ -
Royalties, net of ARTC $ (8.87) $ - $ (8.87) $ -
Operating expenses $ (5.89) $ - $ (5.89) $ -
Transportation expenses $ (1.49) $ - $ (1.49) $ -
Operating netback $ 24.90 $ - $ 24.90 $ -

Selected Reserves Information (1)

Total proved 2006 2005
Oil and NGL (mbbls) 37 -
Natural gas (mmcf) 2,457 -
Total (mboe) 446 -
% Natural gas 92% -
Total proved plus probable
Oil and NGL (mbbls) 71 -
Natural gas (mmcf) 3,074 -
Total (mboe) 583 -
% Natural gas 88% -

(1) The Corporation's reserves were independently evaluated by AJM Petroleum
Consultants (AJM) as of December 31, 2006 in accordance with NI 51-101.
Additional information on the Corporation's reserves can be found in the
Annual Information Form ("AIF") on SEDAR at or the
Corporation's website at


Triton has a 2007 capital program of $21.3 million, which is expected to include drilling up to 20 wells. To date in 2007, the Corporation has drilled seven (6.43 net) operated wells resulting in four (3.48 net) natural gas wells one (0.75 net) well currently under evaluation and two dry holes. Triton plans to tie-in at least three (2.68 net) of the aforementioned successful wells during the second quarter, following spring break-up, and drill up to thirteen (10.9 net) additional wells in 2007.

The Corporation expects first quarter 2007 production to average 680 to 700 boe per day with an estimated 200+ boe of additional daily production awaiting evaluation and tie-in. On a risked basis, Triton's 2007 capital program is anticipated to result in a 2007 average production rate of 900 to 1,100 boe per day and lead to a projected 2007 exit production rate of 1,300 to 1,500 boe per day.

Triton is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are listed on the TSX Venture Exchange under the trading symbol "TEZ".

Forward-Looking Statements

This news release may include forward-looking statements including opinions, assumptions, estimates and management's assessment of future plans and operations, budgeted capital expenditures, wells to be drilled, timing of drilling of wells, timing of completion and tie-in of wells and commencement of production from wells and expected production levels. When used in this document, the words "anticipate," "believe," "estimate," "expect," "intent," "may," "project," "plan", "should" and similar expressions are intended to be among the statements that identify forward-looking statements. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Corporation believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to, risks associated with oil and gas exploration, development, exploitation, results from testing, production, marketing and transportation, the volatility of oil and gas prices, currency fluctuations, the ability to implement corporate strategies, the state of domestic capital markets, the ability to obtain financing, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, changes in oil and gas acquisition and drilling programs, delays resulting from inability to obtain required regulatory approvals, delays resulting from inability to obtain drilling rigs and other services, delays in tie-in operations, results from testing, environmental risks, competition from other producers, imprecision of reserve estimates, changes in general economic conditions and other factors more fully described from time to time in the reports and filings made by Triton with securities regulatory authorities. Readers are cautioned not to place undue reliance on forward-looking statements, as no assurances can be given as to future results, levels of activity or achievements. Except as required by applicable securities laws, the Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Finding and development costs are calculated by dividing the sum of exploration and development costs incurred in the most recent financial year plus the change during the most recent financial year in estimated future development costs relating to the reserves in question, by the reserve additions being considered (being proved or proved and probable reserves) on a boe basis. The aggregate of the exploration and development costs incurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserve additions for that year.

Disclosure provided herein in respect of barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. A boe conversion ratio of 6,000 cubic feet of natural gas to 1 barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Triton Energy Corp.
    Michael S. Zuber
    President & CEO
    (403) 266-5541 Ext. 222
    (403) 266-5579 (FAX)
    Triton Energy Corp.
    Dean J. Schultz
    Vice President, Finance & CFO
    (403) 266-5541 Ext. 229
    (403) 266-5579 (FAX)