Triton Energy Corp.
TSX VENTURE : TEZ

Triton Energy Corp.

August 23, 2007 16:01 ET

Triton Announces Second Quarter 2007 Results

CALGARY, ALBERTA--(Marketwire - Aug. 23, 2007) - Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) announces financial and operating results for the three and six months ended June 30, 2007. Triton has filed its unaudited financial statements for the three and six months ended June 30, 2007 and the accompanying Management's Discussion and Analysis with Canadian securities regulatory authorities. These filings are available for review at www.sedar.com and on the Corporation's website, www.tritonenergy.ca.

Highlights of the Second Quarter of 2007

- Triton participated in the drilling of 1.5 net wells resulting in 1.0 net successful operated natural gas well and 0.5 net non-operated dry hole.

- One (0.9 net) natural gas well was tied-in during June.

- An additional 4,970 net acres of undeveloped land were acquired, increasing the Corporation's undeveloped land position to approximately 63,420 net acres.

- Capital expenditures totaled approximately $3 million.

- Petroleum and natural gas sales totaled $1.66 million and funds from operations totaled $706,000.

- Triton ended the quarter with working capital of approximately $2.1 million.

- The Corporation's credit facility was increased to $2.3 million and Triton remains debt free.

- The Corporation's average production for the quarter was 418 boe per day and current production is approximately 800 boe per day.



Financial Summary

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Three months ended Six months ended
June 30, June 30,
2007 2006 2007 2006
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Financial ($000's except for (unaudited) (unaudited) (unaudited) (unaudited)
per share amounts)
Petroleum and natural gas
sales 1,656 - 4,409 -
Funds from (used in)
operations(1) 706 (235) 1,951 (372)
Per share basic & diluted(1) 0.03 (0.01) 0.07 (0.02)
Net earnings (loss) (154) (115) (326) (274)
Per share basic & diluted(2) (0.01) (0.01) (0.01) (0.01)
Working capital 2,091 7,109 2,091 7,109
Capital expenditures(3) 3,030 2,703 8,531 3,828
Total assets 26,672 17,998 26,672 17,998
Shareholders' equity 22,009 14,915 22,009 14,915
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Notes
(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 June 30, 2007 there were 2,550,000 options to purchase common shares
and 300,000 non-transferable common share purchase warrants outstanding
that have not been included in the calculation of the weighted average
shares outstanding as the effect would be anti-dilutive.
(3) Excludes asset retirement obligations.


Operating Summary

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Three months ended Six months ended
June 30, June 30,
2007 2006 2007 2006
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Operating
Production
Crude oil (bbls per day) 8 - 11 -
Natural gas (mcf per day) 2,458 - 3,201 -
BOE per day (6:1) 418 - 544 -
Average realized price
BOE (per boe, 6:1) $ 43.56 $ - $ 44.74 $ -
Netback per boe (6:1)
Petroleum and natural gas
sales $ 43.56 $ - $ 44.74 $ -
Royalties, net of ARTC $ (9.32) $ - $(10.95) $ -
Operating expenses $ (6.66) $ - $ (6.45) $ -
Transportation expenses $ (1.54) $ - $ (1.62) $ -
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Operating netback $ 26.04 $ - $ 25.72 $ -
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The Corporation's production decline in the second quarter is essentially attributable to two things. Firstly, competitive drainage issues affected one of the Corporation's wells in the Inland area where production from the Corporation's 16-06-052-16W4 well decreased from an average of 405 boe per day in the first quarter to an average of 164 boe per day in the second quarter. Secondly, extremely wet weather hampered field operations and delayed tie-ins.

The balance of the Corporation's wells produced at comparable rates to the first quarter, albeit a minor amount of oil at Giroux Lake was temporarily shut-in due to trucking issues related to the wet weather. The Corporation did manage to tie-in one (0.9 net) natural gas well during the quarter at Sullivan Lake, which was put on production in early June.

Outlook

With the wet second quarter behind us, field operations have been proceeding and current production has been increased to approximately 800 boe per day from 10 (9.6 net) operated wells and two (0.5 net) non-operated wells. The bulk of the Corporation's current production comes from two areas, Sullivan Lake and Inland.

At Sullivan Lake, Triton has four (3.9 net) operated natural gas wells currently producing approximately 280 boe per day. The Corporation also has 7,715 net acres of undeveloped land in the area on which four additional 100% working interest drilling locations have been seismically and geologically identified to date.

At Inland, Triton has three net operated natural gas wells currently producing approximately 465 boe per day. The Corporation also has 3,570 net acres of undeveloped land in the area on which two additional 100% working interest drilling locations have been seismically and geologically identified to date.

The balance of the Corporation's current production, approximately 55 boe per day, comes from three (2.75 net) operated oil wells at Giroux Lake and Lloydminster along with two (0.5 net) non-operated natural gas wells at Girouxville.

Triton's business plan contemplates drilling up to nine (8.5 net) additional wells in the second half of 2007, including one potentially high impact test well in the Willesden Green area where the Corporation has a non-operated 50% participating interest. This potentially high impact test well, targeting natural gas in the Banff formation, is scheduled to spud before the end of August.

On a go forward basis, the Corporation plans to utilize four sources of funding to finance its capital expenditures program: working capital; internally generated cash flow from operations; new equity issues if available on favorable terms; and, when deemed appropriate, debt. Triton had approximately $2.1 million in working capital at June 30, 2007 and remains debt free. The Corporation also has $2.3 million available through a credit facility.

The Corporation's management and board of directors are cognizant of the current situation in the equity and debt markets and will continue to monitor the situation.

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 and funding thereof, wells to be drilled, timing of drilling of wells and commencement of production from wells. 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.

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.

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