Triton Energy Corp.

Triton Energy Corp.

November 20, 2009 18:10 ET

Triton Announces Third Quarter 2009 Results

CALGARY, ALBERTA--(Marketwire - Nov. 20, 2009) - Triton Energy Corp. ("Triton" or the "Corporation") (TSX VENTURE:TEZ) announces financial and operating results for the three and nine months ended September 30, 2009. Triton has filed its interim financial statements for the three and nine months ended September 30, 2009 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,

Highlights of the Third Quarter of 2009

- Production increased by approximately 3% year-over-year to average 816 boe per day compared to 795 boe per day during the third quarter of 2008.

- The Corporation's realized sales price for petroleum and natural gas was 62% lower compared to the third quarter of 2008, the results of which are reflected in the Corporation's petroleum and natural gas sales, funds from operations and net income (loss).

- Petroleum and natural gas sales were $1.5 million compared to $3.7 million in the third quarter of 2008.

- Funds from operations were $3,530 ($0.00 per share basic and diluted) compared to $1.9 million ($0.05 per share basic and diluted) in the third quarter of 2008.

- The Corporation had a net loss of $1.3 million ($0.03 per share basic and diluted) compared to net income of $0.3 million ($0.01 per share basic and diluted) in the third quarter of 2008.

- Capital expenditures totaled $0.5 million (2008 - $4.4 million), of which $0.1 million was spent on drilling and completions, $0.2 million on land and seismic and $0.2 million on facilities.

Financial Summary
Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Financial ($000's except for
per share amounts) (unaudited) (unaudited) (unaudited) (unaudited)
Petroleum and natural gas
sales 1,452 3,700 6,049 11,261
Funds from operations (1) 4 1,891 1,137 5,416
Per share basic &
diluted(1)(2) 0.00 0.05 0.03 0.15
Net earnings (loss) (1,336) 283 (3,208) 587
Per share basic &
diluted(2) (0.03) 0.01 (0.08) 0.02
Working capital deficiency (7,891) (5,660) (7,891) (5,660)
Capital expenditures (3) 513 4,441 6,519 11,813
Total assets 36,056 36,808 36,056 36,808
Shareholders' equity 22,592 24,257 22,592 24,257


(1) Funds from 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 September 30, 2009 there were 3,675,000 options to purchase common
shares and 900,000 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
(3) Excludes asset retirement obligations and dispositions.

Operating Summary

Three months ended Nine months ended
September 30, September 30,
2009 2008 2009 2008
Average production volumes
Petroleum & NGL (bbls/day) 39 20 51 28
Natural gas (mcf/day) 4,658 4,645 5,019 4,577
BOE/day 816 795 888 791

Operating netback (per boe)
Sales price $ 19.35 $ 50.61 $ 24.97 $ 51.98
Royalties (2.63) (10.20) (4.43) (10.58)
Operating expenses (9.68) (7.79) (9.18) (9.01)
Transportation expenses (1.72) (1.81) (1.77) (1.80)
Operating netback $ 5.32 $ 30.81 $ 9.59 $ 30.59


With natural gas prices forecast to improve in 2010, Triton intends to direct its near-term capital expenditures towards a low-risk, potential high impact development project at Newton in west-central Alberta.

Newton is one of the Corporation's two core areas. Triton has 14 sections (8,960 gross and net acres) of contiguous lands at Newton and is currently producing approximately 460 boe per day from four 100-per-cent working interest vertical wells.

The Alberta Energy Resources Conservation Board has recently approved the Corporation's application for down spacing to two wells per section at Newton. Preparations are underway to shoot a proprietary 3-D seismic program over a substantial portion of Triton's lands in the area, which is expected to be completed early in 2010.

Following a favourable evaluation of the 3-D seismic data, Triton plans to drill a 100-per-cent working interest horizontal well at Newton utilizing multi-stage fracture completions. With three successful 100-per-cent working interest vertical wells into the target formation, management considers this a lower-risk, potential high impact development project with a reserves target of 2 to 3 billion cubic feet of natural gas per well and an initial production rate target of 2.5 to 3 million cubic feet of natural gas per day per well. Initial production rates from the Corporation's two producing vertical wells remained essentially flat for the first nine to twelve months.

There are currently three additional contingent development locations on Triton-owned lands at Newton for additional horizontal wells utilizing multi-stage fracture completions.

The Corporation is also continuing to evaluate potential merger and acquisition opportunities to augment internal growth and provide increased shareholder liquidity, stronger cash flows and a broader investment appeal.

An updated presentation is available for viewing at the Corporation's website,

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 and Cautionary Statements

This news release may include forward-looking statements including opinions, assumptions, estimates and management's assessment of future plans and operations, natural gas prices, timing of seismic operations, drilling plans, reserves and initial production rate targets and potential merger and acquisition opportunities. Reserves targets and initial production rate targets as provided herein are not an estimate of reserves or of production rates that may actually be achieved. They represent the volumes used by the Corporation for internal budget preparation. 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, 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.

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

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