TUSCANY ENERGY LTD.
TSX VENTURE : TUS

TUSCANY ENERGY LTD.

November 18, 2011 16:20 ET

Tuscany Energy Ltd. Announces Financial Results for the Nine Months Ended September 30, 2011 and Announces SEPAC Presentation

CALGARY, ALBERTA--(Marketwire - Nov. 18, 2011) - Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to report that the Company's production rate for the third quarter was 313 Boed (94% oil) which is double the rate of the prior year period. The increase in production resulted from the completion of a four well Dina development program prior to the third quarter at Evesham and a three well program during the quarter.

The three new wells on production during the quarter were located at Evesham, Macklin and Lloydminster, and funded from available cash on hand. As Tuscany did not draw on its bank line during the quarter, the Company is continuing with the additional drilling of four wells in the fourth quarter.

Of note, was the Company's drilling of a horizontal well at Macklin, Saskatchewan, which was placed on production September 18, 2011, and has steadily produced in excess of 100 barrels of oil per day (55 bopd net), to date. Tuscany is currently drilling two offset wells to this well in November and anticipates a further development program on the property if results warrant.

For the nine months ended September 30, 2011, revenues increased 71% to $3.6 million compared with $2.1 million, cash flows from operations increased by 312% to $1.4 million compared with $340,000 and net earnings increased to $162,000 compared with a net loss of $637,000.

Tuscany incurred $4.8 million of net capital expenditures during the nine month period compared with $1.7 million for the prior year period. At September 30, 2011, Tuscany had working capital of $856,000 compared with net debt of $4.2 million at the beginning of the year.

As of November 17th the remaining investment, 426,195 Magnum Hunter shares, was worth approximately $1.98 million.

Improved revenues and cash flows from operations were the result of the Q2 and Q3 drilling program which added seven new heavy oil wells.

Financial and Operating Results

To view the table associated with this press release, please visit the following link:

http://www.marketwire.com/library/20111118-tus.jpg

For further information on Tuscany's third quarter results please review the Company's Financial Statements and MDA filed on SEDAR at www.sedar.com or the view the Company's Interim Q3 2011 report found on the Company's website at www.tuscanyenergy.com.

Tuscany wishes to announce that it is giving a corporate presentation at the SEPAC 2011 Fall Investor Showcase in Calgary on Monday, November 21st at 11:00 a.m. (MST). A copy of the presentation will be posted to the Tuscany website.

ADVISORY: Certain information in this news release, including drilling plans and projected drilling, completion and equipping costs, and production rates from the Evesham and Macklin fields may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhaustive.

The forward looking statements contained in this press release are made as of the date hereof and Tuscany undertakes no obligations to update publicly or revise any forward looking statements or 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) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Tuscany Energy Ltd.
    Robert W. Lamond
    Chairman & CEO
    (403) 269-9889
    (403) 269-9890 (FAX)

    Tuscany Energy Ltd.
    Donald K. Clark
    Vice President Operations
    (403) 269-9889
    (403) 269-9890 (FAX)
    www.tuscanyenergy.com