Tuscany Energy Ltd.
TSX VENTURE : TUS

Tuscany Energy Ltd.

August 30, 2011 09:00 ET

Tuscany Reports Initial Net Sales in Excess of 300 Barrels Per Day from Evesham Field, and Files Financials for Six Months Ended June 30, 2011

CALGARY, ALBERTA--(Marketwire - Aug. 30, 2011) - Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to report that at the time of writing, the Company's net share of production sales from its Evesham, Saskatchewan heavy oil field has exceeded 300 barrels per day. The increase in production results from the recent completion of a four well Dina development program, and represents initial rates, before normal declines commence.

On June 2nd, the Company completed a business combination with Sharon Energy Ltd. Tuscany acquired all of the issued and outstanding common shares of Sharon in exchange for 62.1 million Tuscany shares. As a result of the business combination Tuscany's balance sheet at June 30, 2011, showed working capital of $2.6 million, a liquid investment in Magnum Hunter 546,195 shares, and an available bank line of $4.6 million. This financial strength is now being utilized to accelerate the timing of the heavy oil development program at Evesham, Saskatchewan.

The four recently drilled Evesham development wells came on stream in July, with average flush production rates of approximately 90 barrels per day (54 bopd net) for each well. These wells have significantly increased Tuscany's Evesham Dina pool production and will also have a positive impact on the Company's third and fourth quarter financial results.

Financial and Operating Results

(Thousands, except shares and per share amounts, unaudited)
Six months ended June 30 2011 2010
Financial
Revenue $ 1,850 $ 1,407
Cash flow from operations* 665 283
per share, diluted 0.01 0.01
Loss for the period (432 ) (276 )
per share, diluted (0.01 ) 0.00
Comprehensive earnings (loss) for the period 2,728 (276 )
Net capital additions 1,611 999
Working Capital (Net Debt) 2,613 (3,549 )
Total assets 24,673 11,083
Total shares outstanding at period end (millions) 124.9 55.2
Operations
Production
Oil (Bopd) 145 112
Gas (Mcfd) 133 160
BOEd (6 Mcf = 1 Bbl) 167 139
Product Prices
Oil ($/Bbl) $ 66.72 $63.49
Gas ($/Mcf) $ 3.82 $4.45

For further information on Tuscany's first 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 Q2 2011 report found on the Company's website at www.tuscanyenergy.com.

ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations 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, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, 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 exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

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