Twoco Petroleums Ltd.
TSX VENTURE : TWO

Twoco Petroleums Ltd.

April 19, 2007 18:55 ET

Twoco Petroleums Ltd. 2006 Highlights and 2007 Update

CALGARY, ALBERTA--(CCNMatthews - April 19, 2007) - Twoco Petroleums Ltd. ("Twoco") (TSX VENTURE:TWO) is pleased to announce financial and operating results for 2006 and an update of its 2007 activities.

Twoco has filed the following documents on the System for Electronic Document Analysis and Retrieval (SEDAR):

1. Annual information form for the year ended December 31, 2006, which includes the disclosure and reports relating to reserves data and other oil and gas information required pursuant to National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators; and

2. Audited consolidated financial statements as at and for the year ended December 31, 2006, together with the notes thereto and the report of the auditors thereon; and

3. Management's discussion and analysis of financial condition and results of operations for the year ended December 31, 2006.

Copies of these documents may be obtained via SEDAR at www.sedar.com.

Highlights of 2006 include:

- Increase in reserves to 2,141,833 boe on a proved basis and 3,125,550 boe on a proved plus probable basis (24% and 33% increases, respectively, from 2005).

- Average production of 950 boe/d - a 36% increase from 2005;

- Participation in the drilling of 26 gross (23.7 net) wells;

- Petroleum and natural gas sales revenue of $12,898,939 - a 2% decrease from 2005 (a result of a 28% drop in the price for natural gas to $6.19/mcf in 2006 from $8.64/mcf in 2005);

- Cash flow from operations of $7,915,494 ($0.52 per share);

- Net Income of $772,128 ($0.05 per share);

- Capital expenditures of $19,744,467;

- Increase in land position to 122,425 gross (85,213 net) acres;

- Finding and development costs (includes future development costs) of $14.21 per boe on a proved basis and $10.77 per boe on a proved plus probable basis;

- Operating costs of $3.73 per boe;

- Operating netback of $25.26 per boe;

- General and administrative expenses of $1.93 per boe; and

- Working capital surplus of $1,250,250 as of December 31, 2006.

Highlights of Twoco's anticipated 2007 work program and summary of operations for the year to date include:

- Approval of a $18,940,000 capital budget;

- Participation in the drilling of 27 net wells - all targeting natural gas;

- In the first quarter of 2007, Twoco participated in the drilling of 9 gross (9.0 net) wells that resulted in 7 gross (7.0 net) wells being cased for potential natural gas production and two gross (2.0 net) wells were dry and abandoned. Initial production from the natural gas wells is anticipated in the second and third quarters of this year;

- Current production of approximately 1,100 boe per day; and

- Twoco estimates current behind pipe production capability of 600 boe per day.

Twoco is an oil and gas company engaged in the exploration for, and the acquisition, development and production of, oil and natural gas reserves primarily in the Province of Alberta. Twoco currently has 15,259,806 common shares issued and outstanding as at today's date.

In this news release the calculation of barrels of oil equivalent (boe) is calculated at a conversion rate of 6,000 cubic feet (Mcf) of natural gas for one barrel (Bbl) of oil based on an energy equivalency conversion method. boes may be misleading particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1Bbl is based on an energy equivalency conversion method primarily applicable to the burner tip and does not represent a value equivalency at the wellhead.

Forward Looking Statements:

Certain information set forth in this news release contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Twoco's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Twoco's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking-statements will transpire or occur, or if any of them do so what benefits Twoco will derive therefrom. Twoco disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by securities laws.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy securities in any jurisdiction.

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

Contact Information

  • Twoco Petroleums Ltd.
    Wayne A. Malinowski
    President and Chief Executive Officer.
    (403) 231-8653
    (403) 237-6048 (FAX)