Twoco Petroleums Ltd.
TSX VENTURE : TWO

Twoco Petroleums Ltd.

April 16, 2009 18:34 ET

Twoco Petroleums Ltd. 2008 Highlights and 2009 Update

CALGARY, ALBERTA--(Marketwire - April 16, 2009) - Twoco Petroleums Ltd. ("Twoco") (TSX VENTURE:TWO) is pleased to announce financial and operating results for 2008 and an update of its 2009 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, 2008, 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 ("NI 51-101");

2. Audited financial statements as at and for the year ended December 31, 2008, 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, 2008.

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

Highlights of 2008 include:

- Acquisition in September of certain natural gas assets located in the Tofield area of Alberta for total net cash consideration of $11.5 million after interim closing adjustments and related costs (the "Tofield Property");

- Average production of 1,365 boe per day, which includes production from the Tofield Property - a 14% increase from 2007;

- Participation in the drilling of 16 gross (13.8 net) wells;

- Petroleum and natural gas sales revenue growth to $20,109,466 - a 29% increase from 2007;

- Cash flow from operations of $11,064,947 ($0.74 per share) - a 36% increase from 2007;

- Net Income of $773,723 ($0.05 per share) compared to a loss of $856,367 in 2007 (loss of $0.06 per share);

- Capital expenditures, which includes the acquisition of the Tofield Property, of $20,473,390;

- Current land position of 140,419 gross (105,322 net) acres;

- Operating costs of $6.49 per boe;

- Operating netback of $29.50 per boe compared to $22.97 per boe in 2007;

- General and administrative expenses of $2.04 per boe; and

- Finding and development costs (includes future development costs) of $11.28 per boe on a proved basis and $9.59 per boe on a proved plus probable basis.

Highlights of Twoco's anticipated 2009 work program and summary of operations for the year to date include:

- Approval of a $5,700,000 capital budget which represents a significant reduction versus previous years and reflects current natural gas prices. Also, in response to the current low natural gas prices, Twoco will review its capital budget on a regular basis and will make amendments as required;

- Participation in the drilling of 15 net wells - all targeting natural gas;

- In the first quarter of 2009, Twoco participated in the drilling of 1 gross (0.2 net) well that resulted in 1 gross (0.2 net) well being cased for potential natural gas production. Initial production from this gas well is anticipated in the second quarter of 2009;

- Current production of approximately 1,550 boe per day; and

- Twoco estimates current behind pipe production capability of 200 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 14,941,406 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 six thousand 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 or information, including statements regarding Twoco's capital budget, participation in the drilling of wells, the timing of production and behind pipe production capability. 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, operational risks in exploration and development, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and the ability to access sufficient capital from internal and external sources. Although Twoco believes that the expectations in our forward-looking statements are reasonable, our forward-looking statements have been based on factors and assumptions concerning future events which may prove to be inaccurate. Those factors and assumptions are based upon currently available information. Such statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward looking information. As such, readers are cautioned not to place undue reliance on the forward looking information, as no assurance can be provided as to future results, levels of activity or achievements. The risks, uncertainties, material assumptions and other factors that could affect actual results are discussed in our Annual Information Form and other documents available at www.sedar.com. Furthermore, the forward-looking statements contained in this document are made as of the date of this document and, except as required by applicable law, Twoco does not undertake any obligation to publicly update or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.

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

Neither 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

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