Waldron Energy Corporation
TSX : WDN

Waldron Energy Corporation

March 12, 2012 07:00 ET

Waldron Energy Corporation Announces Preliminary Fourth Quarter Financial Information and Operational Update

CALGARY, ALBERTA--(Marketwire - March 12, 2012) - Waldron Energy Corporation ("Waldron" or the "Corporation") (TSX:WDN) is pleased to provide preliminary fourth quarter summary information and announce the drilling of two horizontal Belly River light oil wells at Ferrybank.

During the fourth quarter of 2011, Waldron produced an average of 2,810 boepd (26% oil and liquids), realized $4.2 million in funds from operations, exited with $29.2 million drawn on its credit facilities of $41 million, exited with $5.8 million working capital deficiency (excluding debt) and had a ratio of 2.1 to 1 net debt to annualized fourth quarter funds from operations. Waldron will release its full 2011 Audited Financial Statements and related Management's Discussion and Analysis, 2011 Reserves Report, 2011 Annual Information Form and corporate update on March 30, 2012.

Waldron has drilled its first horizontal Belly River light oil well at Ferrybank and has spud the second Belly River light oil well from the same drill pad. The first well was drilled with a horizontal leg of approximately 1,000 meters with over 80% of the leg having greater than 15% in porosity in the Belly River oil zone. Waldron expects both wells will be completed, tested and on continuous production in April 2012. The Corporation has over twenty potential follow-up locations in the Belly River oil pool at Ferrybank.

The Corporation originally budgeted on drilling a second Glauconite gas well at Crystal given the success of the first liquids rich well. However, due to strong oil prices and recent favorable industry Belly River oil results in Pembina, Waldron revised its plans and is in the process of drilling the two Belly River horizontal light oil wells which could be put on production sooner than the Crystal well.

Investor Information

Waldron is a Calgary, Alberta based corporation engaged in the exploration, development and production of petroleum and natural gas. The Corporation's common shares are currently listed on the TSX under the trading symbol "WDN." Information regarding Waldron, including an updated corporate presentation, can be found at the Corporation's website at www.waldronenergy.ca. Additional information regarding Waldron is available under the Corporation's profile at www.sedar.com.

Forward-Looking and Cautionary Statements

This news release contains forward-looking statements relating to the Corporation's plans and other aspects of the Corporation's anticipated future operations, strategies, financial and operating results and business opportunities. These forward-looking statements may include opinions, assumptions, estimates, management's assessment of value, reserves, future plans and operations.

Forward-looking statements typically use words such as "will," "anticipate," "believe," "estimate," "expect," "intend," "may," "project," "should," "plan," and similar expressions suggesting future outcomes, and include statements that actions, events or conditions "may," "would," "could," or "will" be taken or occur in the future. Specifically, this press release contains forward-looking statements relating to the results and timing of operations; number of follow-up locations; and whether or not recent industry results are favorable. The forward-looking statements are based on various assumptions including expectations regarding the success of current or future drill wells; the outlook for petroleum and natural gas prices; estimated amounts and timing of capital expenditures; estimates of future production; assumptions concerning the timing of regulatory approvals; the state of the economy and the exploration and production business; results of operations; business prospects and opportunities; future exchange and interest rates; the Corporation's ability to obtain equipment in a timely manner to carry out development activities; and the ability of the Corporation to access capital and credit. While the Corporation considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward-looking statements are subject to a wide range of assumptions, known and unknown risks and uncertainties and other factors that contribute to the possibility that the predicted outcome will not occur, including, without limitation: risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation; loss of markets; volatility of commodities prices; currency fluctuations; imprecision of reserves estimates; environmental risks; competition from other producers; inability to retain drilling rigs and other services; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; general economic conditions; delays resulting from or inability to obtain required regulatory approvals and to satisfy various closing conditions; and ability to access sufficient capital from internal and external sources. Readers are cautioned that the foregoing list of factors is not exhaustive.

Although Waldron believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements and you should not rely unduly on forward-looking statements. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by applicable law, Waldron does not undertake any obligation to publicly update or revise any forward-looking statements.

Note Regarding Non-IFRS Financial Measures

Funds from operations is not a recognized measure under IFRS as issued by the International Accounting Standards Board ("IASB"). Management believes that in addition to net earnings, funds from operations is useful supplemental measures as they demonstrate the Corporation's ability to generate the cash necessary to fund future growth through capital investment or repay debt if incurred in future periods. Investors are cautioned, however, that this measure should not be construed as an alternative to cash flow from operating activities or net earnings determined in accordance with IFRS as an indication of the Corporation's performance. The Corporation's method of calculating this measure may differ from other entities and, accordingly, it may not be comparable to measures used by other entities. For these purposes, the Corporation defines funds from operations as cash flow from operations before changes in non-cash operating working capital, financing expenditures related to the costs of acquisitions and decommissioning expenditures. Net debt is defined as current assets less current liabilities.

Note Regarding BOEs

The term barrel of oil equivalent ("boe") may be misleading, particularly if used in isolation. A conversion ratio for gas of 6 mcf:1 boe is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

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