Welton Energy Corporation
TSX : WLT
TSX : WLT.DB

Welton Energy Corporation

May 14, 2008 12:07 ET

Welton Energy Corporation Announces 2008 First Quarter Financial and Operating Results

CALGARY, ALBERTA--(Marketwire - May 14, 2008) - Welton Energy Corporation (TSX:WLT) (TSX:WLT.DB) is pleased to present its financial and operating results for the three months ended March 31, 2008.



Operational and Financial Highlights

Three months ended
March 31 Change
----------------------------------------------------------------------------
2008 2007 %
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Average Daily Production
----------------------------------------------------------------------------
Crude oil (bbls/d)
----------------------------------------------------------------------------
Heavy oil 249 540 (54)
----------------------------------------------------------------------------
Light oil 32 52 (38)
----------------------------------------------------------------------------
Natural gas liquids (bbls/d) 54 29 86
----------------------------------------------------------------------------
Natural gas (Mcf/d) 1,615 1,978 (18)
----------------------------------------------------------------------------
Total (boe/d)(2) 604 951 (36)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wells completed (gross/net)
----------------------------------------------------------------------------
Natural Gas 1/0.5 -
----------------------------------------------------------------------------
Oil - 2/0.4
----------------------------------------------------------------------------
Dry - 1/0.2
----------------------------------------------------------------------------
Total 1/0.5 3/0.6
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Undeveloped land holdings
----------------------------------------------------------------------------
Gross acres 129,968 138,885 (6)
----------------------------------------------------------------------------
Net acres 56,271 53,847 5
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil and gas revenues ($000s) 3,368 3,836 (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Funds flow from operations(1) ($000s) 527 1,055 (50)
----------------------------------------------------------------------------
Per share - basic ($) 0.01 0.03 (67)
----------------------------------------------------------------------------
Per share - diluted ($) 0.01 0.03 (67)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Income (loss) ($000s) (694) (911) (24)
----------------------------------------------------------------------------
Per share - basic ($) (0.01) (0.02) (50)
----------------------------------------------------------------------------
Per share - diluted ($) (0.01) (0.02) (50)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital expenditures ($000s) 1,179 1,335 (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Shares outstanding (000s)
----------------------------------------------------------------------------
Weighted average - basic 49,836 41,961 19
----------------------------------------------------------------------------
Weighted average - diluted 49,836 41,961 19
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Funds flow as presented (before changes in non-cash working capital)
does not have any standardized meaning prescribed by Canadian GAAP and
therefore it may not be comparable with the calculation of similar
measures for other entities.
(2) Boe may be misleading, particularly if used in isolation. In accordance
with National Instrument 51-101, a boe conversion rate for natural gas
of 6 mcf to 1 bbl has been used. This ratio is based on an energy
equivalency conversion method primarily applicable at the burner tip
and does not represent a value equivalency of the representative
commodity at the wellhead.


Message to Shareholders

Herewith is our report on the operations and financial position of Welton Energy Corporation for the quarter ending March 31, 2008.

HIGHLIGHTS:

- At Trutch, in northeast British Columbia, 3D seismic has identified multiple locations both on earned lands and option lands. There are 19 sections under agreement on this project. Having already drilled three wells and earned nine drilling spacing units in Q4 2007, Welton has elected to drill the first option well on these lands. Welton has options to drill an additional two wells following the first option well, to earn a 45% working interest in three drilling spacing units per option well drilled.

- At Chime, a farmout arrangement has been finalized with an industry partner that will see a well drilled on this prospect in the summer of 2008.

- At Ricinus, a well was drilled in 2007 that encountered a faulted Cardium zone, resulting in two zones to be completed. The first zone was completed and produced for its incentive period. The second zone is to be completed after break-up and will be produced for its incentive period, after which both zones will be placed on production. New additional Ricinus drilling locations have been identified.

- Waterflood response at Brazeau continues. Newly acquired 3D seismic has provided encouragement that this project may be somewhat larger than initially thought. Further evaluation work is being conducted.

- At Karr, 120 boe per day of production that was lost for an extended period due to a line break has been brought back on at the end of the first quarter.

- Q1 cash flow was lower than anticipated due to reservoir performance at Mantario, a plant shut down at Chime and the line break at Karr. Natural gas prices are rebounding and oil prices continue at high levels.

OUTLOOK:

As previously announced, Welton has engaged Tristone Capital Partners to help in exploring strategic alternatives. In our view, it remains important to increase the size of our company as we go forward so as to be better prepared for continued growth and strength in the market place. In its Overview Memorandum, Tristone has assessed a net asset value of $0.73 per share for Welton's common stock.

In the interim, capital expenditures will be allocated only to those projects determined key to the overall plan.



Respectfully submitted on behalf of the Board of Directors,


Signed by Donald A. Engle

Donald A. Engle
President and C.E.O
May 8, 2008


Management's Discussion and Analysis

The following discussion and analysis has been prepared by management and reviewed and approved by the Board of Welton Energy Corporation ("Welton" or the "Company"). The following supplementary information provides a review of the financial results of the Company based, subject to the foregoing, upon accounting principles generally accepted in Canada. Its focus is primarily a comparison of the financial performance for the three months ended March 31, 2008 and 2007 and should be read in conjunction with the unaudited financial statements and accompanying notes included in this report and the December 31, 2007 and 2006 audited financial statements and accompanying notes included in the Company's 2007 Annual Report. This discussion and analysis is based on information available to May 8, 2008. All amounts are in thousands of Canadian dollars, except for per share and per boe amounts, or unless otherwise noted.

Non-GAAP Measurements

In the Management's Discussion & Analysis ("MD&A") references are made to terms commonly used in the oil and gas industry that are not defined by generally accepted accounting principals ("GAAP") in Canada and are referred to as non-GAAP measures. Such non-GAAP measures should not be considered an alternative to, or more meaningful than, GAAP measures as indicators of the Company's financial or operating performance. The non-GAAP measures presented are not standardized measures and therefore may not be comparable to the calculation of similar measures for other entities. The following non-GAAP measures are used in this MD&A:

1) "Funds flow from operations" and "funds flow" equal funds flow from operations before changes in non-cash working capital related to operating activities. The reconciliation between net income and funds flow from operations can be found in the Consolidated Statements of Cash Flows. The Corporation also presents "funds flow per share", whereby funds flow from operations is divided by the weighted average number of shares outstanding over the period to determine per share amounts.

2) "Netbacks" equal total revenue per boe less royalties per boe and operating costs per boe.

Natural gas reserves and volumes are converted to barrels of oil equivalent (boe) on the basis of six thousand cubic feet (mcf) of gas to one barrel (bbl) of oil. Boes may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf to 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

MD&A of financial results and operations is presented by management of Welton Energy Corporation to review operating activities and financial results for the three month period ended March 31, 2008 with comparisons to the three month period ended March 31, 2007. The MD&A has been prepared in accordance with GAAP.

Forward-Looking Statements

This report contains certain "forward-looking statements" within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "plan", "expect", "estimate", "believe" and other similar words, or statements that certain events or conditions "may" or "will" occur. By their nature, forward-looking statements involve assumptions and are subject to a variety of risks and uncertainties, including, but not limited to, those associated with resource definition, the possibility of project cost overruns or unanticipated costs and expenses, regulatory approvals, fluctuating oil and gas prices, and the ability to access sufficient capital to finance future development, reservoir performance and drilling results. Although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements as a result of new information, future events or otherwise, subsequent to the date of this report. The reader is cautioned not to place undue reliance on forward-looking statements.

Additional information relating to the Company can be found on its website at www.weltonenergy.com or through the SEDAR system at www.sedar.com.

First Quarter 2008 Highlights

- Completed a successful gas well at Trutch in January 2008, with options to drill and complete additional wells in the area;

- Brought back on stream lost production at Karr following a pipeline rupture;

- Increased netback to $24.36/boe compared to $22.77/boe for the first quarter of 2007, an increase of 7%;

- Realized average sales prices 36% higher than those in the prior year's first quarter; and

- Increased net undeveloped acreage position to 56,271 net acres, an increase of 5% over 2007.

Production

For the first quarter of 2008, the Company produced a total of 604 boe/d from over 45 wells in Alberta and Saskatchewan. Heavy and light crude oil production represented 47% of Welton's total production base, with most oil production coming from its heavy oil field in Mantario, Saskatchewan. Crude production in Mantario was negatively affected in the first quarter by sand inflow problems resulting in a major production decrease at a key oil well. A new pump was installed in the first quarter of 2008 to address the problem and production partially resumed towards the end of the quarter. By contrast, for the same period in 2007, Welton had production of 951 boe/d with approximately 62% of its production from crude oil.

Declines in natural gas in the first quarter of 2008 resulted from the shut-in of a key well at Karr during the fourth quarter of 2007 due to a pipeline leak. This well returned to production late in the first quarter of 2008 at rates near 100 boe/d (net).

The Company is continuing work at its Brazeau Nisku I waterflood project where, month over month, the production continues to show decreasing gas to oil ratios, with total first quarter production averaging 72 boe/d.



The following table sets out the average daily production values.

Three months ended
March 31 Change
2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Crude oil (bbl/d)
----------------------------------------------------------------------------
Heavy oil 249 540 (54)
----------------------------------------------------------------------------
Light oil 32 52 (38)
----------------------------------------------------------------------------
Natural gas liquids (bbl/d) 54 29 86
----------------------------------------------------------------------------
Natural gas (mcf/d) 1,615 1,978 (18)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total boe/d 604 951 (36)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Commodity Prices

The following table represents relevant quarterly average commodity price
benchmarks:

Three months ended
March 31 Change
----------------------------------------------------------------------------
2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Crude Oil
----------------------------------------------------------------------------
West Texas Intermediate ("WTI" - US$/bbl) 97.87 57.87 69
----------------------------------------------------------------------------
Hardisty Heavy oil (Cdn$/bbl) 70.05 42.50 65
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Natural Gas
----------------------------------------------------------------------------
AECO (Cdn$/Mcf) 7.96 7.42 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Overall crude oil prices increased dramatically throughout the first quarter with an average WTI price of US$97.87/bbl. This was up 35% from $72.24/bbl at year-end and up 69% from $57.87 during the same period last year. Heavy oil prices were up 65% to $70.05/bbl versus $42.50/bbl in the first quarter of the prior year and $44.72/bbl at year-end.

The Company's financial results are significantly influenced by fluctuation in commodity prices and the US/Canadian dollar exchange rate. Throughout the first quarter of 2008, the US dollar continued to weaken relative to the Canadian dollar. As sales revenue is denominated in or referenced to US dollars, the reported Canadian dollar revenues realized decrease as the US dollar weakens, which explains why the Company did not realize the full extent of the gains in WTI in the first quarter of 2008.

Benchmark natural gas prices (AECO Hub in Alberta) for the first quarter have risen 7%, from $7.42/mcf in 2007 to $7.96/mcf.



Average Realized Sales Prices Three months ended
March 31 Change
----------------------------------------------------------------------------
2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Heavy oil ($/bbl) 66.93 40.31 66
----------------------------------------------------------------------------
Light oil ($/bbl) 97.33 65.62 48
----------------------------------------------------------------------------
Natural gas ($/mcf) 8.34 7.85 6
----------------------------------------------------------------------------
Natural gas liquids ($/bbl) 68.35 64.28 6
----------------------------------------------------------------------------
Total ($/boe) 61.13 44.80 36
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Company's average realized sales price increased 36% to $61.13/bbl for the first quarter compared to the same period in 2007. The 6% increase in natural gas liquids prices and 48% increase in light oil prices are primarily attributable to the record highs in crude oil pricing throughout 2007 and continuing into 2008. The realized prices for the first quarter were comparable to the relevant benchmark prices, although the average realized heavy oil price remains lower than the benchmark due to the rising cost of diluent required to meet pipeline specifications. The Company did not hedge any of its 2008 production and currently does not have any of its future production hedged.



Revenue

Production Revenue Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Heavy oil 1,518 1,958 (22)
----------------------------------------------------------------------------
Light oil 284 310 (8)
----------------------------------------------------------------------------
Natural gas 1,225 1,398 (12)
----------------------------------------------------------------------------
Natural gas liquids 335 170 97
----------------------------------------------------------------------------
Total(1) 3,362 3,836 (12)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Total production revenue excludes sulphur revenue.


For the three months ended March 31, 2008 the Company's production revenue decreased 12% to $3,362 versus $3,836 for the same period of 2007. This decrease in total revenue, caused by reduced production, was partially offset by increases in the Company's overall realized prices. For the first quarter of 2008, the Company realized a netback of $24.36/boe representing a 7% increase versus $22.77/boe during the same period in 2007. Realized prices increased by 36% compared to the same quarter of 2007 but were virtually completely offset by higher per barrel of oil equivalent royalty and production expenses.

Royalties

Royalties for the Company include all royalties to provincial governments, freeholders and other overriding royalties. As a percentage of revenue, royalties for the first quarter of 2008 are 29% versus 27% in 2007. Overall royalty rates increased during 2008, corresponding with the higher overall commodity prices realized as royalty rates rise with increases in such pricing. However, these rates were higher than expected due to prior period heavy oil royalties recorded in the first quarter, resulting from an adjustment of the Company's working interests.

Royalty Regime

On October 25, 2007, the Alberta government released the details of a new royalty framework in response to the Alberta Royalty Review Panel's report. Under the proposed changes, the value of the Company's total proved plus probable reserves could be reduced by up to 15%, largely at the Brazeau Waterflood. During the fourth quarter of 2007, the Company submitted an application for deep well royalty relief for the Brazeau waterflood project under the Unintended Consequences provisions of the proposed royalty regime. A meeting was held in April with no relief offered but an opportunity to re-submit was presented and the Company is in the process of preparing a revised application. Although the Company's total reserves will not change by volume, this application, if successful, could mitigate all but approximately 2-3% of the reductions in total reserve value.

The effect of the Alberta royalty changes on Welton will be determined based on the actual legislation enacted, the production rates, commodity prices and product mix after January 1, 2009.

Operating expenses

Unit operating expenses increased in the first quarter of 2008 as a result of decreased production volumes throughout the quarter without corresponding decreases in fixed operating costs. As a result, lower production volumes contributed to total fixed costs being distributed amongst relatively smaller production volumes, resulting in higher per boe operating costs in the quarter.

Consequently, operating expenses increased from $10.13/boe and $17.15/boe in the first and fourth quarters of 2007 respectively, to $19.24/boe in the first quarter of 2008. Further sand inflow problems in Mantario were corrected with the installation of a new pump and increased operating costs were incurred in bringing the Karr 10-15 well back onto production. The effect of these initiatives was an increase of first quarter operating costs of approximately $4.55/boe.



Three months ended
Netbacks March 31 Change
----------------------------------------------------------------------------
($/boe) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Oil, NGL and natural gas revenue 61.13 44.80 36
----------------------------------------------------------------------------
Royalty expense 17.53 11.90 47
----------------------------------------------------------------------------
Production expenses 19.24 10.13 90
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Netback 24.36 22.77 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Royalty as percentage of revenue (%) 29 27 7
----------------------------------------------------------------------------
----------------------------------------------------------------------------

General and Administrative

Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands, except per boe amounts) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
General and administrative 602 470 28
----------------------------------------------------------------------------
Overhead recoveries and capitalized overhead (88) (70) 26
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net 514 400 29
----------------------------------------------------------------------------
Per boe 9.35 4.67 100
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Stock-based compensation expense 49 85 (42)
----------------------------------------------------------------------------
Per boe 0.89 0.99 (10)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total expense 563 485 16
----------------------------------------------------------------------------
Total per boe 10.23 5.66 81
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Net general and administrative costs (excluding non-cash stock-based compensation expense) totaled $514 for the first quarter of 2008 compared to $400 during the same quarter of 2007, an increase of 29%. This increase was primarily attributable to an increase in personnel as well as increased office rent charges and costs associated with IT systems upgrades. Overhead recoveries and capitalized overhead of $88 were recognized in the first quarter of 2008 which is an increase of 26% (2007 - $70) from the same quarter of the prior year. Capitalized overhead is recognized for technical staff dedicated to the Company's capital program and geological reviews of new core areas.

For the first quarter of 2008, on a per boe basis, general and administrative expenses (excluding non-cash stock based compensation) increased by 100% to $9.35 per boe from $4.67 per boe in 2007 due primarily to lower production volumes in the quarter.

Stock-based compensation expense is the amortization over the vesting period of the fair value of stock options granted to employees, directors and key consultants of the Company. The fair value of all options granted is estimated at the date of grant using the Black-Scholes option pricing model. The non-cash compensation expense for the three months ended March 31, 2008 decreased to $49 compared to $85 for the same period in 2007. The decrease is due in part to the cancellation of options of former employees and in part to options expiring unexercised prior to the first quarter of 2008. Subsequent to March 31, 2008, 635 stock options were granted to employees and certain consultants of the Company at an exercise price of $0.37 per share.



Interest and Financing Charges

Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Interest and loan fees on bank loan 41 24 71
----------------------------------------------------------------------------
Interest on debentures 209 207 1
----------------------------------------------------------------------------
Amortization of debenture issue costs 31 31 -
----------------------------------------------------------------------------
Accretion of debentures 37 37 -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total interest and financing charges 318 299 6
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Company incurred $318 of interest and financing charges in the first quarter of 2008 versus $299 in the same period of the prior year. Interest and loan fees increased by 71% as a result of the higher average outstanding balance drawn on the Company's credit facility throughout the first quarter of 2008.

Also included in interest and financing is the amortization of financing charges related to the debenture offering as well as the non-cash accretion of the debt portion of the debentures. This is discussed further in the liquidity and capital resources section of the MD&A.



Depreciation, Depletion and Accretion

Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands, except per boe amounts) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Depletion and depreciation 1,556 2,366 (34)
----------------------------------------------------------------------------
Per boe 28.30 27.51 3
----------------------------------------------------------------------------
Accretion expense 36 40 (10)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Per boe 0.65 0.47 38
----------------------------------------------------------------------------
----------------------------------------------------------------------------


For the quarter ending March 31, 2008, depletion and depreciation expense for the Company's oil and gas properties amounted to $1,556 (2007 - $2,366) or $28.30 (2007 - $27.51) per boe. The overall decrease in depletion expense is attributable to lower production. The higher depletion rate per boe is primarily a result of adding higher cost proved reserve additions than in previous periods.

Accretion expense for the quarter ended March 31, 2008 was $36 compared to $40 for the same quarter of 2007. At March 31, 2008, the Company has recorded an asset retirement obligation of $1,704, an increase of 1% from $1,685 at December 31, 2007 (March 31, 2007 - $1,455). This amount is the net present value of the total future asset retirement costs of $3,167, an increase of $4 from $3,163 at December 31, 2007 (March 31, 2007 - $2,163). The total costs were determined by management based on the Company's working interest in its wells and facilities, estimated costs to abandon and reclaim those wells and facilities and the estimated timing of the costs to be incurred in future periods. The liability has increased compared to the same period of the prior year due to wells added from drilling as well as revisions to the estimated abandonment costs and the timing of abandonment activities recognized during 2007. Also, increasing costs from oil field service providers contributed to the increased obligation. The asset retirement obligation has decreased from $1,685 at December 2007 due to the settlement of liabilities during the first quarter offset by the increase due to accretion.

Income Taxes

The Company has $28 (2007 - $42) in current income tax expense for the first quarter relating entirely to Saskatchewan resource surcharge. The Company has no other current income taxes because it has the ability to utilize its non-capital loss carry forwards, which as of March 31, 2008 totaled $14,280. A valuation allowance was recorded against some of the loss carry forwards at December 31, 2007 as the Company cannot demonstrate that it is more likely than not that these assets will be realized by the application of these losses to reduce or eliminate taxes on taxable income during the carry forward period. These losses will expire over four years from 2008 to 2011.

As at March 31, 2008, the Company has in addition to its non-capital losses, Canadian exploration expenses of $2,720 available for future deduction, Canadian development expenses of $5,636, Canadian oil and gas property expenses of $5,903 and undepreciated capital costs of $12,399 available for future deduction.

On December 13, 2007 the Federal government substantively enacted a reduction of the federal corporate tax rate to 15% effective January 1, 2012. These rate reductions were recorded as future tax recoveries in the fourth quarter of 2007. In the first quarter of 2008, the increase in future tax liability was due primarily to the recording of the future tax impact on flow-through share renouncements of $6,969. At a current tax rate of 30.08%, this resulted in an increase of the Company's future tax liability of $1,914 with a corresponding charge to share capital.

Income (Loss)

Net loss for the three months ended March 31, 2008 was $694 versus $911 in 2007. Compared to the same quarter in the prior year, higher realized prices, lower depletion costs and higher future income tax recoveries were offset by higher production costs, interest and financing charges and reduced production volumes and resulted in a lower net loss compared to the prior year's first quarter.



Capital Expenditures

Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands, except per boe amounts) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Exploration drilling and completions 853 242 252
----------------------------------------------------------------------------
Development drilling and completions 43 201 (79)
----------------------------------------------------------------------------
Production equipment 71 721 (90)
----------------------------------------------------------------------------
Land and seismic 134 143 (6)
----------------------------------------------------------------------------
Other 78 28 179
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total 1,179 1,335 (12)

----------------------------------------------------------------------------
----------------------------------------------------------------------------


For the first quarter of 2008, a total of $1,179 in capital was spent versus $1,335 for the comparative period in 2007. In the first quarter of 2008, $853 was spent on exploration drilling and related almost entirely to the completion of a well at Trutch, British Columbia. Development drilling costs of $43 in the first quarter were for three wells drilled in the third quarter of 2007 at the Company's Mantario heavy oil property in Saskatchewan. Production equipment costs of $71 were primarily incurred for the tie-in of the Ricinus 14-6 well that came on production in late October. The Company also spent approximately $134 on land and seismic during the quarter, mostly attributable to the 3D seismic purchased at Brazeau. Other capital expenditures include lease rentals and preliminary transaction costs and totaled $78 for the quarter.

Liquidity and Capital Resources

Liquidity

The Company generally relies on operating cash flows and the bank loan to fund capital requirements and provide liquidity. From time to time, the Company accesses capital markets to meet its additional financing needs and to maintain flexibility in funding its capital programs. Future liquidity depends primarily on cash flow generated from operations, existing credit facilities and the ability to access debt and equity markets. It is management's belief that the Company continues to have access to all the necessary financing resources to fund its capital expenditure plans and meet its obligations in 2008.

On March 24, 2008, the Company appointed Tristone Capital Inc. with a mandate to act as exclusive financial advisor to assist in exploring strategic alternatives to address the repayment of the Company's Convertible Debentures.

Convertible Debentures

On February 27, 2006, Welton issued to all of its shareholders one right for each share held to acquire 8% Convertible Debentures ("debentures"). For every 3,667 rights, a shareholder was entitled to acquire one debenture in the principal amount and price of one thousand dollars. The total amount of the debenture issue was $10.5 million. The debentures are convertible into common shares at a conversion price of $1.55 per common share. The debentures mature on January 15, 2009, and as such have been reclassified as current. No conversions occurred in 2007 or to date in 2008.

The debentures have been classified as debt, net of the fair value of the conversion feature at the date of issue, which has been classified as part of shareholders' equity. The value of the debt was calculated as the present value of the principal and interest payments with the remainder of the value attributed to the conversion feature and recorded as equity. The debt portion of the debentures is accreted up to its full face value by the end of the debenture term. The accretion is recorded as non-cash interest and financing charges on the statement of operations and deficit. The financing charges related to the debenture offering have been offset against the convertible debenture balance and are being amortized to interest and financing charges over the life of the debentures.

Flow-through Equity Financing

On May 10, 2007, the Company issued 4,167 common shares at $0.86 per share, which are eligible for Canadian Exploration Expenses on a flow-through basis. On May 15, 2007, the Company closed an additional financing for 400 common shares on identical terms. Total net proceeds for both offerings, after agents' fees and issue costs was $3,707. Directors of the Company subscribed to a combined total of $1,185 of these flow through shares.

On December 7, 2007, the Company issued 2,247 common shares at $0.68 per share, which are eligible for Canadian Exploration Expenses on a flow-through basis. On December 21, 2007, the Company closed an additional financing for 1,061 common shares on identical terms. Total net proceeds for both offerings, after agents' fees and issue costs was $2,061.

Common shares of the Company trade on the Toronto Stock Exchange (TSX) under the symbol WLT. As at May 8, 2008, the Company had 49,836 common shares outstanding. The debentures trade on the TSX under the symbol WLT.DB. Up to 6,774 common shares are issuable on the conversion of the $10,500 of Convertible Debentures.

Note Financings and Banking Facility

At March 31, 2008, the Company had in place a demand credit facility of $7,000 of which $4,570 had been utilized. This demand loan facility bears interest at bank prime rate plus 0.25%, and is collaterized by a $25,000 fixed charge Debenture and a floating charge over all assets of the Company. At March 31, 2008, Welton was in compliance with all of its lending covenants.

For the first quarter of 2008 the Company's sources of cash totalled $4,323 versus cash requirements of $4,323, and as of March 31, 2008 the cash on hand was nil. The Company intends to finance the remainder of its planned capital program through funds generated from operations.



Funds Flow

Three months ended
March 31 Change
----------------------------------------------------------------------------
($ thousands) 2008 2007 (%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Sources
----------------------------------------------------------------------------
Funds flow from operations 527 1,055 (50)
----------------------------------------------------------------------------
Increase in bank loan 3,796 800 375
----------------------------------------------------------------------------
----------------------------------------------------------------------------
4,323 1,855 133
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Uses
----------------------------------------------------------------------------
Oil and natural gas property expenditures 1,179 1,335 (12)
----------------------------------------------------------------------------
Working capital 3,144 520 505
----------------------------------------------------------------------------
----------------------------------------------------------------------------
4,323 1,855 133
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(Decrease)/Increase in cash - - -
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Working Capital

On March 31, 2008, the Company had negative working capital of $16,503 versus negative working capital of $5,571 at December 31, 2007. The increase in the negative position is primarily due to the reclassification of the convertible debentures as current combined with the increase of amounts drawn on the bank line. These increases are partly offset by a reduction of payables during the first quarter.



Contractual Obligations

The Company's contractual obligations and commitments as at March 31, 2008
are comprised of the following:

Expected Payment Date
----------------------------------------------------------------------------
($ thousands) 2008 2009/10 2011/12 2013+ Total
----------------------------------------------------------------------------
Asset Retirement obligations 27 895 34 748 1,704
----------------------------------------------------------------------------
Convertible debentures - 10,500 - - 10,500
----------------------------------------------------------------------------
Flow-through share obligations 1,519 - - - 1,519
----------------------------------------------------------------------------
Office Rent 121 121 101 - 344
----------------------------------------------------------------------------
----------------------------------------------------------------------------
1,667 11,516 135 748 14,067
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Company has obligations to renounce qualifying tax deductions under the flow-through share agreements it has entered into. The Company has an obligation to incur qualifying expenditures totaling $2,250 during 2008 to meet the flow-through share obligations resulting from its December 2007 flow-through share issuance. As at March 31, 2008 the Company has satisfied $731 of this obligation. As a result, the Company has until the end of 2008 to incur additional qualifying expenditures totaling $1,519 to meet its flow-through share obligations. Part XII.6 tax is owed at the government's prescribed rate on any expenditures not incurred before the end of February 2008.

As a result of a corporate acquisition in 2005, the Company assumed a commitment for a Net Profits Interest Agreement ("NPI") for the Brazeau River waterflood project. The Company's costs to be deducted from revenues in calculating the NPI include the Corporation's share of capital and operating costs and overhead expenses. Costs not recovered in a period are carried forward to subsequent periods until recovered, plus applicable interest. The NPI is non-recourse and is thus restricted to only net profits from the Brazeau River waterflood property, and no other assets of the Company. The NPI is treated like all other royalties and is not a liability of the Company, but is included in the calculation of reserves.

The Company is not aware of any incident or situation of an environmental nature that could lead to costs of a legal or remedial nature that could have a material impact on the Company's operations or financial situation.

Related Party Transactions

The Company had no significant related party transactions in the first quarter of 2008.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements.

Accounting Policies and Critical Accounting Estimates

The Company's significant accounting policies are summarized in note 2 to the Company's audited consolidated financial statements for the years ending December 31, 2007 and 2006. Certain of these policies are recognized as critical because in applying these policies, management is required to make judgments, assumptions and estimates that have a significant impact on the financial results of the Company.

Full Cost Accounting

Welton follows the Canadian Institute of Chartered Accountants ("CICA") Accounting Guideline 16 on full cost accounting in the oil and gas industry to account for oil and gas properties. Under this method, all costs including internal costs and asset retirement costs, directly associated with the acquisition of, exploration for and development of natural gas and crude oil reserves are capitalized on a cost-centre basis and costs associated with production are expensed. The capitalized costs, including estimated future development costs are depreciated, depleted and amortized using the unit-of-production method based on estimated proved reserves.

Oil and Gas Reserves

Reserves estimates and revisions to those reserves although not reported as part of the Company's financial statements, can have a significant impact on net earnings as a result of their impact on depletion, and depletion rates, asset retirement obligations, asset impairments and purchase price allocations. In adherence with National Instrument 51-101, 100% of the Company's proved and probable oil and gas reserves were evaluated and reported on by independent qualified reserves evaluators appointed by the Board of Directors. However, the process of estimating oil and gas reserves is complex and is subject to uncertainties and interpretations. Estimating reserves requires significant judgments based on available geological and reservoir data, past production and operating performance and forecasted economic and operating conditions. These estimates may change substantially as additional data from ongoing development, testing and production becomes available and due to unforeseen changes in economic conditions which impact oil and gas prices and costs.

Asset Impairment

In accordance with full cost accounting, a ceiling test is performed, on an annual basis, to test for asset impairment. An impairment loss is recorded if the sum of the undiscounted cash flow expected from the production of the proved reserves and the lower of cost and market of unproved properties does not exceed the carrying values of the oil and gas assets. An impairment loss is recognized to the extent that the carrying value exceeds the sum of the discounted cash flow expected from the production of proved and probable reserves and the lower of costs (less any impairment) of unproved properties.

The cash flow used in testing for impairment is based on a number of estimates, the most critical being remaining reserves, future prices and future operating costs. The uncertainty in reserves is discussed above.

Unproved Properties

Certain costs related to unproved properties are excluded from costs subject to depletion until proved reserves have been determined or their value is impaired. These properties are reviewed quarterly and any impairment is transferred to the cost being depleted.

Asset Retirement Obligation

The Company records a liability for the legal obligation associated with the retirement of long-lived assets and a corresponding increase in the related asset in accordance with the method outline in the CICA Handbook section 3110. The future liability is comprised of estimates of future costs to abandon and restore well sites, facilities and natural gas processing plants discounted to their present value. The estimation of these costs is based on engineering estimates using current costs and technology and in accordance with current legislation and industry practice. These estimates are reviewed annually. Changes are accounted for prospectively and could impact net earnings.

Income Taxes

Income taxes for the Company are calculated using the liability method, whereby tax liabilities and assets are recognized for the estimated tax consequences attributable to differences between amounts reported in the financial statements and their respective tax base using income tax rates expected to apply when the differences reverse. The effect of change in income tax rates in future tax liabilities and assets is recognized in income in the period in which the change occurs.

The determination of the Company's income and other tax liabilities requires interpretation of complex laws and regulations often involving multiple jurisdictions. All tax filings are subject to audit and potential reassessment after the lapse of considerable time. Accordingly, the actual income tax liability may differ significantly from that estimated and recorded by management.

Business Combinations

Historically the Company has grown considerably through combining with other businesses. These transactions were accounted for using the purchase method as per the CICA Handbook. Under the purchase method, the acquiring company includes the fair value of the assets of the acquired entity on its balance sheet. The determination of fair value necessarily involves many assumptions. The valuation of oil and gas properties primarily relies on placing a value on the oil and gas reserves. The valuation of oil and gas reserves entails the process described above in the section Oil and Gas Reserves, which incorporates the use of economic forecasts that estimate future changes in prices and costs. In addition, this methodology is used to value unproved oil and gas reserves. The valuation of these reserves, by their nature, is less certain than the valuation of proved reserves.

Stock Based Compensation

The fair value of options granted is to be charged to earnings over the vesting period. As of August 2005, the Company determines the fair value of options granted using the Black-Scholes option pricing model. This model involves such factors as the volatility of the Company's share price and an estimation of options which will be forfeited. An adjustment in either factor may affect the amount of the fair value determined at the time of grant, resulting in a change to general and administrative expenses and net earnings.

Business Risk Assessment

There are a number of inherent risks associated with oil and gas operations and development. Many of these risks are beyond the control of management. The following outlines some of the principal risks and their impact on the Company.

Need to Replace and Grow Reserves

The future oil and natural gas production of Welton, and therefore, future cash flows, are highly dependent upon ongoing success in exploring on the Company's current and future undeveloped land base, exploiting the current producing properties and acquiring or discovering additional reserves. Without reserve additions through exploration, acquisition or development activities, reserves and production will decline over time as reserves are depleted. There can be no assurance that Welton will be able to replace and grow production at acceptable costs.

Exploration, Development and Production Risk

Exploration and development drilling has significant risk that the desired outcome will not be achieved. The probable outcome of most exploration drilling is an unsuccessful well. Welton attempts to mitigate drilling risk by having a diversified portfolio of prospects with many prospects having multi-zone potential.

Future oil and gas exploration may involve unprofitable efforts, not only from dry wells, but also from wells that are productive, but do not produce sufficient net revenues to return a profit after drilling, operating and other costs.

Oil and natural gas production operations are also subject to all the risks typically associated with such operations, including premature decline of reservoirs and the invasion of water into producing formations. Losses resulting from the occurrence of any of these risks could have a materially adverse effect on future results of operations, liquidity and financial condition.

Reserve Estimates

The production forecast and recoverable estimates contained in the Welton engineering report are only estimates and actual production and ultimate recoverable reserves from the properties may be greater or less than the estimates made by the independent engineers.

There are numerous uncertainties inherent in estimating quantities of reserves and cash flows to be derived there from, including many factors that are beyond the control of Welton. The reserve and cash flow information set forth herein represent estimates only. The reserves and estimated future net cash flow from the assets of Welton have been independently evaluated effective December 31, 2007. These evaluations include a number of assumptions relating to factors such as initial production rates, production decline rates, ultimate recovery of reserves, timing and amount of capital expenditures, marketability of production, future prices of oil and natural gas, operating costs and royalties and other government levies that may be imposed over the producing life of the reserves. These assumptions were based on production forecasts in use at the date the relevant evaluations were prepared and many of these assumptions are subject to change and are beyond the control of Welton. Actual production and cash flows derived there from will vary from these evaluations, and such variations could be material. The foregoing evaluations are based in part on assumed success of exploitation activities intended to be undertaken in future years. The reserves and estimated cash flows to be derived therefrom contained in such evaluations will be reduced to the extent exploitation activities do not achieve the level of success assumed in the evaluations.

Financial and Liquidity Risks - Additional Funding Requirements

Based on its current forecasted cash flow, Welton expects to be able to fund its planned 2008 capital program through ongoing cash flow. Welton's remaining capital budget for 2008 is fairly conservative and should not require any additional sources of funding.

If Welton's cash flow from operations is not sufficient to satisfy its capital expenditure requirements, there can be no assurance that additional debt or equity financing will be available to meet these requirements or be available on acceptable terms.

Reliance on Joint Venture Operators

The Company does not operate all of its development and exploration projects. As a result, the Company has significantly less control over the timing and cost efficiency of these programs. The Company attempts to mitigate this risk by maintaining a close and active relationship with its operating partners.

Competitive Industry Conditions

The western Canadian oil and natural gas industry has become a very competitive industry for oil and gas properties, undeveloped land, drillable prospects and oil and natural gas industry professionals. Also, the supply of service and production equipment at competitive prices is critical to the ability to add reserves at a competitive cost and produce these reserves in an economic and timely fashion. In periods of increased activity, these services and supplies can become difficult to obtain. Welton competes in these and all other aspects of its operations with a substantial number of other organizations, many of which may have much greater technical and financial resources than does Welton.

Regulatory

Oil and natural gas operations (exploration, production, pricing, marketing and transportation) are subject to extensive controls and regulations imposed by various levels of government that may be amended from time to time. Welton may require licenses from various governmental authorities. There can be no assurance that the Company will be able to obtain all necessary licenses and permits that may be required to carry out exploration and development at its projects.

Volatility of Oil and Natural Gas Prices

The Company's oil and gas prices are affected by a variety of factors such as supply and demand for the commodity, quality, exchange rates and transportation accessibility. Commodity prices have fluctuated dramatically over the past year. The Company does not currently have any commodity price hedges in place.

Exchange Rates

The importance of exchange rates to Welton's profitability is underscored by the fact that crude oil is sold against the US dollar, while the majority of operating costs are denominated in Canadian dollars.

Environmental

All phases of the oil and gas business present environmental risks and hazards and are subject to environmental protection regulation pursuant to a variety of federal, provincial and local laws and regulations. Environmental legislation provides for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances produced in association with oil and natural gas operations. The legislation also requires that wells and facility sites be operated, maintained, abandoned and reclaimed to the satisfaction of applicable regulatory authorities. Compliance with such legislation can require significant expenditures and a breach of applicable environmental legislation may result in the imposition of fines and penalties, some of which may be material.

The Company is responsible for its share of environmental, abandonment and reclamation costs of its wells and facilities. The Company maintains insurance for environmental risks such as the accidental discharge of liquid or gaseous petroleum substances, fire or explosion. There can be no guarantee that the coverage will be sufficient to cover all environmental claims, and as such, a shortfall could have a material impact on the operations or financial affairs of the Company.

Environmental Protection

Effective Environmental Protection Requirements

Welton is committed to meeting its responsibilities to protect the environment wherever it operates. Although it is not expected that the costs of complying with environmental legislation will have a material adverse effect on the Corporation's financial condition or results of operations, no assurance can be made that the costs of complying with environmental legislation in the future will not have such an effect. We believe the Corporation's operations are in substantial compliance with applicable environmental laws and regulations. However, these laws and regulations are subject to frequent change and the clear trend is to place increasingly stringent limitations on activities that may affect the environment.

Environmental Policies

To ensure compliance with environmental protection requirements, the Corporation's staff and consultants are responsible to maintain an up-to-date understanding of current and expected environmental regulations and incorporate on an ongoing basis such requirements into specifications for work being conducted at the Corporation's operated sites. In the case of Corporation's joint operations operated by others, the Corporation seeks to co-venture only with reputable operators that will reliably adhere to the same standards as the Corporation does in its own operations. The Corporation conducts, prior to acquisition, environmental reviews of properties being acquired if significant potential for environmental liabilities is considered to exist.

Changes in Accounting Policies - Financial Instruments

Recent Accounting Pronouncements

- Financial Instruments - Disclosure and Presentation

Effective January 1, 2008 Welton adopted CICA Handbook Sections 3862 "Financial Instruments - Disclosures" and 3863 "Financial Instruments - Presentation", which replaced CICA section 3861 "Financial Instruments - Disclosure and Presentation". Section 3862 outlines the disclosure requirements for financial instruments and non-financial derivatives. This guidance prescribes an increased importance on risk disclosures associated with recognized and unrecognized financial instruments and how such risks are managed. Specifically, Section 3862 requires disclosure of the significance of financial instruments on the Company's financial position. In addition, the guidance outlines revised requirements for the disclosure of qualitative and quantitative information regarding exposure to risks arising from financial instruments. The presentation requirements under section 3863 are relatively unchanged from section 3861. Refer to Note 13 on Financial Instruments and Risk Management for the additional disclosures under section 3862.

- Capital Disclosures

Effective January 1, 2008, the Company adopted CICA Handbook Section 1535, "Capital Disclosures". This new guidance requires disclosure about the Company's objectives, policies and processes for managing capital. These disclosures include a description of what the Company manages as capital, the nature of externally imposed capital requirements, how the requirements are incorporated into the Company's management of capital, whether the requirements have been complied with, or consequence of non-compliance and an explanation of how the Company is meeting its objectives for managing capital. In addition, quantitative disclosures regarding capital are required. Refer to Note 14, "Capital Disclosures".

These standards were adopted by Welton as of January 1, 2008 on a prospective basis and did not have an impact on the Company's financial statements other than expanding the level of note disclosures.

Controls and Procedures

Disclosure Controls

The Company has designed disclosure controls and procedures to provide reasonable assurance that material information relating to the Company is made known to management by others within the Company, particularly during the period in which the annual filings are being prepared. Disclosure controls and procedures are designed to provide reasonable assurance that all relevant information is gathered and reported to management, including the Chief Executive Officer ("CEO") and the Acting Vice President, Finance ("VP Finance"), on a timely basis so appropriate decisions can be made regarding public disclosure. A control system, no matter how well designed or operated, has inherent limitations. Therefore, these systems provide reasonable, but not absolute, assurance that the objectives of the control system are met.

The Company's CEO and VP Finance have evaluated the effectiveness of the Company's disclosure controls and procedures as of May 8, 2008 and based on that evaluation these officers have concluded that the Company's disclosure controls and procedures were effective to provide reasonable assurance that information required to be disclosed by the Company in reports it files or submits under applicable securities legislation is recorded, processed, summarized and reported within the time periods as required and made known to them on a timely basis.

Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Multi-lateral Instrument 52-109 - Certification of Issuers' Annual and Interim Filings. Our internal controls over financial reporting are designed to provide reasonable assurance regarding the reliability of our financial reporting and preparation of our financial statements for external reporting purposes in accordance with accounting principles generally accepted in Canada. Our internal controls over financial reporting include those policies and procedures that: pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and disposition of assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with generally accepted accounting principles and receipts and expenditures of our assets are being made only in accordance with authorizations of our management and directors; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.

No changes were made in our internal control over financial reporting during the three month period ended March 31, 2008, that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.



Selected Quarterly Financial Information

2008 2007 2006
----------------------------------------------------------------------------
($thousands, except
per share amount) Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Production revenue 3,368 3,397 2,774 3,194 3,836 3,760 4,215 3,884
----------------------------------------------------------------------------
Net income (loss) (694) (2,441)(1,053) (593) (911) (1,045) (499) (314)
----------------------------------------------------------------------------
Per share amounts:
----------------------------------------------------------------------------
Basic and diluted (0.01) (0.05) (0.02)(0.01)(0.02) (0.02)(0.01) -
----------------------------------------------------------------------------
Net income (loss)
----------------------------------------------------------------------------
Funds flow 527 489 588 1,220 1,055 1,094 1,612 1,588
----------------------------------------------------------------------------
Per share amounts:
----------------------------------------------------------------------------
Basic and diluted 0.01 0.01 0.01 0.03 0.03 0.03 0.04 0.04
Funds flow
----------------------------------------------------------------------------


Welton Energy Corporation
Consolidated Balance Sheet
(Unaudited)
(in thousands of dollars)

March 31, December 31,
2008 2007
----------------------------------------------------------------------------

Assets

Current assets
Accounts receivable $ 2,794 $ 2,277
Other assets 289 822
----------------------------------------------------------------------------
3,083 3,099

Property, plant and equipment (note 4) 50,969 51,308
----------------------------------------------------------------------------
$ 54,052 $ 54,407
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Liabilities

Current liabilities
Accounts payable and accrued liabilities $ 4,736 $ 7,896
Bank loan (note 6) 4,570 774
Convertible debentures (note 8) 10,280 -
----------------------------------------------------------------------------
19,586 8,670

Convertible debentures (note 8) - 10,212
Future tax liability (note 7) 3,015 1,528
Asset retirement obligation (note 5) 1,704 1,685
----------------------------------------------------------------------------
24,305 22,095

Shareholders' equity
Share capital (note 9) 33,887 35,807
Equity component of debentures (note 8) 432 432
Contributed surplus 6,317 6,268
Deficit (10,889) (10,195)
----------------------------------------------------------------------------
29,747 32,312

----------------------------------------------------------------------------
$ 54,052 $ 54,407
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements

Going Concern (note 1)
Subsequent Event (note 16)


Welton Energy Corporation
Consolidated Statement of Operations, Comprehensive Loss and Deficit
(Unaudited)
(in thousands of dollars, except per share amounts)

Three months ended March 31
2008 2007
----------------------------------------------------------------------------

Revenues
Production $ 3,368 $ 3,836
Royalty expense (964) (1,018)
Other income 37 26
----------------------------------------------------------------------------
2,441 2,844
----------------------------------------------------------------------------

Expenses
Depletion, depreciation and accretion 1,592 2,406
Production 1,058 867
General and administrative 563 485
Interest, financing and bank charges (note 11) 318 299
----------------------------------------------------------------------------
3,531 4,057
----------------------------------------------------------------------------

Loss before income tax (1,090) (1,213)
Provision for (recovery of) income taxes
Current 28 42
Future (note 7) (424) (344)
----------------------------------------------------------------------------
(396) (302)

Net loss and Comprehensive Loss (694) (911)

Deficit, beginning of period (10,195) (5,197)
----------------------------------------------------------------------------
Deficit, end of period $ (10,889) $ (6,108)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Net loss per common share:
-Basic (note 9) $ (0.01) $ (0.02)
-diluted (note 9) $ (0.01) $ (0.02)
----------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements


Welton Energy Corporation
Consolidated Statement of Cash Flows (Unaudited)
(in thousands of dollars)
Three months ended March 31
2008 2007
----------------------------------------------------------------------------
Cash flows related to the following activities:

Operating
Net Loss $ (694) $ (911)
Add items not requiring cash:
Depletion, depreciation and accretion 1,592 2,406
Future income taxes (recoveries) (424) (344)
Stock based compensation 49 85
Non-cash financing charges and other 50 67
Asset retirement expenditures (46) (248)
----------------------------------------------------------------------------
Funds flow 527 1,055
Changes in non-cash working capital relating to
operating activities (1,306) (348)
----------------------------------------------------------------------------
(779) 707
----------------------------------------------------------------------------
Financing
Increase in bank loan 3,796 800
----------------------------------------------------------------------------
3,796 800
----------------------------------------------------------------------------

Investing
Oil and natural gas property expenditures (1,179) (1,335)
Changes in non-cash investing working capital (1,838) (172)
----------------------------------------------------------------------------
(3,017) (1,507)
----------------------------------------------------------------------------

Decrease in cash - -

Cash, beginning of period - -
----------------------------------------------------------------------------
Cash, end of period $ - $ -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Supplementary information:
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Interest paid $ 255 $ 231
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Taxes paid $ 28 $ -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The accompanying notes are an integral part of these financial statements


Notes to the Consolidated Financial Statements (Unaudited)

(All amounts in thousands of Canadian dollars, unless otherwise stated)

1. Going Concern and Basis of Presentation

The consolidated financial statements include the accounts of Welton Energy Corporation ("Welton" or "the Company") and its wholly-owned subsidiaries.

The Company's principal business activity is in the exploration, development and production of petroleum and natural gas in Western Canada.

These financial statements have been prepared in accordance with Canadian generally accepted accounting principles ("GAAP") applicable to a going concern, which contemplates the realization of assets and the payment of liabilities in the ordinary course of business. Should the Company be unable to continue as a going concern, it may be unable to realize the carrying value of its assets and to meet its liabilities as they become due.

The Company reported a net loss of $694 and funds generated from operations of $527, for the three months ended March 31, 2008. The Company had a net working capital deficit of $16,503, including reclassified convertible debentures of $10,280 with a credit facility of $7,000 in place at March 31, 2008. The Company's ability to continue as a going concern is dependent upon the ability to raise capital and the success of the drilling and exploration program. Welton is currently addressing the significance of the impact on its future operations of the repayment of the $10,500 Convertible Debentures due January 15, 2009, since there is reasonable doubt as to their conversion prior to that date. Plans to address the issue include the possibility of disposing of certain assets or re-negotiating the terms of the debentures and involve the appointment on March 24, 2008 of Tristone Capital Inc. with a mandate to act as exclusive financial advisor to assist in exploring strategic alternatives. There can be no assurance that the Company will be successful with those initiatives. As at March 31, 2008 the Company was in compliance with all of its lending covenants.

The accompanying financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. Such adjustments could be material.

2. Summary of Significant Accounting Policies

The financial statements have been prepared by management in accordance with Canadian generally accepted accounting principles. The interim unaudited consolidated financial statements have been prepared following the same accounting policies and methods of computation as the consolidated financial statements for the fiscal year ended December 31, 2007. The disclosures included below are incremental to those included with the annual consolidated financial statements. The interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in the Company's annual report for the year ended December 31, 2007.

3. Recent Accounting Pronouncements

a) Financial Instruments - Disclosure and Presentation

Effective January 1, 2008 Welton adopted CICA Handbook Sections 3862 "Financial Instruments - Disclosures" and 3863 "Financial Instruments - Presentation", which replaced CICA section 3861 "Financial Instruments - Disclosure and Presentation". Section 3862 outlines the disclosure requirements for financial instruments and non-financial derivatives. This guidance prescribes an increased importance on risk disclosures associated with recognized and unrecognized financial instruments and how such risks are managed. Specifically, Section 3862 requires disclosure of the significance of financial instruments on the Company's financial position. In addition, the guidance outlines revised requirements for the disclosure of qualitative and quantitative information regarding exposure to risks arising from financial instruments. The presentation requirements under section 3863 are relatively unchanged from section 3861. Refer to Note 13 on Financial Instruments and Risk Management for the additional disclosures under section 3862.

b) Capital Disclosures

Effective January 1, 2008, the Company adopted CICA Handbook Section 1535, "Capital Disclosures". This new guidance requires disclosure about the Company's objectives, policies and processes for managing capital. These disclosures include a description of what the Company manages as capital, the nature of externally imposed capital requirements, how the requirements are incorporated into the Company's management of capital, whether the requirements have been complied with, or consequence of non-compliance and an explanation of how the Company is meeting its objectives for managing capital. In addition, quantitative disclosures regarding capital are required. Refer to Note 14, "Capital Disclosures".

These standards were adopted by Welton as of January 1, 2008 on a prospective basis and did not have an impact on the Company's financial statements other than expanding the level of note disclosures.



4. Property, Plant and Equipment

----------------------------------------------------------------------------
March 31, December 31,
2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Petroleum and natural gas properties $ 45,320 $ 44,381
----------------------------------------------------------------------------
Land and seismic 13,311 13,138
----------------------------------------------------------------------------
Production equipment 14,826 14,770
----------------------------------------------------------------------------
Other 327 277
----------------------------------------------------------------------------
----------------------------------------------------------------------------
73,784 72,566
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accumulated depletion and depreciation (22,815) (21,258)
----------------------------------------------------------------------------
$ 50,969 $ 51,308
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The calculation of the 2008 depletion and depreciation excludes $8,315 (2007 - $7,946) for undeveloped properties and $522 (2007 - $522) for the estimated salvage value of production equipment and includes $4,227 (2007 - $4,227) for future development costs. General and administrative costs of $45 (2007 - $56) were capitalized during the first quarter of 2008.

5. Asset Retirement Obligation

The asset retirement obligation was estimated by management based on the present value at the credit adjusted risk-free rate of 8.5% and an inflation rate of 2.0% of the Company's share of its wells, estimated costs to abandon and reclaim those wells and the estimated timing of the costs to be incurred in future periods. The undiscounted estimated cash flow required to settle the obligation is $3,167 (2007 - $3,163). These costs are expected to be incurred over 35 years.



----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, December 31, 2007 $ 1,685
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Increase in liability during period -
----------------------------------------------------------------------------
Obligations settled (46)
----------------------------------------------------------------------------
Changes in estimates 29
----------------------------------------------------------------------------
Accretion 36
----------------------------------------------------------------------------
Balance, March 31, 2008 $ 1,704
----------------------------------------------------------------------------
----------------------------------------------------------------------------


6. Bank Loan

At March 31, 2008, the Company had in place banking arrangements for a $7,000 demand loan facility. The demand loan facility bears interest at bank prime rate plus 0.25%, and is secured by a $25,000 fixed charge debenture and a floating charge over all assets of the Company. At March 31, 2008, $4,570 (2007 - $774) was drawn on the facility and the Company was in compliance with all of its lending covenants.



7. Income taxes

The tax effects of temporary differences that give rise to the future
income tax assets and liabilities are presented below:

----------------------------------------------------------------------------
As at March 31, December 31,
2008 2007
----------------------------------------------------------------------------
Future income tax assets:
----------------------------------------------------------------------------
Share issuance costs $ 286 $ 317
----------------------------------------------------------------------------
Loss carryforwards 4,101 4,221
----------------------------------------------------------------------------
Valuation allowance (1,271) (1,271)
----------------------------------------------------------------------------
Asset retirement obligation 434 431
----------------------------------------------------------------------------
Other 74 66
----------------------------------------------------------------------------
Future income tax liabilities:
----------------------------------------------------------------------------
Property and equipment (6,639) (5,292)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net future income tax asset (liability) $ (3,015) $ (1,528)
----------------------------------------------------------------------------
----------------------------------------------------------------------------


In February 2008, the Company renounced $6,177 of Canadian Exploration Expenditures and $792 of Canadian Development Expenditures. The future tax impact of these renouncements resulted in an increase of the Company's future tax liability of $1,914 as at March 31, 2008 with a corresponding charge to share capital.

8. Convertible Debentures

On February 27, 2006, the Company issued $10,500 principal amount of 8% secured convertible debentures. Interest is paid quarterly in arrears. The debentures mature on January 15, 2009 and are therefore classified as a current liability.



Total
Debt Deferred Debt Equity Principal
Portion Financing Portion Portion Outstanding
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, December 31, 2007 $10,344 $ (132) $10,212 $ 432 $ 10,500
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Accretion 37 - 37 - -
----------------------------------------------------------------------------
Amortization - 31 31 - -
----------------------------------------------------------------------------
Balance, March 31, 2008 $10,381 $ (101) $10,280 $ 432 $ 10,500
----------------------------------------------------------------------------
----------------------------------------------------------------------------

9. Share Capital

Authorized
An unlimited number of common shares with no par value.

Number of
Shares Amount
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Balance, December 31, 2006 41,961 $ 30,815
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Issue of flow-through common shares 7,875 6,177
----------------------------------------------------------------------------
Share issue costs, net of future tax effect of $247 - (162)
----------------------------------------------------------------------------
Tax effect of flow-through share renunciations - (1,023)
----------------------------------------------------------------------------
Balance, December 31, 2007 49,836 $ 35,807
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Share issue costs, net of future tax effect of $3 - (6)
----------------------------------------------------------------------------
Tax effect of flow-through share renunciations - (1,914)
----------------------------------------------------------------------------
Balance, March 31, 2008 49,836 $ 33,887
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The following table shows the basic and diluted weighted average shares
outstanding for the three month periods ended March 31, 2008 and 2007:

Three months ended
March 31
2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic weighted average common shares 49,836 41,961
----------------------------------------------------------------------------
Diluted weighted average common shares 49,836 41,961
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Company's stock options and convertible debentures have been excluded from the diluted calculations as the Company is in a loss position and the impact would be anti-dilutive.

10. Stock Option Plan

Under the Stock Option Plan, the Board of Directors may grant to any director, officer, employee or consultant, options to acquire common shares. The total number of options outstanding may not exceed 10% of the outstanding common shares of the Company. Options vest at the discretion of the Board and the term shall not exceed five years from the date of grant.



A summary of the Company's outstanding options is presented below.

2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Weighted Weighted
Number Average Number Average
Exercise Exercise
Price Price
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding, December 31 3,836 $ 0.91 3,808 $ 0.93
----------------------------------------------------------------------------
Granted - - - -
----------------------------------------------------------------------------
Exercised - - - -
----------------------------------------------------------------------------
Cancelled - - (87) 1.00
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Outstanding, March 31 3,836 $ 0.91 3,721 $ 0.93
----------------------------------------------------------------------------
----------------------------------------------------------------------------

A summary of the pricing of the options outstanding under the Company's
Option Plan as at March 31, 2008 is as follows:

Weighted Weighted
average average
Ranges of Options remaining exercise
exercise price outstanding term (years) Exercisable price
----------------------------------------------------------------------------
----------------------------------------------------------------------------
$0.27 - $0.64 1,315 1.1 1,178 $0.36
----------------------------------------------------------------------------
$0.89 - $1.18 1,294 2.6 790 $0.98
----------------------------------------------------------------------------
$1.20 - $1.50 1,227 2.4 884 $1.44
----------------------------------------------------------------------------
----------------------------------------------------------------------------
$0.27 - $1.50 3,836 2.0 2,852 $0.87
----------------------------------------------------------------------------
----------------------------------------------------------------------------

11. Interest and Financing Charges

The following table outlines the components within interest and financing
charges.

Three months ended
March 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------
2008 2007
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Interest and loan fees on bridge and bank loans $ 41 $ 24
----------------------------------------------------------------------------
Interest on debentures 209 207
----------------------------------------------------------------------------
Amortization of debenture issue costs 31 31
----------------------------------------------------------------------------
Accretion of debentures 37 37
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total interest and financing charges $ 318 $ 299
----------------------------------------------------------------------------
----------------------------------------------------------------------------


12. Commitments

The Company has an obligation to incur $2,250 of qualifying expenditures by the end of 2008 to meet its December 2007 flow-through share obligations. As at March 31, 2008, the Company had satisfied $731 of this obligation. The Company has until the end of 2008 to incur additional expenditures totaling $1,519 to meet its flow-through share obligations.

13. Financial Instruments and Risk Management

Welton's financial assets and liabilities are comprised of cash, accounts receivable, current borrowings and all other current liabilities. The Company has exposure to the following risks arising from its financial instruments as follows:

- Credit risk

- Liquidity risk

- Market risk

-- Foreign Exchange risk

-- Commodity Price risk

-- Interest Rate risk

The Company employs risk management strategies and policies to ensure that any exposures to risk are in compliance with the Company's business objectives and risk tolerance levels. The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The senior management of Welton has the responsibility to implement and continuously monitor the risk management policies to ensure adherence with objectives.

a) Credit Risk

Credit risk represents the risk that the counterparty to a financial asset will default, resulting in the Company incurring a financial loss. The Company's receivables are predominantly with joint venture partners and petroleum and natural gas marketers in the energy industry and are subject to normal industry credit risks. The Company typically grants unsecured credit but assesses the financial strength of its customers. The Company also attempts to mitigate the risk from joint venture receivables by obtaining partner approval of significant capital expenditures prior to expenditure or through cash calling a partner in advance of completion of the work. Additionally, the Company has the ability to withhold production or net payables from joint venture partners in the event of non-payment.

During the three months ended March 31, 2008, there were no receivables written off and the carrying amount of accounts receivable represents the maximum credit exposure. The Company considers its accounts receivable, excluding cash calls receivable of $181, to be aged as follows:



----------------------------------------------------------------------------
Aging March 31,2008
----------------------------------------------------------------------------
Current (0-30 days) $ 1,555
----------------------------------------------------------------------------
31-60 days 57
----------------------------------------------------------------------------
61-90 days 34
----------------------------------------------------------------------------
More than 90 days 967
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total $ 2,613
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Included in the items classified as more than 90 days, there was an amount of $283 subsequently collected in full. In addition, almost $400 of this balance relates to amounts owing by a joint venture partner for whom similar amounts owing in accounts payable may be withheld.

b) Liquidity Risk

Liquidity risk represents the risk that the Company will not be able to meet its financial obligations as they become due. The Company's processes for managing liquidity is to ensure, to the extent possible, that it will have sufficient liquidity to meet its liabilities when they become due without incurring unacceptable losses or risking harm to the Company's reputation.

The Company prepares annual and quarterly capital expenditure budgets which are monitored and updated as required. In addition, the Company requires authorizations for expenditures on both operated and non-operated projects and defers timing of its capital expenditures as necessary. The Company has a revolving demand loan facility (note 6) in place to facilitate the capital expenditure program.

All of the Company's contractual maturities of financial liabilities occur within the next year.

c) Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market price. Market risk is comprised of foreign currency risk, interest rate risk and commodity price risk.

i) Foreign Currency Risk

Foreign currency exchange rate risk is the risk that the fair value or future cash flows of financial instruments will fluctuate as a result of changes in foreign exchange rates. Although all of the Company's petroleum and natural gas sales are denominated in Canadian dollars, the underlying market prices in Canada for petroleum and natural gas are impacted by changes in the exchange rate between the Canadian and United States dollar. The Company had no financial instruments denominated in foreign currencies and no forward exchange contracts in place as at or during the three months ended March 31, 2008.

ii) Interest Rate Risk

Interest rate risk is the risk that fair values or future cash flows will fluctuate as a result of changes in market interest rates. The Company is exposed to interest rate fluctuations on its credit facility which bears a floating rate of interest. The Company had no interest rate swap or financial contracts in place as at or during the three months ended March 31, 2008. For the three months ended March 31, 2008, a difference in the interest rate of 1.0% would change net earnings by an estimated $6, assuming all other variables remained constant.

iii) Commodity Price Risk

Commodity price risk is the risk that the fair value or future cash flows of financial instruments will fluctuate as a result of changes in commodity prices. Commodity prices for petroleum and natural gas are impacted by world economic events that dictate the levels of supply and demand. The Company had no financial derivative sales contracts in place as at or during the three months ended March 31, 2008.

d) Fair Value of Financial Instruments

The Company's financial instruments as at March 31, 2008 include cash, accounts receivable, current borrowings and all other current liabilities.

The Company's bank loan bears interest at a floating market rate and accordingly the fair value approximates the carrying value. The carrying values of the Company's financial instruments are as follows:



----------------------------------------------------------------------------
March 31, 2008 December 31, 2007
----------------------------------------------------------------------------
Financial Instrument

Carrying Carrying Carrying Carrying
Value of Value of Value of Value of
Financial Other Balance Financial Other Balance
Assets/ Assets/ Sheet Asset/ Assets/ Sheet
Liabilities Liabilities Amount Liabilities Liabilities Amount
----------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------
Accounts
receivable $2,560 $ 234 $2,794 $1,853 $ 424 $2,277
----------------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------------
Accounts payable
& Accrued
liabilities 4,684 52 4,736 7,213 683 7,896
----------------------------------------------------------------------------
Bank loan 4,570 - 4,570 774 - 774
----------------------------------------------------------------------------
Convertible
debentures 10,280 - 10,280 10,212 - 10,212
----------------------------------------------------------------------------


The fair values of cash, accounts receivable, current borrowings, and all other current liabilities approximate their carrying amount due to the short-term maturity of those instruments.

Risk management assets and liabilities are recorded at their estimated fair value based on the mark-to-market method of accounting, using quoted market prices or, in their absence, third-party market indications and forecasts. The convertible debentures are carried at amortized cost using the effective interest method of amortization.

14. Capital Disclosures

The Company's capital structure is comprised of shareholders' equity, debt and working capital. The Company's objectives when managing its capital structure are to:

a) Maintain a flexible financial structure to preserve Welton's access to capital markets and its ability to meet its financial obligations; and

b) Finance growth in production, cash flow and reserves through the completion of significant transactions, including joint ventures, property purchases, corporate acquisitions, drilling success and financings.

The Company manages its capital structure and makes adjustments to it through continuous monitoring of market and economic conditions as well as the risk characteristics of the Company's underlying assets. To maintain or adjust the capital structure, the Company may issue shares, raise debt and/or adjust its capital spending to manage its current and projected debt levels.

The Company monitors capital and its short-term financing requirements using non-GAAP working capital financial metrics. These metrics are used to measure the Company's debt position and overall financial strength, and are calculated in accordance with the Company's credit facility agreement, as follows:



----------------------------------------------------------------------------
As at As at
March 31, December 31,
2008 2007
----------------------------------------------------------------------------
Current assets $ 3,083 $ 3,099
----------------------------------------------------------------------------
Accounts payable (4,736) (7,896)
----------------------------------------------------------------------------
Current portion of bank loan (4,570) (774)
----------------------------------------------------------------------------
Current portion of convertible debentures (10,280) -
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net Debt and Working Capital Deficiency $ (16,503) $ (5,571)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Current assets $ 3,083 $ 3,099
----------------------------------------------------------------------------
Total credit facility 7,000 7,000
----------------------------------------------------------------------------
Bank loan (4,570) (774)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Current Assets Under Banking Agreement $ 5,513 $ 9,325
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Current liabilities $ 19,586 $ 8,670
----------------------------------------------------------------------------
Less: Current portion of convertible debentures (10,280) -
----------------------------------------------------------------------------
Less: Bank loan (4,570) (774)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Total Current Liabilities Under Banking Agreement $ 4,736 $ 7,896
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Working Capital Ratio 1.16 : 1 1.18 : 1
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The Company's objective is to maintain a working capital ratio of not less than 1:1, excluding the convertible debentures, as defined by the credit facility agreement. To facilitate the management of this ratio, the Company prepares annual budgets, which are updated on a quarterly basis for actual results. The annual budget and quarterly updates are approved by the Company's Board of Directors.

The Company is subject to certain financial covenants in its credit facility agreement (note 6) and is in full compliance with all financial covenants as at March 31, 2008. There were no changes in the Company's approach to capital management from the prior year.

15. Reclassification

Certain information provided for prior periods has been reclassified to conform to the presentation adopted in 2007.

16. Subsequent Event

On April 7, 2008, options to purchase 635 shares, at an exercise price of $0.37/share were granted by the Board of Directors to employees and certain consultants of the Company.



Corporate Information

DIRECTORS & OFFICERS

Aubrey W. Baillie(2)
Director

Robert A. Befus
Vice President Exploration

Peter A. Braaten
Chairman

Donald A. Engle
Director, President and Chief Executive Officer

W. Chipman Johnston
Corporate Secretary

Robert L. McLeish(2)
Director

David S. Oginski
Chief Operating Officer

Raymond R. Pether
Director

Mark R. Smith(1)
Director

Alison G. Strachan
Controller

David E. Thring(2)
Director

Giles Twogood
Acting Vice President, Finance

Peter L. Wallace
Director

(1) Member of Corporate Governance Committee
(2) Member of Audit and Corporate Governance Committees

AUDITORS

PricewaterhouseCoopers LLP
Calgary, Alberta

TRANSFER AND SUBSCRIPTION AGENTS

Valiant Trust Company
Calgary, Alberta

RESERVE ENGINEERS

GLJ Petroleum Consultants
Calgary, Alberta

DeGolyer & MacNaughton
Calgary, Alberta

BANKER

National Bank of Canada
Calgary, Alberta

LAWYERS

Bennett Jones LLP
Calgary, Alberta

WEBSITE

www.weltonenergy.com

MAILING ADDRESS
Suite 2180, Sun Life Plaza, North Tower
140 - 4(th) Avenue SW
Calgary, Alberta
T2P 3N3
Phone: 403-233-2393
Fax: 403-264-6219

CONTINUOUS DISCLOSURE MANAGER
Contact: Donald A. Engle
Phone: 403-215-4747
Email: engle@weltonenergy.com

ABBREVIATIONS
bbl barrel
bbls barrels
bcf billion cubic feet
bbls/d barrels per day
boe barrels of oil equivalent
boe conversion ratio 6 mcf to 1 bbl
boe/d barrels of oil equivalent per day
mbbls thousand barrels
mboe thousand barrels of oil equivalent
mcf thousand cubic feet
mcf/d thousand cubic feet per day
mcfe/d thousand cubic feet equivalent per day
mmbtu million British thermal units
mmcf million cubic feet
mmcf/d million cubic feet per day
mmcfe/d million cubic feet equivalent per day
NGL natural gas liquids
WTI West Texas Intermediate at Cushing, Oklahoma

Contact Information

  • Welton Energy Corporation
    Donald A. Engle
    President and Chief Executive Officer
    (403) 215-4747
    or
    Welton Energy Corporation
    Giles Twogood
    Acting Vice President, Finance
    (403) 215-4750
    Website: www.weltonenergy.com