Altacanada Energy Corp. Releases 2006 Results And Announces Montana Land Sale Success

by NationTalk on May 10, 2007810 Views

PRESS RELEASE
May 8, 2007
TSX-V SYMBOL: ANG

2006 Financial and Operating Results.

During 2006, we achieved record revenues of $14.8 million and a record average production of 942 BOE/d. 2006 cash flow was $4.4 million ($0.07 per share) and the loss for the year was $1.37 million ($0.02 per share). We maintained our capital spending at just under $10 million, drilled 35 wells (27.3 net) and lowered our net debt to $9.5 million from $10.3 million despite a drop in gas prices. Most of our capital spending was directed at development drilling moving probable reserves to the proven producing category (up 40%).AltaCanada continues to maintain a large inventory of drilling opportunities for shallow gas in northern Montana. Our undeveloped acreage totals dipped slightly to 183,000 net acres at year end, due to development drilling that moved undeveloped acres into the proven category. An operation and financial summary is attached. AltaCanada’s 2006 financials, the accompanying notes and MD&A are available as an attachment on our website (www.altacanada.com) or on SEDAR (www.sedar.com)

Montana April 24 Land Sale Results

At the April 24, 2007 land sale conducted by the Bureau of Indian Affairs on the Fort Belknap Reservation, AltaCanada, was the successful bidder on 96% of the tracts bid on. The successful bids total 157,034 gross acres (43,480 net acres), increasing our year end net acres by 24%. Successful bids are followed by award letters from the Bureau of Indian Affairs and individual acceptance by lessors. With our partners we had previously acquired over 40,000 gross acres on the Reservation in 2005; shot the only new seismic on the Reservation since 1982, and drilled a November 2006 stratigraphic test, the first well drilled in nearly 30 years on Fort Belknap.

Acquired leases are 5 year term and include a 16.6% royalty. These leases are only 20 miles south of our existing Montana gas gathering system. We have been one of Blaine County’s most active drillers over the past three years, drilling over 100 wells and establishing significant gas production.

Please visit here to view full press release.

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