BPI Announces Financial Update

  
    
  
  
    
      BPI Energy Holdings, Inc. (AMEX: BPG), an independent energy 
      company engaged in the exploration, production and commercial sale of 
      coalbed methane (CBM) in the Illinois Basin, today announced financial 
      and operating results for the fiscal fourth-quarter and full-year 
      periods ended July 31, 2008 and provided a general financial update.
    
    
      During the fiscal fourth quarter, net gas sales revenues were $741,000, 
      versus $333,000 reported in last year’s 
      comparable period. Net sales volume was 64.3 million cubic feet (MMcf) 
      versus 47.9 MMcf in the fiscal 2007 fourth quarter.
    
    
      For the full year, net gas sales revenues were $2.0 million versus the 
      $1.2 million generated from net gas sales in fiscal 2007. Net sales 
      volume for the 12-month period was 250.0 MMcf versus 185.3 MMcf last 
      year.
    
    
      The average gas price per thousand cubic feet (Mcf) for the quarter 
      increased to $11.52 from $6.86 a year ago. BPI received an average of 
      $8.14 per Mcf for the full year, versus $6.50 per Mcf in fiscal 2007. 
      Sales and average gas prices exclude the effects of commodity 
      derivatives contracts as the Company includes gains and losses from such 
      contracts in other income and expense. The Company has entered into a 
      fixed-price swap of $10.26 per MMBtu for the notional amount of 20,000 
      MMBtu per month on gas sales during the period July 1, 2008 through July 
      2010.
    
    
      General and administrative expenses declined sharply from previous 
      levels, falling 54% for the quarter and 32% for the fiscal year. The 
      declines for both periods reflected sharply decreased salaries and 
      benefits.
    
    
      The Company reported a net loss of $8.7 million, or $0.12 per share, for 
      the quarter, compared with the net loss of $14.0 million, or $0.20 per 
      share, in last year’s final quarter. The net 
      loss for the full year was $14.8 million, or $0.21 per share, versus 
      last year’s net loss of $20.6 million, or 
      $0.30 per share. The net losses for each period were largely the result 
      of ceiling write-downs of gas properties, which totaled $7.5 million and 
      $11.7 million, recorded in the respective fiscal 2008 and 2007 fourth 
      quarters. Partially offsetting this was a non-cash gain of $610,000 in 
      the fiscal 2008 fourth quarter ($265,000 for the fiscal year) related to 
      change in value of derivative contracts.
    
    
      Operating data for the fiscal 2008 fourth quarter and full year ended 
      July 31, 2008, are summarized below:
    
    
      
        
           
        
      
      
        
          
            Selected Financial and Operating Data
          
        
      
      
        
           
        
      
      
        
        
        
          Three Months Ended
        
      
      
        
        
        
          7/31/2008
        
        
           
        
        
          7/31/2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Net Gas Sales (Mcf)
        
        
          64,339
        
        
        
        
          47,904
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Average Selling Price

          
            ($/Mcf), net
          
        
        
          
            $11.52
          
        
        
        
        
          
            $6.86
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          12 Months Ended
        
      
      
        
        
        
          7/31/2008
        
        
        
        
          7/31/2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Net Gas Sales (Mcf)
        
        
          249,550
        
        
        
        
          185,305
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Average Selling Price

          
            ($/Mcf), net
          
        
        
          
            $8.14
          
        
        
        
        
          
            $6.50
          
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
        
        
          At 7/31/2008
        
        
        
        
          At 7/31/2007
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Cumulative Wells Drilled
        
        
          206
        
        
        
        
          170
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          
            Wells Producing and Selling Gas1
          
        
        
          116
        
        
        
        
          91
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Proved Reserves (MMcf)
        
        
          18,286
        
        
        
        
          16,274
        
      
      
        
        
        
        
        
        
        
           
        
      
      
        
          Acreage in Production