Whittier Announces Second Quarter Financial Results; 174% Increase in Net Income; 147% Increase in Production

Whittier Energy Corporation (Nasdaq:WHIT) today
announced financial and operating results for the second quarter of
2006. Net income was $2.2 million or $0.17 per fully diluted share for
the second quarter ended June 30, 2006, compared to net income of $0.8
million, or $0.14 per fully diluted share, for the second quarter of
2005. The Company reported oil and gas revenues, after adjustments for
hedging, of $10.9 million, a 181% increase over oil and gas revenues
of $3.9 million in the second quarter of last year. The increase was
primarily attributed to higher oil and gas production and the
acquisition of RIMCO Production Company, Inc. ("RIMCO") in June 2005.
The Company reported total production of 1.5 billion cubic feet of gas
equivalent ("Bcfe") for the latest quarter, an increase of 147% from
the 597 million cubic feet of gas equivalent ("Mmcfe") produced in the
second quarter of 2005. Realized commodity prices, net of hedges,
increased 14% from $6.46 per thousand cubic feet of gas equivalent
("Mcfe") for the second quarter of 2005 to $7.35 per Mcfe for the same
period in 2006.
   For the first six months of 2006 the Company reported net income
of $4.4 million, a 291% increase over the $1.1 million reported for
the first six months of 2005. Revenue from oil and gas sales, after
adjustments for hedging, for the first six months of 2006 was $20.8
million, a 213% increase over the $6.7 million reported in the first
half of 2005. The increase is primarily attributable to higher
production and the RIMCO acquisition in June 2005. The Company
reported total production of 2.7 Bcfe for the period as compared to
1.1 Bcfe for the same period in 2005. The Company also benefited from
slightly higher prices, realizing $7.62 per Mcfe, net of hedges, for
the first six months of the year compared to $6.08, net of hedges, for
the same period in 2005. The Company drilled 20 gross wells in this
period, 17 of them successful, for an 85% overall success rate.

   Operating and Financial Highlights for the Second Quarter of 2006
include:

   --  Record net production of 1.5 Bcfe, an increase of 147% from
        the second quarter of 2005;

   --  Average daily production of 16.2 Mmcfe as compared to 6.6
        Mmcfe for the second quarter of 2005;

   --  Lease operating costs per unit of $1.08/Mcfe, a decrease of
        45% from $1.98/Mcfe in the second quarter of 2005; and

   --  Oil and gas revenues, before hedging, of $11.6 million,
        compared to $4.4 million for the second quarter of 2005, an
        increase of 162%.

   Operating and Financial Highlights for the First Six Months of
2006 include:

   --  Record net production of 2.7 Bcfe, an increase of 150% from
        the first half of 2005;

   --  Average daily production of 15.1 Mmcfe as compared to 6 Mmcfe
        for the first half of 2005;

   --  Lease operating costs per unit of $1.06/Mcfe, a decrease of
        42% from $1.82/Mcfe in the first half of 2005; and

   --  Oil and gas revenues, before hedging, of $22.5 million, an
        increase of 189% over the $7.8 million reported in the first
        half of 2005.

   Bryce Rhodes, Whittier Energy President and CEO, commented, "Our
results for the second quarter and for the first six months of 2006
reflect the success of our business strategy to combine acquisitions
in our core areas with organic growth through the drill bit. The
continued, disciplined execution of this strategy has resulted in
substantial increases in production as well as oil and gas revenues
for the both the second quarter and year to date. Whittier's
operational and financial results, combined with our recently
announced property acquisitions and the success of our 2006 drilling
program so far this year, reflect Whittier's ability to execute our
strategy to grow our business and enhance shareholder value."

   Second Quarter 2006 Highlights

   The Company generated net income of approximately $2.2 million, or
$0.17 per diluted share, in the second quarter of 2006 compared to net
income of $798,000, or $0.14 per diluted share, in the same period of
the prior year. Net cash flows provided by operating activities were
$7.2 million in the latest quarter compared to $1.8 million in the
second quarter of 2005 and were primarily used to fund our exploration
and development expenditures.
   Oil and gas revenues, before hedging, increased 162% to
approximately $11.6 million in the second quarter of 2006 from $4.4
million in the same period in the prior year. The increase in oil and
gas revenues was primarily due to increased production and the
acquisition of RIMCO in June 2005. The Company's production grew 147%
to 1.5 Bcfe in the quarter ending June 30, 2006.
   Total operating costs and expenses increased by 160% from $2.9
million for the quarter ending June 30, 2005 to $7.5 million for the
latest quarter, principally due to increased acquisition, development
and exploration activity.
   Depreciation, depletion and amortization increased by 316% from
the prior quarter primarily due to higher relative production rates
for the period and higher cost depletion rates associated with the
RIMCO acquisition in June 2005.
   Lease operating expenses increased 35% from $1.2 million for the
quarter ending June 30, 2005 to $1.6 million for the quarter ending
June 30, 2006. On a per Mcfe basis, however, lease operating expenses
fell 45% from $1.98 per Mcfe in the second quarter of 2005 to $1.08
per Mcfe for the second quarter of 2006. This decrease was principally
due to the continuing increase in the percentage of gas in the
Company's overall production for the period and a reduction in
non-recurring workover activities from the prior period.
   Production taxes increased 152%, from $314,000, or $0.53 per Mcfe,
for the quarter ending June 30, 2005, to $792,000, or $0.54 per Mcfe,
for the quarter ending June 30, 2006.
   The Company recognized a non-cash gain of $310,000 due to the
ineffective portion of the fair value adjustment to hedge contracts
for the second quarter of 2006 compared to a non-cash gain of $74,000
for the second quarter of 2005. Whittier also recognized pre-tax
losses in oil and gas revenues of $743,000 and $564,000 during the
quarters ended June 30, 2006 and 2005, respectively, due to realized
settlements of its price hedge contracts.
   General and administrative expense increased to $1.2 million for
the quarter ending June 30, 2006 from $467,000 for the quarter ending
June 30, 2005, primarily due to staff increases to support the
Company's growing business.

   First Six Months 2006 Highlights

   The Company generated net income of approximately $4.4 million for
the semi-annual period ending June 30, 2006, or $0.35 per fully
diluted share, compared to net income of $1.1 million, or $0.24 per
fully diluted share, for the same period in 2005. Net cash flows
provided by operating activities were $14.1 million for the six months
ended June 30, 2006 compared to $3.0 million for the first half of
2005 and were used primarily to fund exploration and development
activities.
   Oil and gas revenues, before hedging, increased 189% to
approximately $22.5 million for the first six months of 2006 compared
to approximately $7.8 million for the first six months of 2005. The
increase in revenues was primarily due to increased production and the
impact of the RIMCO acquisition in June 2005. Production increased
150% to 2.7 Bcfe for the current period as compared to 1.1 Bcfe for
the first six months of 2005.
   Total operating costs and expenses increased 176% from $5.2
million for the first six months of 2005 to $14.3 million for the
first six months of 2006, due principally to increased acquisition,
development and exploration activity.
   Depreciation, depletion and amortization during the six months
ended June 30, 2006 increased by 381% from the first half of last year
principally due to significantly higher production rates for the
period and higher cost depletion rates per unit from the RIMCO
acquisition.
   Lease operating expenses increased 46% from $2 million for the six
months ending June 30, 2005 to $2.9 million for the same period in
2006. However, on a per Mcfe basis, lease operating costs fell 42% to
$1.06 per Mcfe from $1.82 per Mcfe. This decrease was due to the
increase in natural gas as a percentage of overall production for the
period and a reduction in non-recurring workover expenditures over the
prior period.
   Production taxes increased 178% from $566,000 for the first six
months of 2005 to $1.6 million for the same period in 2006.
   The Company recognized a non-cash gain of $706,000 for the six
months ending June 30, 2006 due to the ineffective portion of the fair
value adjustment to hedge contracts compared to a non-cash loss of
$111,000 for the same period ending June 30, 2005. Whittier recognized
pre-tax losses in oil and gas revenues due to realized settlements of
its price hedge contracts of $1.7 million and $1.1 million during the
six months ended June 30, 2006 and 2005, respectively.
   General and administrative expense increased to $2.6 million for
the first six months of 2006 from $856,000 for the same period in 2005
primarily due to increased staffing and related costs to support the
Company's growing business.

   2006 Outlook

   As of August 1, 2006, production was at a rate of approximately
16.5 Mmcfe per day, net of approximately one Mmcfe per day of shut-in
production in the Duhon #1 well in Lafayette Parish, Louisiana, which
is expected to return to production at the end of August, 2006. The
Company has budgeted $32 million in capital expenditures for 2006, of
which approximately $15.7 million has been spent as of June 30, 2006.
Capital expenditures, excluding acquisitions, are expected to be
funded from internally generated cash flows and additional borrowings
under our revolving credit facility, if necessary. The Company has
plans to drill 26 new wells in the second half of 2006, of which four
wells have already been drilled and completed. Of the remaining 22
wells, the Company has commitments for drilling rigs for 18 wells
before year-end. The Company currently has nine wells that have been
drilled, completed and tested and are awaiting pipeline connections.
These nine wells are expected to add approximately two Mmcfe per day
to existing production rates.

   Conference Call Info

   A conference call will be held at 10:00 a.m. (EDT) today to
discuss the second quarter and first six months of 2006 results. The
conference call will be webcast and can be accessed by logging onto
www.whittierenergy.com in the Investor section or by calling 1 888
222-5310, reference #4320795. For those unable to listen to the live
presentation, the webcast will be archived on the Company's website.
In addition, a telephone replay will be available for 48 hours
beginning at 1:00 p.m. (Eastern), August 15, 2006, and can be accessed
by dialing 1-800-642-1687 and entering pin number 4320795.

   About Whittier Energy Corporation

   Whittier Energy Corporation is an independent oil and gas
exploration and production company headquartered in Houston, Texas,
with operations in Texas, Mississippi and Louisiana. Whittier Energy
also holds non-operated interests in fields located in the Gulf Coast,
Oklahoma, Wyoming and California. To find out more about Whittier
Energy Corporation (Nasdaq:WHIT), visit www.whittierenergy.com.

   Forward-Looking Statements

   This news release includes projections and other "forward-looking
statements" within the meaning of the Private Securities Litigation
Act of 1995. These projections or statements reflect Whittier's
current views about future events and performance. No assurances can
be given that these events or performance will occur as projected and
actual results may differ materially from those projected. Important
factors that could cause the actual results to differ materially from
those projected include, without limitation, the possibility that
recent acquisitions may involve unexpected costs, the volatility in
commodity prices for oil and gas, the presence or recoverability of
estimated reserves, the ability to replace reserves, the availability
and costs of drilling rigs and other oilfield services, drilling and
operating risks, exploration and development risks, and other risks
inherent in Whittier's business that are detailed in its Securities
and Exchange Commission filings. Whittier assumes no obligation and
expressly disclaims any duty to update the information contained in
this news release except as required by law.
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                      WHITTIER ENERGY CORPORATION

                         SELECT OPERATING DATA
                         ---------------------


                                   Three    Three     Six       Six
                                   Months   Months   Months    Months
                                   Ended    Ended    Ended     Ended
                                  June 30, June 30, June 30,  June 30,
                                    2006     2005      2006     2005
                                  ------------------------------------

Production (Mmcfe)                  1,477      597     2,732    1,094
   Gas (Mmcf)                       1,009      297     1,803      523
   Oil (Bbls)                      77,977   49,996   154,982   95,282
Average Daily Production (Mmcfe)     16.2      6.6      15.1      6.0

Average Realized Prices Before
 Hedging
   Oil  (Bbl)                     $ 62.34  $ 51.33  $  60.29  $ 48.81
   Gas (Mcf)                      $  6.67  $  6.24  $   7.29  $  6.01
       Average per Mcfe           $  7.85  $  7.40  $   8.23  $  7.12

Average Realized Prices After
 Effects of  Hedging
   Oil  (Bbl)                     $ 49.71  $ 41.58  $  49.09  $ 37.81
   Gas (Mcf)                      $  6.91  $  5.98  $   7.33  $  5.85
       Average per Mcfe           $  7.35  $  6.46  $   7.62  $  6.08

Expenses/Mcfe
    LOE                           $  1.08  $  1.98  $   1.06  $  1.82
   Production Taxes               $  0.54  $  0.53  $   0.58  $  0.52
   DD&A                           $  2.83  $  1.68  $   2.92  $  1.51
   G&A                            $  0.84  $  0.78  $   0.94  $  0.78

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                       CONDENSED BALANCE SHEETS
                           ($ in thousands)


                                              Six Months    
                                                Ended    Twelve Months
                                               June 30,      Ended
                                                 2006     December 31,
                                              (Unaudited)     2005
                                              ------------------------

Condensed Balance Sheet:
Current assets                                   $ 17,248  $ 19,245
Net oil and gas properties                        120,665    95,096
Other assets                                        2,295     2,210
                                              ------------------------
Total assets                                     $140,208  $116,551
                                              ========================

Current liabilities                              $ 12,286  $ 15,770
Revolving credit facility                          33,000    14,000
Deferred income tax liability                      25,564    23,290
Other liabilities                                   1,330     2,797
Stockholders' equity                               68,028    60,694
                                              ------------------------
Total liabilities and stockholders' equity       $140,208  $116,551
                                              ========================
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                      WHITTIER ENERGY CORPORATION
                 CONSOLIDATED STATEMENTS OF OPERATIONS
          ($ in thousands, except EPS and shares outstanding)
                              (Unaudited)



                   Three Months  Three Months  Six Months   Six Months
                      Ended         Ended        Ended        Ended
                     June 30,      June 30,     June 30,     June 30,
                       2006          2005         2006         2005
                     -------------------------------------------------

Oil and gas revenues $    10,853  $    3,857  $    20,817  $    6,658

Costs and expenses:
    Lease operating
     expenses              1,599       1,180        2,910       1,993
    Production taxes         792         314        1,573         566
    Depreciation,
     depletion, and
     amortization          4,185       1,006        7,968       1,657
    Ineffective
     portion of hedge
     contracts              (310)        (74)        (706)        111
    General and
     administrative
     expenses              1,246         467        2,572         856
                     -------------------------------------------------
Total costs and
 expenses                  7,512       2,893       14,317       5,183
                     -------------------------------------------------
Income from
 operations                3,341         964        6,500       1,475
Other income
 (expense):
Interest and dividend
 income                        5           9           22           9
Interest expense            (134)       (120)        (134)       (224)
   Gain from sales of
    marketable
    securities                 -         309            -         365
   Partnership income         66          66          233         123
                     -------------------------------------------------
Other income
 (expense)                   (63)        264          121         273
                     -------------------------------------------------
Income before income
 taxes                     3,278       1,228        6,621       1,748
Provision for income
 taxes                    (1,095)       (430)      (2,185)       (612)
                     -------------------------------------------------
Net income           $     2,183  $      798  $     4,436  $    1,136
                     =================================================
Basic earnings per
 share:
Net income per share $      0.17  $     0.21  $      0.35  $     0.30
                     =================================================
Weighted average
 number of shares
  outstanding (basic) 12,520,597   3,859,406   12,518,016   3,850,320
                     =================================================
Diluted earnings per
 share:
Net income per share $      0.17  $     0.14  $      0.35  $     0.24
                     =================================================
Weighted average
 number of shares
  outstanding
   (dilutive)         12,587,613   5,757,603   12,634,684   4,953,032
                     =================================================

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                  OPERATING CASH FLOW RECONCILIATION

Operating cash flow represents net income, as determined under
generally accepted accounting principles ("GAAP"), with certain
non-cash items added back. Although a non-GAAP measure, operating cash
flow is widely accepted as a financial indicator of an oil and gas
company's ability to generate cash that can be used to internally fund
exploration and development activities and to service debt. This
measure may also be used in the valuation, comparison, rating and
investment recommendations for companies in the oil and gas
exploration and production industry. Operating cash flow is not a
measure of financial performance under GAAP and should not be
considered as an alternative to cash flows from operating, investing,
or financing activities or as an indicator of cash flows or measure of
liquidity.

                      WHITTIER ENERGY CORPORATION
                          OPERATING CASH FLOW
                           ($ in thousands)
                              (Unaudited)


                                                      Six Months Ended
                                                          June 30,
Cash flows from operating activities                   2006     2005
                                                      ----------------
Net income                                            $ 4,436  $1,136
Adjustments to reconcile net income to operating
 cash flow:
   Depreciation, depletion and amortization             7,968   1,657
   Amortization of debt issue costs                        57       4
   Deferred income tax provision                        1,980     612
   Partnership income                                    (233)   (123)
   Non-cash compensation expense under 123(R)             574       -
  Ineffective portion of hedge loss (gain)               (706)    111
  Gain on sale of marketable securities                     -    (365)
                                                      ----------------
        Cash flow from operations                     $14,076  $3,032
                                                      ================

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