Wild Stream Exploration Inc. Announces Second Quarter 2011 Operating and Financial Results and Re-Affirms 2011 Guidance

Wild Stream Exploration Inc. (the "Company" or "Wild Stream") (TSX VENTURE:WSX)
is pleased to announce its operating and financial results for the three and six
months ended June 30, 2011. Effective January 1, 2011, the Company has prepared
its financial statements under International Financial Reporting Standards
("IFRS"). Prior year comparative amounts have been restated to reflect results
as if Wild Stream had always prepared its financial results using IFRS. Selected
financial and operational information is outlined below and should be read in
conjunction with the interim financial statements and the related MD&A. These
filings will be available at www.wildsr.com and www.sedar.com. 




2011 Financial and Operating Highlights


                             Three months               Six months          
                                    ended                    ended          
                                  June 30, Percent         June 30, Percent 
                             2011    2010   Change    2011    2010   Change 
                          --------------------------------------------------
Financial (thousands of                                                     
 dollars except share                                                       
 data)                                                                      
                                                                            
Petroleum and natural gas                                                   
 revenue                   25,166   9,541      164  46,055  16,521      179 
Funds from operations (1)  14,459   5,418      167  26,590   8,804      202 
 Per share - basic           0.25    0.15       67    0.51    0.25      104 
           - diluted         0.24    0.13       85    0.47    0.22      114 
Net earnings (loss)         4,214     567      643   4,878     652      648 
 Per share - basic           0.07    0.02      250    0.09    0.02      350 
           - diluted         0.07    0.01      600    0.09    0.02      350 
Capital expenditures, net 188,188  17,897      952 229,815  49,976      360 
Corporate acquisitions          -   1,518     (100)      -   8,493     (100)
Working capital                                                             
 deficiency (4)                                     62,557   9,481      560 
Shareholders' equity                               413,113 146,670      182 
Weighted average shares                                                     
 (thousands)                                                                
 Basic                     57,567  36,938       56  52,408  35,125       49 
 Diluted                   61,774  42,347       46  56,490  40,458       40 
Shares Outstanding, end of                                                  
 period (thousands)                                                         
 Basic                                              66,382  37,003       79 
 Diluted                                            74,917  46,687       60 
                                                                            
Operating (6:1 boe                                                          
 conversion)                                                                
                                                                            
Average daily production                                                    
 Liquids (bbls/d)           3,273   1,515      116   3,300   1,261      162 
 Natural gas (mcf/d)        1,657   1,372       21   1,335   1,102       21 
 Barrels of oil equivalent                                                  
  (2)(boe/d)                3,549   1,744      103   3,522   1,445      144 
                                                                            
Netbacks                                                                    
 Operating                                                                  
  Petroleum and natural                                                     
   gas revenue(4)           75.63   60.80       24   70.52   63.72       11 
  Royalties                (11.78)  (7.92)      49  (10.07)  (8.42)      20 
  Operating expenses       (14.00) (13.20)       6  (13.34) (14.08)      (5)
  Transportation expenses   (2.33)  (1.91)      22   (2.48)  (1.80)      38 
                          -----------------        -----------------        
                                                                            
Operating netback ($/boe)   47.52   37.77       26   44.63   39.42       13 
                          -----------------        -----------------        
                          -----------------        -----------------        
                                                                            
Corporate                                                                   
 netback(3)($/boe)          44.79   34.14       31   41.71   33.67       24 
                                                                            
Wells drilled                                                               
 Gross                         11       7       57      27      18       50 
 Net                         10.2     6.8       50    24.9    16.2       54 
 Success                      100%     86%       -     100%     94%       - 



(1) Management uses funds generated by operations to analyze operating
performance and leverage. Funds generated by operations as presented do not have
any standardized meaning prescribed by IFRS and therefore it may not be
comparable with the calculation of similar measures for other entities. The
reconciliation between funds flow from operations and cash flow from operating
activities can be found in the MD & A. 


(2) Boe conversion ratio for natural gas of 1 Boe: 6 Mcf has been used, which is
based on an energy equivalency conversion method primarily applicable at the
burner tip and does not necessarily represent a value equivalency at the
wellhead. 


(3) Corporate netbacks are calculated as the operating netback less general and
administrative expenses, financial charges asset retirement obligations and
transaction costs. 


(4) Excludes unrealized risk management contracts.

Highlights



--  Funds flow from operations increased 167% to $14.5 million ($0.25 per
    share - basic), compared to $5.4 million ($0.15 per share - basic) in
    the second quarter of 2010.

--  Despite having 50% of our total production shut in during April, Wild
    Stream increased production by 2% to 3,549 boe/d over the first quarter
    of 3,496 boe/d and a 103 percent increase from 1,744 boe/d in the
    comparable quarter of 2010.

--  Wild Stream closed its previously announced $175 million, 1,800 boe/d
    acquisition of focused, high working interest, operated producing oil
    and gas assets in southwest Saskatchewan from a senior energy producer
    ("the Property Acquisition"). This acquisition closed at the end of the
    quarter and accordingly had minimal impact on the operating and
    financial results.

--  Wild Stream's current production is more than 6,100 boe/d (90% oil) and
    we re-affirm our 2011 average production guidance of 5,000 - 5,200 boe/d
    with an exit rate in excess of 6,800 boe/d. Our planned capital
    expenditures remain at $135 million.

--  During the second quarter Wild Stream incurred drilling and completion
    capital expenditures of $14.6 million. The Company drilled 11 (10.2 net)
    oil wells with a 100% success rate including 1.9 net wells in Shaunavon,
    8.0 net wells in Dodsland and 0.3 net wells in Garrington.

--  Additional capital expenditures of $14.4 million were focused on the
    expansion of our core land holdings in Shaunavon and Dodsland through
    the acquisition of approximately 82 net sections of land.

--  Wild Stream continued to expand its position in the Beaverhill Lake
    light oil resource play through crown land sales and a partnership with
    a senior oil and gas producer. The Company has accumulated 23 (15.25
    net) sections of highly prospective lands on this play.

--  Expanded our hedge position to include 1,200 bbls/d of oil at a fixed
    WTI price of Cdn $98.66/bbl in 2011 and 700 bbls/d of oil at a fixed WTI
    price of Cdn $103.33/bbl in 2012.

--  Raised $88.9 million through the issuance of 7.7 million shares at a
    price of $11.55 per share and $5.1 million through the exercise of 2.8
    warrants.

--  During the quarter Wild Stream increased its credit facility to $160
    million from $70 million. 

--  Wild Stream's balance sheet remains strong with approximately $100
    million of unutilized bank lines at June 30, 2011.



Operations Review

With the continued success of our drilling programs our production volumes have
begun a meaningful ramp up. Average production in July exceeded 5,800 boe/d and
we anticipate averaging greater than 6,200 boe/d in August setting the stage to
exceed our exit rate guidance of 6,800 boe/d. We have one drilling rig active in
the Shaunavon area and as one rig active in Dodsland.


Shaunavon area

During the quarter, Wild Stream drilled 2 (1.9 net) horizontal oil wells
achieving a 100 percent success rate. Subsequent to the end of the quarter the
Company drilled an additional 4 (3.7 net) Upper Shaunavon wells and 4 (3.9 net)
Lower Shaunavon wells at 100% success rate. Current production from the
Shaunavon area is in excess of 4,000 bbls/d of oil.


We have licensed locations in both the Upper and Lower Shaunavon on our recently
acquired northern lands from the Property Acquisition. The majority of the
remaining second half 2011 locations will be focused on these lands as we begin
to de-risk and validate the prospectivity with 3-5 wells anticipated in each of
the Upper and Lower Shaunavon formations on these lands.


Lower Shaunavon formation



--  The pilot waterflood is expected to commence injection in early
    September. Based on the results of other area waterfloods we anticipate
    preliminary results in the first quarter of 2012. 
--  In our southern exploration block, Wild Stream recently drilled a second
    horizontal test well. The well is waiting on completion and combined
    with our first horizontal test well, should begin validating the type
    curve for this area. 
--  Wild Stream has been modifying completion techniques on several recent
    Lower Shaunavon horizontal wells to enhance long term well rates with
    encouraging initial results. 
--  The northern extension of the Lower Shaunavon formation will be tested
    with 3-5 locations during the second half of 2011, with the first well
    expected to spud by late August, 2011.


Upper Shaunavon formation


--  Waterflood expansion continues in the Whitemud pool 
    --  13 injection wells are currently providing pressure support. 
    --  We have observed waterflood response in 6 of the 22 horizontal wells
        drilled. 
    --  Two water source wells have been placed on production to provide
        makeup water for the flood 
    --  Facilities debottlenecking is occurring at both batteries to enhance
        increased fluid throughput.
--  Southern step out wells 
    --  7 wells drilled to date at 100% success rate 
        --  2 with 30 day IP's of approximately 250 bbls/d 
        --  1 with 30 day IP of approximately 100 bbls/d 
        --  2 with 30 day IP's of approximately 30 bbls/d 
        --  2 waiting on completion
--  Northern wells 
    --  7 wells surveyed 
    --  3-5 locations to be drilled by year end 2011 with first well to spud
        by early September, 2011.


Other activities


--  Wild Stream has identified significant potential for horizontal drilling
    in the Cantuar formation on our northern Shaunavon acreage. Two wells
    are being licensed with the drilling of the first well expected in the
    fourth quarter of 2011. 
--  We are working on $5 million of facilities and production optimization
    that should add production at a cost of approximately $10,000-$15,000
    per producing boe. 
--  Wild Stream initiated an ASP study on a recently acquired Upper
    Shaunavon pool.  
    --  Successful ASP floods have been implemented by other operators in
        the area at the Instow, Bone Creek and Gull Lake. 
    --  Wild Stream will likely implement a pilot ASP flood in second half
        of 2012.



Dodsland area

Active drilling in the Dodsland area commenced on May 30, 2011. To date Wild
Stream has drilled 12 (12 net) wells at a 100% success rate. We will see an
additional 4 wells drilled this quarter with the remaining 6 wells scheduled for
the fourth quarter of 2011. Current production from the Dodsland area is in
excess of 900 boepd (90% oil).


Pilot waterflood



--  Five of six horizontal wells are on production. 
--  Injection facility construction is complete and eight injection wells
    have been converted and tied-in with SIR approval pending to commence
    injection. 
--  Injection to commence with SIR approval which is expected by early
    September, 2011. 
--  Preliminary results are expected by the first quarter of 2012


Southern exploration lands


--  Purchased 31 sections at April 2011 crown land sale. 
--  Six wells have been drilled to date. 
    --  Four wells on production at average 30 day rates of 40 bbls/d of
        oil. 
    --  Two wells are waiting on completion. 
    --  Three additional step-out wells remaining to be drilled in the third
        quarter.


Downspacing 


--  Industry results at 40 acre spacing (16 horizontal wells per section)
    continue to show similar type curve performance as those wells drilled
    on 80 acre spacing (8 horizontal wells per section). 
--  The down-spacing results have the potential to double Wild Stream's
    inventory. 
--  Wild Stream will commence its first 40 acre spacing (16 well per
    section) in the fourth quarter of 2011


Swan Hills


--  Wild Stream continued to expand its position in the Beaverhill Lake
    light oil resource play through additional crown land sales and a
    partnership with a senior oil and gas producer. Wild Stream has
    currently accumulated 23 gross (15.25 net) sections of highly
    prospective lands on the play. 
--  Wild Stream expects to spud the first 50% working interest well by early
    September, 2011.



An additional 30,000 stock options have been granted to certain directors and
officers of the Company.


Outlook

Wild Stream continues to successfully execute on its business plan of providing
per share value growth through its combined exploration, exploitation and
enhanced oil recovery strategies. At the heart of our success to date is our
ability to stay focused on our core commodity in our core areas. In excess of
90% of our production comes from southwest Saskatchewan while our corporate
commodity mix has stayed weighted at greater than 90% oil.


The production impacts seen in the second quarter of this year are expected to
mitigated for next year's breakup period. Ongoing pipeline projects in the
fourth quarter of 2011 and first quarter of 2012 will increase our pipeline
connected volumes from the current 60% level to in excess of 85% of our
corporate production.


Wild Stream has seen an approximate 10% increase in the costs of services in the
first half of 2011. In spite of increased costs we have optimized our drilling
program to maintain our $135 million capital guidance while leaving our 2011
average production guidance of 5,000 - 5,200 boe/d with an exit rate exceeding
6,800 boepd intact.


Wild Stream has more than 1,000 net risked drilling locations in our current
inventory. This inventory provides the fuel to grow our reserves, production and
net asset value in the future. The defined capital inventory of in excess of
$1.7 billion has the potential to add in excess of $20 per share to our value
over the long term. 


We remain committed to increasing shareholder value through a combination of
exploration, strategic acquisitions and subsequent exploitation while
maintaining a conservative approach to balance sheet management.


Additional corporate information can be found in our August corporate
presentation on our website at www.wildsr.com.


FORWARD LOOKING STATEMENTS: This press release contains forward-looking
statements. More particularly, this press release contains statements concerning
Wild Stream's drilling plans, future growth plans, reserves and values
attributable thereto, per share growth, Wild Stream's growth strategy, the
nature of the assets acquired pursuant to the Property Acquisition and the
benefits of the Property Acquisition. In addition, the use of any of the words
"guidance", "initial, "scheduled", "can", "will", "prior to", "estimate",
"anticipate", "believe", "potential", "should", "unaudited", "forecast",
"future", "continue", "may", "expect", "project", and similar expressions are
intended to identify forward-looking statements. The forward-looking statements
contained herein are based on certain key expectations and assumptions made by
the Company, including expectations and assumptions concerning the success of
optimization and efficiency improvement projects, the availability of capital,
current legislation, receipt of required regulatory approval, the success of
future drilling and development activities, the performance of existing wells,
the performance of new wells, Wild Stream's growth strategy, general economic
conditions, availability of required equipment and services and prevailing
commodity prices. Although the Company believes that the expectations and
assumptions on which the forward-looking statements are based are reasonable,
undue reliance should not be placed on the forward-looking statements because
the Company can give no assurance that they will prove to be correct. Since
forward-looking statements address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks. These include, but are not limited to, risks associated with the oil
and gas industry in general (e.g., operational risks in development, exploration
and production; delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of reserve
estimates; the uncertainty of estimates and projections relating to production,
costs and expenses, and health, safety and environmental risks), commodity price
and exchange rate fluctuations, changes in legislation affecting the oil and gas
industry and uncertainties resulting from potential delays or changes in plans
with respect to exploration or development projects or capital expenditures.
Certain of these risks are set out in more detail in the Company's Annual
Information Form which has been filed on SEDAR and can be accessed at
www.sedar.com or Wild Stream's website www.wildsr.com. 


The forward-looking statements contained in this press release are made as of
the date hereof and the Company undertakes no obligation to update publicly or
revise any forward-looking statements or information, whether as a result of new
information, future events or otherwise, unless so required by applicable
securities laws.


Meaning of Boe: When used in this press release, Boe means a barrel of oil
equivalent on the basis of 1 Boe to 6 thousand cubic feet of natural gas. Boe
per day means a barrel of oil equivalent per day. Boe's may be misleading,
particularly if used in isolation. A Boe conversion ratio of 1 Boe for 6
thousand cubic feet of natural gas is based on an energy equivalency conversion
method primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


This press release shall not constitute an offer to sell, nor the solicitation
of an offer to buy, any securities in the United States, nor shall there be any
sale of securities mentioned in this press release in any state in the United
States in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such state.