Wrangler West Reports 2010 Operating and Financial Results

CALGARY, April 15 /CNW/ -- 
CALGARY, April 15 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX") announces today's filing on SEDAR (www.sedar.com) of the Company's audited Financial Statements and related Management's
 Discussion and Analysis ("MD&A") for the year ended December 31, 2010
 with comparative data for the year ended December 31, 2009.( )






                                             HIGHLIGHTS

Year ended                                      2009           % Change
December 31                  2010

OPERATIONAL                                                            
HIGHLIGHTS                       

Production                                                             

Crude oil and                                    293                  
NGL (bbls/d)                  282                                   (4)

Natural gas                                    4,972               (21)
(mcf/d)                     3,935

Total (boe/d)                 938              1,122               (16)

Prices                                                                 

Crude oil and                                  58.61                 21
NGL ($/bbl)                 70.82

Natural gas                                     4.47                  
($/mcf)                      4.36                                   (2)

Per boe ($)                                                            

Petroleum and                                  35.14                 13
natural gas
revenue                     39.56

Royalties                                     (5.20)                 21
                           (6.28)

Operating                                    (13.71)                  
expenses                  (13.42)                                   (2)

Field netbacks              19.86              16.23                 22

General and                                   (3.09)                  5
administrative             (3.25)

Interest                   (0.81)             (1.29)               (37)

Current income                                  2.02               (98)
tax recovery                 0.04

Funds flow                                     13.87                 14
from
operations                  15.84

Depletion,                                   (23.50)                  1
depreciation
and accretion             (23.65)

Stock-based                                   (1.32)               (54)
compensation               (0.61)

Future income                                   2.31                  
tax reduction                2.25                                   (3)

Net loss                   (6.17)             (8.64)               (29)

FINANCIAL                                                              
HIGHLIGHTS ($
thousand)                        

Petroleum and                                 14,382                  
natural gas                                                         (6)
revenue                    13,541

Royalties                 (2,150)            (2,128)                  1

Operating                                    (5,613)               (18)
expenses                  (4,592)

General and                                  (1,263)               (12)
administrative            (1,113)

Interest                    (276)              (528)               (48)

Current income                                   827               (98)
tax recovery                   15

Funds flow                                     5,678                  
from                                                                (4)
operations                  5,426

Depletion,                                   (9,619)               (16)
depreciation
and accretion             (8,093)

Stock-based                                    (540)               (61)
compensation                (209)

Future income                                    944               (18)
tax reduction                 771

Net loss                  (2,105)            (3,538)               (40)

Outstanding                                                            
shares
(thousand)                       

Weighted                                       6,397                  1
average -
basic                       6,446

Weighted                                       6,653                  5
average -
diluted                     6,983

Funds flow                                      0.89                  
from                                                                (6)
operations -
basic
($/share)                    0.84

Funds flow                                      0.85                  
from                                                                (8)
operations -
diluted
($/share)                    0.78

Net loss -                                    (0.55)               (40)
basic and
diluted
($/share)                  (0.33)

Total assets                                  40,239               (13)
($ thousand)               34,896





Wrangler West converts petroleum and natural gas reserves and volumes to
 a common unit of measure on a basis of six thousand cubic feet ("mcf")
 of natural gas equals one barrel ("bbl") of oil. Disclosure using
 barrels of oil equivalent ("boe") may be misleading, particularly if
 used in isolation. The basis for the boe conversion ratio of 6 mcf
 equals one bbl is an energy equivalency conversion method, primarily
 applicable at the burner tip. This conversion rate does not represent a
 value equivalency at the wellhead. The Company calculates boe per day
 based on total production for the period divided by the number of days
 during the period.





Wrangler West Energy Corp. presents operating and financial results for
 2010.  Wrangler West is a Canadian junior oil and natural gas
 exploration company focused on generating shareholder value by
 exploring for, developing and producing natural gas and crude oil from
 properties located in the Province of Alberta.


2010 Reserves


As a natural gas and conventional oil producer with a natural gas focus,
 Wrangler West achieved solid reserves growth during 2010, a year of
 continuing weak natural gas markets throughout North America.  Our
 corporate reserves were evaluated by Sproule Associates Limited
 ("Sproule") with an effective date of December 31, 2010.


Reserves totalled 1.6 Mmboe in the proved category and totalled 2.2
 Mmboe in the proved plus probable category which resulted in a net
 present value of $34.0 million, discounted at 10 percent and based on
 Sproule's December 31, 2010 price forecast.







                           Remaining Reserves                         Net Present Value

                              Company (Mboe)                Before Income Tax ($ thousand)

                    Gross       Gross                                                 
                      (1)         (2)      Net(3)      at 0%      at 5%     at 10%     at 15%

Proved
developed                                                                             
producing         1,140.6     1,136.9       944.1     19,489     16,818     14,954     13,572

Proved
developed                                                                             
non-producing       251.7       248.6       211.6      7,872      6,871      6,083      5,452

Proved                                                                                
undeveloped         169.6       169.6       144.1      4,679      4,038      3,519      3,094

  Total                                                                               
  proved          1,561.9     1,555.1     1,299.8     32,040     27,727     24,557     22,118

  Total                                                                               
  probable          632.9       630.7       517.7     16,810     12,200      9,410      7,542

Total proved                                                                          
plus probable     2,194.8     2,185.8     1,817.4     48,850     39,927     33,966     29,659







(1)   Gross Reserves: the remaining reserves attributable to the
      property.

(2)   Company Gross Reserves: the Company's working interest share of
      the remaining reserves attributable to the property before
      deduction of any royalties.

(3)   Company Net Reserves: gross remaining reserves of properties in
      which the Company has an interest, less all crown, freehold, and
      overriding royalties and interests owned by others.








2010 Operations and Financial Results


In 2010, Wrangler West conducted an active exploration program while
 focusing on maintaining the strength of our balance sheet. Managing our
 cash flow, operating costs and controlling our capital expenditures
 were high priorities in 2010.  During the year, Wrangler West developed
 new prospects that benefited from both drilling incentives and lower
 royalties initiated by the Province of Alberta.


We drilled nine wells (five natural gas; three crude oil; one dry and
 abandoned).  Two of the successful oil wells commenced production in
 the Grand Forks area during 2010 first quarter.  A third oil well in
 the Riviere area began producing during 2011 first quarter.  Two
 natural gas wells commenced production the Stanmore/Trochu area during
 2010. In 2011 first quarter, a further two natural gas wells commenced
 production in the Trochu area.  One natural gas well drilled in 2010 is
 cased and standing. In Grand Forks, we completed a small oil
 acquisition, built a pipeline and converted a well to water injection
 to optimize production from the oil pool.


Wrangler West's exploration results created an increase of 372 Mboe of
 proved plus probable reserves in addition to 248 Mboe of net
 revisions.  Wrangler West's 2010 finding and development costs on a
 total proved reserves basis were less than $12.00 per boe based on our
 capital program of $7.4 million.


Wrangler West's production in 2010 was 70 percent weighted to natural
 gas.  The average price for this commodity has hovered near $4.00 per
 mcf for the past 24 months.  Even with new production additions
 throughout 2010, funds flow from operating activities were slightly
 lower in 2010 at $5.4 million, compared to $5.7 million in 2009.


For 2010, Wrangler West produced an average of 938 boe per day which was
 approximately 16 percent lower than 2009 average production of 1,122
 boe per day. In 2010 first quarter, Wrangler West completed the
 disposition of non-operated natural gas assets in the Craigmyle area. 
 The disposition removed 150 boe per day from our production base and
 338.5 Mboe from our proved reserves.  Total proceeds of $3.5 million
 from the asset sale were applied to bank indebtedness.  In the 2010
 second quarter, Wrangler West secured a new $12 million credit
 facility.  At year-end, the Company had drawn $6.4 million on the new
 facility.


Industry Conditions


The natural gas market in North America entered the winter heating
 season with high storage levels.  After a colder-than-normal winter,
 during which withdrawals were higher than the five-year average, the
 market continues to have an oversupply of natural gas.  Demand across
 the continent has not recovered sufficiently to balance supply and
 demand as consumers struggle with the effects of a still-weakened
 economy.  Natural gas drilling activity in the United States continued
 for most of 2010 and only began to slow late in the year as the
 economics of $4.00 per mcf natural gas impacted exploration and
 production ("E&P") corporate earnings and balance sheets. Historical
 hedging and derivative opportunities to capitalize on natural gas price
 volatility have vanished.  As mature natural gas production declines,
 we will better understand the future opportunities for natural gas
 producers in North America.


As the year ended, it was apparent much of the E&P industry in North
 America had shifted focus to liquids-rich natural gas shale plays or
 reallocated capital to crude oil projects where higher returns were
 possible.  Oil prices are strong as the world responds to political
 upheaval and supply uncertainty from international producing regions. 
 We anticipate merger and acquisition activity will increase throughout
 2011 in light of the current robust capital markets for
 commodities-based assets.


2011 Outlook


These are challenging times for junior producers and competition remains
 fierce.  Wrangler West continues to deploy our in-house expertise to
 manage the Company's assets in a complex business environment.  For
 junior producers, the exploration cycle is taking longer with
 significantly more time required to assemble land and data, to maximize
 the full potential of prospects and to arrive at the drill-ready
 decision.


We are engaged in an active geophysical program and have compiled an
 inventory of drilling opportunities for 2011.  Most of the new
 inventory developed by our technical team will be oil-prone targets,
 the focus of Wrangler West's 2011 capital program approved by the board
 of directors at $8.0 million.


Our objective for 2011 is to increase Wrangler West's exposure to oil,
 add reserves and increase daily production.  We intend to be active
 with the drill bit and to pursue all opportunities that fit within our
 corporate risk profile.  In the year ahead, Wrangler West will pursue
 merger, acquisition and disposition strategies with the potential to
 achieve our objectives for growth and to increase shareholder value.








Wrangler West Energy Corp.
Balance Sheets
December 31, 2010 and 2009




                                                                                                 
                                                       2010                                  2009

Assets                                                                                           

Current assets                                                                                   

   Accounts                                                           $                          
   receivable                  $                                                        1,409,114
   (note 8 (a))                                   1,406,117

   Income tax                                                                                    
   receivable                                        73,546                               531,320

   Prepaid                                                                                       
   expenses                                         144,475                               370,617

                                                                                                 
                                                  1,624,138                             2,311,051

                                                                                                 

Property and                                                                                     
equipment (note                                  33,271,587                            37,927,574
3)                                                           

                      $                          34,895,725             $                        
                                                                                       40,238,625

                                                                                                 

Liabilities and                                                                                  
shareholders'
equity                                                       

Current                                                                                          
liabilities                                                  

   Bank                                                               $                          
   indebtedness                                                                         8,730,519
   (note 4)           $                           6,354,223

   Accounts                                                      
   payable
         and
   accrued                                                                                       
   liabilities                                    3,259,522                             3,358,013

                                                                                                 
                                                  9,613,745                            12,088,532

                                                                                                 

Asset                                                                                            
retirement                                        1,872,755                             2,333,765
obligation
(note 5)                                                     

                                                                                                 

Future income                                                                                    
tax (note 6)                                      3,608,345                             4,340,557

                                                 15,094,845                                      
                                                                                       18,762,854

                                                                                                 

Shareholders'                                                                                    
equity                                                       

   Share                                                                                         
   capital                                                                             11,390,557
   (note 7)                                      11,598,557

   Contributed                                                                                   
   surplus                                                                              4,300,823
   (note 7(e))                                    4,523,342

   Retained                                                                                      
   earnings                                       3,678,981                             5,784,391

                                                 19,800,880                                      
                                                                                       21,475,771

                                                                                                 

                       $                         34,895,725             $                        
                                                                                       40,238,625












Wrangler West Energy Corp.
Statements of Operations, Comprehensive Loss
and Retained Earnings
Years ended December 31, 2010 and 2009




                                                                                                
                                              2010                                          2009

Revenue                                                                                         

  Petroleum and                                                $                                
  natural gas                           13,541,032                                    14,382,179

  Royalties                                                                                    
                                       (2,149,685)                                   (2,127,718)

                                                                                                
                                        11,391,347                                    12,254,461

                                                                                                

Expenses                                                                                        

  Operating                                                                                     
                                         4,591,862                                     5,613,405

  General and                                           
  administrative                                                                                
  (note 3)                               1,112,656                                     1,262,770

  Interest                                                                                      
                                           276,164                                       528,049

  Stock-based                                           
  compensation
  (notes 3 and                                                                                  
  7)                                       208,740                                       540,072

  Depletion,                                            
  depreciation                                                                                  
  and accretion                          8,093,469                                     9,618,996

                                                                                                
                                        14,282,891                                    17,563,292

Loss before                                                                                    
income tax                             (2,891,544)                                   (5,308,831)

                                                                                                

Current income                                          
tax recovery
(note 6)                                  (15,126)                                     (827,370)

Future income                                           
tax reduction
(note 6)                                 (771,008)                                     (943,727)

                                                                                               
                                         (786,134)                                   (1,771,097)

                                                                                                

Net loss and                                            
   other
comprehensive                                                                                  
loss                                   (2,105,410)                                   (3,537,734)

                                                                                                

Retained                                                
earnings,
beginning of                                                                                    
year                                     5,784,391                                     9,322,125

                                                                                                

Retained                                                
earnings, end of       $                                     $                                  
year                                     3,678,981                                     5,784,391

                                                                                                

Loss per share -                                        
basic and                                $                                                   $  
diluted (note 7                                                                                
(f))                                        (0.33)                                        (0.55)

Weighted average                                        
common shares
outstanding -
    basic and                                                $                                  
diluted                                  6,445,759                                     6,397,265











Wrangler West Energy Corp.
Statements of Cash Flows
Years ended December 31, 2010 and 2009




                                                       
                                                                                          
                                             2010                                     2009

Cash provided by                                       
(used in):                                                                                

                                                                                          

Operating                                                                                 

                       $                                        $                        
    Net loss                          (2,105,410)                              (3,537,734)

    Items not                                          
    involving cash                                                                        

      Depletion,                                       
      depreciation                               
      and                                                                                 
      accretion                         8,093,469                                9,618,996

                                                       
      Stock-based                                                                         
      compensation                        208,740                                  540,072

      Future                                           
      income tax                                                                         
      reduction                         (771,008)                                (943,727)

                                                                                          
                                        5,425,791                                5,677,607

    Change in                                          
    non-cash
    operating                                    
          working                                                                        
    capital                               437,490                              (1,884,451)

                                                                                          
                                        5,863,281                                3,793,156

                                                                                          

Financing                                                                                 

    Decrease in                                        
    bank
    indebtedness,
         original
    credit                                                                               
    facility                          (8,730,819)                              (1,542,434)

    Increase in                                        
    bank
    indebtedness,
    new credit                                                                            
          facility                      6,354,523                                        -

    Issuance of                                                                           
    common shares                         112,500                                   56,250

                                                                                         
                                      (2,263,796)                              (1,486,184)

Investing                                                                                 

    Additions to                                       
    petroleum and
    natural gas
                                                                                         
    properties                        (7,385,966)                              (2,649,781)

    Dispositions                                       
    of petroleum
    and natural
    gas                                          
                                                                                          
    properties                          3,635,549                                        -

    Change in                                          
    non-cash
    investing                                    
          working                                                                         
    capital                               150,932                                  342,809

                                                                                         
                                      (3,599,485)                              (2,306,972)

                                                                                          

    Cash and cash                                      
    equivalents,
        beginning
    and end of                                                                            
    year                                        -                                        -

    Supplementary                                      
    cash flow
    information                                                                           

      Interest                    $                          $                            
      paid                                303,113                                  520,306

      Income tax                              $        
      paid                                                   $                            
      (received)                        (472,305)                                  720,031






Reader Advisory 


This news release contains forward-looking statements about potential
 new crude oil and natural gas drilling, production operations, changes
 in reserves, sources and use of capital and expected future operations.
 Although Wrangler West believes the expectations reflected in these
 forward-looking statements are reasonable, undue reliance should not be
 placed on them because the Company can give no assurance 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. A more detailed discussion of forward-looking
 statements is provided in Wrangler West's Management's Discussion and
 Analysis for the year ended December 31, 2010 which is filed on SEDAR (www.sedar.com).  The forward-looking statements contained in this news release are
 made as of the date hereof and Wrangler West 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.


Corporate Profile


Wrangler West is a Canadian junior oil and natural gas producer which
 explores for and develops crude oil and natural gas production assets
 in the Province of Alberta. Since inception, our mandate has been to
 use the drill bit to add shareholder value. Disciplined management of
 our operations and production portfolio creates sufficient funds flow
 to support ongoing operations. Wrangler West intends to continue to
 reinvest funds flow from operations and other available capital to
 protect current and add future value.  Wrangler West trades on the TSX
 Venture Exchange under the symbol "WX".


Additional Information


Wrangler West files additional shareholder and public information on
 SEDAR accessible at www.sedar.com. This includes the Statement of Reserves Data and Other Oil and Gas
 Information Form NI 51-101 F1, F2 and F3 effective December 31, 2010 as
 well as the Notice of Annual Meeting of Shareholders, the 2011
 Management Information Circular and the Form of Proxy in preparation
 for Wrangler West's Annual Meeting scheduled for May 19, 2011 in
 Calgary.


The TSX Venture Exchange has not reviewed, and does not accept
 responsibility for, the adequacy or accuracy of this news release.


 


 


 


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p bWrangler We/bbst Energy Corp./bbr/ Steven F. Johnsonbr/ President and Chief Executive Officerbr/ a href="mailto:[e-mail]"[e-mail]/a /p p align="justify" telephone:  [phone] /p 

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