Wrangler West Reports 2011 Operating and Financial Results

Share Name	Share Symbol	Market	Type
Wrangler West Energy Corp	TSXV:WX	TSX Venture	Common Stock

Wrangler West Energy Corp (TSXV:WX)
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CALGARY, April 18, 2012 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") announces today's filing on SEDAR of the Company's audited Financial Statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2011 with comparative data for the year ended December 31, 2010.( )Effective January 1, 2011, Wrangler West began preparing financial statements and comparative information according to International Financial Reporting Standards. Previously, the Company prepared financial statements according to Canadian generally accepted accounting principles. All documents may be viewed at www.sedar.com. Year ended Dec 31 2011 2010 % Change OPERATIONAL HIGHLIGHTS Production Crude oil and 189 NGL (bbls/d) 282 (33) Natural gas 4,263 3,935 (mcf/d) 8 Total 899 production 938 (4) (boe/d) Prices Crude oil and 86.46 70.82 22 NGL ($/bbl) Natural gas 3.78 ($/mcf) 4.36 (13) Per boe ($) Petroleum and 36.09 39.55 natural gas (9) revenue Royalties (6.40) (6.28) 2 Operating (14.17) expenses (13.41) 6 Netback 15.52 19.86 (22) General and (3.82) administrative (3.33) 15 Interest (0.49) (0.81) (40) Current income - tax benefit 0.04 (100) Funds flow 11.21 15.76 from (29) operations Share-based (0.33) payments (0.65) (49) Depletion and (15.16) depreciation (16.39) (8) Impairment of - property, (3.73) (100) plant and equipment Gain (loss) on (2.84) sale of assets 0.37 (868) Accretion (0.20) (0.22) (9) Deferred 1.83 income tax 1.26 45 benefit Net loss (5.49) (3.60) 53 FINANCIAL HIGHLIGHTS ($ thousand) Petroleum and 11,842 13,541 natural gas (13) revenue Royalties (2,099) (2,150) (2) Operating (4,651) expenses (4,592) 1 General and (1,252) administrative (1,141) 10 Interest (162) (276) (41) Current income tax benefit - 15 (100) Funds flow 3,678 5,397 from (32) operations Share-based (108) payments (222) (51) Depletion and (4,975) depreciation (5,613) (11) Impairment of property, - (1,276) (100) plant and equipment Gain (loss) on (933) sale of assets 126 (840) Accretion (64) (74) (14) Deferred 599 income tax 431 39 benefit Net loss (1,803) (1,231) 46 Funds flow 0.57 from 0.84 (32) operations - basic ($/share) Funds flow 0.56 from 0.82 (32) operations - diluted ($/share) Net loss - (0.28) basic and (0.19) 47 diluted ($/share) Total assets 27,964 34,959 ($ thousand) (20) 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. ("Wrangler West" or the "Company") presents operating and financial results for the year ended December 31, 2011. 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. 2011 Highlights -- $11.8 million of revenue -- $3.7 million of funds flow from operations -- $4.9 million in capital expenditures -- renewed credit facility Review of 2011 For the year ended December 31, 2011, Wrangler West produced 899 barrels of oil equivalent ("boe") per day, a decrease of four percent compared to the same period one year ago. Wrangler West's production base is approximately 80 percent natural gas. During a period of strong oil prices in 2011, Wrangler West maximized the value of Grand Forks crude oil properties through the sale of this asset for $4.9 million. In 2011, the Company's netback was lower by 22 percent as the price Wrangler West received for natural gas declined 13 percent from the same period in 2010. For the year ended December 31, 2011, crude oil prices were 22 percent higher, compared to the same period one year ago. Total operating expenses for 2011 increased a modest one percent compared to the same period in 2010. In 2011, Wrangler West conducted exploration activities using available cash flow and the credit facility. The Company drilled and cased two natural gas wells and one oil well during 2011. At year-end, two wells were on production and one well was deemed not economic to tie-in at prevailing natural gas prices. During 2011 fourth quarter, Wrangler West renewed its credit facility and has in place a credit agreement totaling $13.4 million, of which $8.4 million is a revolving operating demand loan and $5.0 million is a non-revolving demand loan dedicated to acquisitions and development. Throughout 2011, the Company undertook seismic programs that provided geophysical data to increase our land position for oil prospects. Wrangler West pursued a defensive strategy focused on conventional oil exploration, rather than horizontal resource exploration which features high costs and well-funded, aggressive competition for resource play assets. Conventional oil drilling is compatible with Wrangler West's capital and financial structure. RemainingReserves Net PresentValue Company(Mboe) Before Income Tax($thousand) Gross1 Gross2 Net3 at0% at5% at 10% at 15% Proved 942.1 942.1 775.5 developed producing 18,208 15,407 13,443 11,988 Proved 192.8 192.8 162.7 developed non-producing 5,469 4,571 3,881 3,339 Proved 132.7 132.7 113.3 undeveloped 3,684 2,997 2,455 2,025 Total 1,267.6 1,267.6 1,051.5 proved 27,362 22,976 19,779 17,353 Total 730.0 730.0 593.9 probable 22,391 16,129 12,228 9,323 Totalproved 1,997.7 1,997.7 1,645.4 plus probable 49,753 39,105 32,007 26,676 1Gross Reserves remaining reserves attributable to the property. Company's working interest share of the 2 Company Gross Reserves remaining reserves attributable to the property, before deduction of any royalties. gross remaining reserves of properties 3Company Net Reserves in which the Company has an interest, less allcrown, freehold, and overriding royalties and interest ownedby others. Wrangler West's corporate crude oil and natural gas reserves were evaluated by Sproule Associates Limited ("Sproule") with an effective date of December 31, 2011. Reserves totaled 1.3 MMboe in the proved category and 2.0 MMboe in the proved plus probable category resulting in a net present value of $32 million discounted at ten percent and based on Sproule's December 31, 2011 commodity price forecast. Business Environment Natural gas exploration, especially "dry" gas, remains economically challenging due to the oversupply condition the industry continues to face. Elevated drilling activity for liquids-rich natural gas also produces associated natural gas which is then added to already high storage volumes. The unseasonably warm North American winter resulted in lower-than-historical rates of drawdown from natural gas storage. The slow economic recovery also contributed to natural gas prices tumbling to their lowest value in the past ten years. It has been said, "When those who know it best like it the least, a great opportunity is created for the contrarian". The natural gas industry will undergo another challenging year throughout 2012 as the bottom of the price cycle continues to be redefined. A natural gas price of $1.75 per mcf barely covers operating expenses, royalties and overhead, let alone provides any return on invested capital. Shut-in natural gas will be a prominent feature of any recovery scenario. Drilling activity for oil and liquids-rich natural gas remains robust. Consumers appear to have adapted to a higher oil price, in the range of $100 per barrel, as the North American economy slowly improves. However, the supply/demand imbalance for oil and natural gas in the global economy represents a significant arbitrage opportunity for export of these commodities currently trapped in North America. The foregone revenue stream will attract both government support and sophisticated capital. Long-term energy policy entered political arenas on both sides of the Canadian border with the Keystone pipeline being interrupted by the United States' federal election and potential environmental issues requiring a managed solution. With the lack of export opportunities, Northern Gateway appears to be the Canadian alternative of choice although the project is likely at least a half a decade away from providing a viable horizon to potential new markets. Positioning Wrangler West In the long-term, anticipated market structure changes will provide access to new and growing demand for oil and natural gas which will be positive for the industry. However, in the near term, small conventional oil and natural gas producers will continue to struggle with the constraints of the current business environment. Rewards will only be realized through successful exploration by companies that can survive by prudently managing through the current down cycle. In 2011, Wrangler West replaced oil and natural gas reserves even as the backdraft from the "shale gale" continued to erode the value of natural gas assets. To manage through this storm, Wrangler West disposed of crude oil assets which enhanced the balance sheet (under IFRS, the "Statement of Financial Position") and positioned the Company to capitalize on any upturn. Throughout 2012, in anticipation of continued weakness in natural gas prices, Wrangler West expects to deploy available capital to conventional oil exploration prospects that meet our risk versus reward criteria. At the same time, we will continually assess opportunities for mergers and acquisitions to determine their potential to provide shareholder value. WRANGLERWEST ENERGY CORP. STATEMENTS OF FINANCIAL POSITION (Stated in thousands of dollars) December December January 31, 31, 1, 2011 2010 2010 Assets Current assets Accounts $ 756 $ 1,406 $ 1,409 receivable Income tax receivable - 74 531 Prepaid expenses 212 144 371 Assets held for sale - - 4,084 968 1,624 6,395 Exploration and evaluation - - 44 Property, plant and equipment 26,995 33,334 32,114 $ 27,963 $ 34,958 $ 38,553 Liabilities and shareholders' equity Current liabilities Bank $ 3,156 $ 6,354 $ 8,731 indebtedness Accounts payable and accrued Liabilities 1,999 3,260 3,358 Decommissioning obligations related to assets held for sale - - 573 5,155 9,614 12,662 Decommissioning obligations 2,369 2,705 2,024 Deferred income tax 2,804 3,403 3,833 10,328 15,722 18,519 Shareholders' equity Share capital 12,402 12,402 12,194 Contributed surplus 4,740 4,538 4,313 Retained earnings 493 2,296 3,527 17,635 19,236 20,034 Commitments $ 27,963 $ 34,958 $ 38,553 WRANGLER WEST ENERGYCORP. STATEMENTS OF OPERATIONS AND COMPREHENSIVELOSS (Stated in thousands of dollars, except per share amounts) Year ended Year ended December 31, December 31, 2010 2011 Revenue Petroleum and $ 11,842 $ 13,541 natural gas sales Royalties (2,099) (2,150) 9,743 11,391 Expenses Operating 4,651 4,592 General and 1,252 1,141 administrative Share-based 108 222 payments Depletion and 4,975 5,613 depreciation Impairment of property, plant and equipment - 1,276 (Gain) loss on 933 (126) sale of assets Results from (2,176) (1,327) operating activities Finance Interest and 226 350 accretion Loss before income (2,402) (1,677) tax Current income tax - (15) benefit Deferred income (599) (431) tax benefit Net loss and $ (1,803) $ (1,231) comprehensive loss Net loss per share Basic and $ (0.28) $ (0.19) diluted STATEMENT OF CHANGES IN SHAREHOLDERS'EQUITY (Stated in thousands of dollars and shares) Number Total of common Share Contributed Retained shareholders' shares capital surplus earnings equity Balance at 6,466 $ 12,402 $ 4,538 $ 2,296 $ 19,236 January 1, 2011 Share-based - - 202 - 202 payments Net loss - - - (1,803) (1,803) Balanceat 6,466 $ 12,402 $ 4,740 $ 493 $ 17,635 December 31, 2011 Balance at 6,416 $ 12,194 $ 4,313 $ 3,527 $ 20,034 January 1, 2010 Options 50 208 (96) - 112 exercised Share-based - - 321 - 321 payments Net loss - - - (1,231) (1,231) Balance at 6,466 $ 12,402 $ 4,538 $ 2,296 $ 19,236 December 31, 2010 WRANGLERWEST ENERGY CORP. STATEMENTS OF CASH FLOWS (Stated in thousands of dollars) Year ended Year ended December 31, 2011 December 31, 2010 Cash provided by (used in): Operating Net loss $ (1,803) $ (1,231) Items not involving cash: Depletion and depreciation 4,975 5,613 Impairment of property, plant and equipment - 1,276 Accretion 64 74 Share-based payments 108 222 (Gain) loss on sale of assets 933 (126) Deferred income tax benefit (599) (431) 3,678 5,397 Change in non-cash operating working capital 205 437 3,883 5,834 Financing Decrease in bank indebtedness, original credit facility - (8,731) Increase (decrease) in bank indebtedness, new credit facility (3,198) 6,355 Issuance of common shares - 113 (3,198) (2,263) Investing Property, plant and equipment expenditures (4,941) (7,357) Proceeds on sale of assets 5,066 3,635 Change in non-cash investing working capital (810) 151 (685) (3,571) Cash and cash equivalents, beginning and end of year $ - $ - Supplementary cash flow information Interest paid (173) (303) Income tax refund 74 472 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, F3 and F4 effective December 31, 2011. Alternatively, to obtain copies of published corporate information, contact Crista L. Ferguson, Chief Financial Officer, Wrangler West Energy Corp., 1950, 444 Fifth Avenue SW, Calgary, Alberta, Canada T2P 2T8 (telephone +1 403 290 6800 or e-mail info@wranglerwest.ca). Reader Advisory This news release may contain forward-looking statements ("FLS") about potential new crude oil and natural gas drilling, tie-ins, production operations, sources and use of capital, asset purchases or dispositions and expected future operations. Although Wrangler West believes the expectations reflected in these FLS are reasonable, undue reliance should not be placed on them because the Company can give no assurance the FLS will prove to be correct. Since FLS address future events and conditions, by their very nature they involve inherent risks and uncertainties. A more detailed discussion of FLS is provided in Wrangler West's Management's Discussion and Analysis for the three and twelve months ended December 31, 2011 which is filed on SEDAR (www.sedar.com). The FLS contained in this news release are made as of the date hereof and Wrangler West undertakes no obligation to update publicly or revise any FLS 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 crude oil and natural gas producer which explores for and develops crude oil and natural gas production assets in the Province of Alberta. Since inception, the Company's mandate has been to use the drill bit to add shareholder value. Disciplined management of operations and the 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". The TSX Venture Exchange has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release. Wrangler West Energy Corp. CONTACT: Wrangler West Energy Corp.Steven F. JohnsonPresident and Chief Executive Officerinfo@wranglerwest.catelephone: (403) 290-6800

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