9/1/2009

TUSCANY ENERGY LTD. ANNOUNCES RESULTS AND UPDATES OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2009

The following is for immediate release in Canada, September 1, 2009
 
TUSCANY ENERGY LTD. ANNOUNCES RESULTS AND UPDATES OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2009  

Calgary Alberta, September 1, 2009 Tuscany Energy LTD (TUS - TSX-V) is pleased to report the financial and operating results for the six months ended June 30, 2009.

Financial

Tuscany has taken two significant steps to position the Company for future growth.  To provide capital to finance the development of its oil prospects in Saskatchewan the Company had taken the following steps:

. On August 19, 2009 Tuscany announced a Rights Offering to provide up to $500,000 of additional working capital;

. Concurrently, the company announced an arrangement agreement to acquire Goldmark Minerals Ltd, through the issue of 12.2 million Tuscany shares which, if successful, will provide Tuscany with up to $1.3 million of additional working capital, and

. Tuscany has successfully negotiated its line of credit at $3.0 million.

The successful completion of these transactions will put Tuscany in sound financial condition, providing the opportunity for significant growth.

To provide the capital required to continue development of the Company's assets, and to manage our debt level, the Board of Directors has unanimously approved a Rights Offering whereby shareholders are being offered the opportunity to purchase one additional Tuscany common share for each four shares currently owned at a price of $0.06 per share.  If fully subscribed, this Rights Offering will net the Company $500,000 of new financing. The offering will close on October 1, 2009.

The Board has also unanimously approved a transaction whereby Tuscany will acquire the assets of Goldmark Minerals Ltd., consisting mainly of $1.4 million of working capital, through the issue of 12.2 million shares. The transaction will be completed through a plan of arrangement, subject to the approval of the Goldmark shareholders at a Goldmark shareholder's meeting anticipated to be held in early in October 2009.

 Operations

Production, revenue and cash flow for both the six months and the three-months ending June 30, 2009 were lower than for the same periods in 2008. The reduced production results primarily from a year over year decline in natural gas production at Wildwood and Evesham as flush production from wells declined. Oil production showed a small increase for the  six months ended June 30, 2009, however Q2 2009 oil production was lower than anticipated due to a number of factors:
. The Evesham Dina horizontal well stabilized at a lower rate than the initial flush production. The well is producing at a rate of 45 Bbls/d at the end of August, 2009. Tuscany plans to construct water injection facilities and increase the total fluid production in order to increase oil production from the well and to prepare for additional wells,
. Oil production from the Evesham Sparky pool was also lower than anticipated as a result of the Company's decision to minimize well workovers and planned recompletions during the period of low oil prices in the first quarter of 2009. A program consisting of 4 workovers and 3 recompletions commenced in Q3 2009 with a successful recompletion of an oil well adding 13 Bbls/d to Tuscany at the end of August 2009, and
. Production from the flowing oil well at Wildwood, Alberta declined and the operator is in the process of equipping the well with a bottom hole pump and pumping unit to restore production levels.

On a positive note oil prices have recovered since the end of Q1 2009, and we are particularly pleased with the relatively high prices being paid for the Company's heavy oil production. This is particularly relevant to the Company as 85% of Tuscany's revenue is generated from Oil and NGL sales.

Business Outlook

Energy prices commenced to diverge in Q2 2009, with gas prices falling and oil prices recovering.  Oil prices rebounded in the last few months and we are particularly pleased with prices received for heavy oil production. Better oil prices are somewhat offset by a virtual collapse in natural gas prices. However, Tuscany is primarily an oil producer with 85% of the Company's revenue in the first half of 2009 coming from oil and NGLs.

The Company plans to target its capital expenditures toward the development of new oil production and operating cost reduction projects to provide the maximum financial benefit for our Shareholders.

The Company has also streamlined staff and has arranged to reduce General and Administrative cost by utilizing, on a part time basis, support staff employed by a related company.

The Board of Tuscany believes growth for Tuscany shareholders lies in:

. Restored oil production from existing wells,
. Increased production from a potential Dina pool development program,
. Sustained higher oil prices,
. Improved natural gas prices,
. Lower operating and General and Administrative costs and,
. New financial strength from the announced financial transactions

These actions will allow the Company to profit from the current downturn and emerge a stronger, more viable company.

FOR FURTHER INFORMATION, PLEASE CONTACT:

John G.F. McLeod, President
TUSCANY ENERGY LTD.
Telephone:  (403) 264-2398
Fax:  (403) 261-4072
TSX-V:  TUS

Robert W. Lamond, Chairman
TUSCANY ENERGY LTD.
Telephone:  (403) 269-9889
Fax:  (403) 269-9890

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements."  Actual results could differ materially from the conclusions, forecasts or projections in the forward-looking information.  Certain material factors and assumptions were applied in drawing the conclusions or making the forecasts or projection in the forward-looking information and the material factors or assumptions that were applied in drawing the conclusion or making the forecast or projection as reflected in the forward-looking information is contained in the press release.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl).  Boe figures may be misleading, particularly if used in isolation.  A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.  References to oil in this discussion include crude oil and natural gas liquids (NGLs). 

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Summary of Financial Operating Results

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