Grand Banks Energy Corporation (the "Company" or "Grand Banks") (TSX
VENTURE:GBE) is pleased to announce its financial and operating results for the
three and six month periods ended June 30, 2007. The detailed financial
statements and management discussion and analysis for the periods are accessible
on the internet at the website www.sedar.com.


The first half of 2007 represented a building period in which Grand Banks
undertook a number of measures that has positioned the Company for sustained
value-added growth going forward.




                      Three Months Ended June 30,  Six Months Ended June 30,
                                               %                          %
                         2007     2006    Change    2007      2006   Change
                        ------   ------  --------  ------    ------ --------
Average Sales Volumes:
----------------------
Crude oil & liquids
 - bbls/day               554      527         5     585       585        -
Natural gas - mcf/day   1,026    1,561       (34)  1,041     1,702      (39)
Sales volumes
 - boe/day (6:1)          725      787        (8)    758       868      (13)

Financial Results
 (CDN $000's)
---------------------

Gross revenues        $ 4,152  $ 4,088         2 $ 8,276   $ 8,720       (5)
Net income (loss)     $   328  $  (439)      175 $     8   $  (864)     101
Funds flow from
 operations(1)        $ 2,086  $ 2,209        (6)$ 3,971   $ 5,012      (21)
Capital expenditures  $ 8,499  $ 5,436        56 $11,438   $12,745      (10)
Working capital
 (deficiency)                                    $(8,721)  $(6,011)     (45)
Flow-through
 obligations
 (to year end)                                   $ 1,475   $ 1,800      (18)
Total assets                                     $53,479   $42,371       26

(1) Funds flow from operations is a non-GAAP measure that represents net
    income plus depletion, depreciation and accretion, stock-based
    compensation, future taxes and other non-cash expenses.



Operations: Grand Banks has devoted significant resources to the planning and
implementing of the tie-ins and facilities needed to bring our Tower Creek
2-21-55-27 W5M Leduc gas discovery well on production. After the construction of
a $14 million dehydration plant, and the completion of an 11 mile pipeline by a
midstream company, the well was brought on production during the last week of
June. Production levels for July and early August varied while commissioning
operations at the new dehydration facilities and the scheduled summer
maintenance program at the third party sour processing facilities were
completed. The well is now producing steadily at gross raw rates in excess of 21
mmcf/d. Grand Banks 20.17% share of the well's production, after shrinkage, is
currently about 500 boe/d (sales).


The second well at Tower Creek, a 4,500 meter Wabamun test located at
11-26-55-27-W5M, commenced drilling on June 16, 2007 and is currently in
progress. Grand Banks expects the well to be finished drilling around November,
2007. Grand Banks is paying 22.13% of the costs of the well to earn a 19.47%
working interest.


Since June, Grand Banks has drilled five horizontal development oil wells on its
Sinclair Three Forks / Torquay light oil play along the Saskatchewan / Manitoba
border. Completion operations on the first four wells are completed and the
average initial well productivity has been about 75 bbls/d of oil per well. The
fifth well is completed and will be on production within the week.


Field operations are completed on the first of two 3D seismic programs covering
22 square miles of Grand Banks' acreage in the area. The interpretation of this
data will help to delineate additional locations on Grand Banks' 20,000 net acre
land base on this play. We expect to drill at least four more horizontal wells
this year. Total Company production, with all wells drilled to date completed
and on production, is expected to be over 1,300 boe/d.


Finance and Budget:

Grand Banks had net debt (including working capital deficiency) of $8.7 million
at the end of the second quarter. The Company currently has a $19.0 million line
of credit with an Alberta financial institution. This credit facility, along
with cash flow, is expected to fund a capital program of approximately $16.0
million during the second half of 2007.


Personnel:

Mr. George Hassler, Vice President, Exploration has decided to accept an offer
from a large oil and gas company and will be leaving Grand Banks on August 31,
2007. George worked with Grand Banks since March, 2004 and was a key contributor
to our 1,200% drill-bit growth in oil and gas production, taking the Company
from about 100 boe/d to current levels. The land and plays that have been
acquired during George's tenure have put Grand Banks in an excellent position
for additional growth going forward, as these properties are further developed
over the next few years.


Mr. Keith Wilford, Vice President, Operations, has also decided to leave Grand
Banks at the end of August to pursue other opportunities. Keith joined Grand
Banks in November 2004. Keith has also been a key element of our growth to date,
including the co-ordination of the drilling and completion of wells, the
construction of facilities and the operation of over 30 oil and gas wells. His
contribution to the successful Tower Creek project, including the drilling and
completion of the 2-21 well, negotiation of the processing arrangements and
construction of the associated production facilities, has been particularly
noteworthy.


Grand Banks, on behalf of all its stakeholders, is extremely grateful to both of
these individuals and wishes them the best of success in their future endeavors.


We are pleased to announce that Mr. Tim Veenstra has agreed to join Grand Banks
in the position of Vice President, Engineering, effective September 1, 2007. Tim
is a Professional Engineer with over 25 years experience in oil and gas
development, operations, exploration, exploitation, and business development.
Tim worked with Stellarton Energy Corporation during the period from 1997 to
2001 when its production level grew from 700 to 4,500 boe/d, and has experience
with both major companies and smaller private companies during his career. Grand
Banks has also hired Mr. Chris Edwards in the position of Exploitation Engineer.
Chris is an E.I.T. who graduated with a B.Sc. in Petroleum Engineering from the
University of Alberta in 2004 and has worked in the energy industry in a variety
of roles since 1997. Chris has a wide variety of experience in both field and
office environments and worked with Harvest Energy Trust from 2003 to mid 2007,
as an exploitation and production engineer.


To provide geological expertise and continuity as it develops its existing
properties, and to identify new opportunities, Grand Banks has hired Mr. Steve
Dryer, MSc, PGeol. Steve has over 25 years of diverse experience in the Western
Canadian sedimentary basin as a working oil and gas geologist, his most recent
experience being at a private junior oil and gas company, Trifecta Resources,
Inc. Steve will be working for Grand Banks on a contract basis and will work
with Grand Bank's contract geophysicist.


Grand Banks is currently in the process of reviewing potential candidates to
assume the role of Vice President, Exploration. Given Grand Banks extremely
favorable outlook and current industry conditions, we are confident that we can
attract a highly qualified, proven oil and gas finder to round out our executive
team.


Outlook:

Grand Banks production in the third quarter is expected to average over 1,200
boe/d, a record for the Company. Almost all of this production has resulted from
drilling as opposed to acquisition. Our production is currently balanced about
55% light oil and 45% natural gas. The high netbacks from our light oil
production resulted in top quartile Q2 operating netbacks of $44.00 per boe. Our
2-21 Tower Creek Leduc gas discovery is producing steadily at a current gross
raw rate of over 21 mmcf/d, making it one of the most prolific gas wells drilled
in Western Canada in 2006. Grand Banks has developed a very high quality,
operated production base that will generate strong cash flow to help fund future
growth. As the result of our production increases, and based upon our capital
and operating forecast, we expect our Q2, 2007 cash flow of $0.06 per share
(basic) to increase to $0.09 per share in Q3 and $0.12 per share in the last
quarter of the year. The Company is well on track to meet or exceed its
previously announced 2007 exit production target of 1,400 boe/d.


The Company's goal is to grow production to the 4,000 to 5,000 boe/d level while
prudently balancing debt and equity to optimize growth in value per share. With
the Tower Creek 2-21 discovery well now on stream and the Company's ongoing
light oil development program underway, Grand Banks has now established a solid
production base from which to grow. With our strong balance sheet, increasing
cash flow, inventory of drilling locations and team of dedicated professionals
we will continue with our strategy of disciplined capital allocation in pursuit
of our overall goal of growth in value per share.


Grand Banks is listed on the TSX-Venture Exchange under the Symbol GBE.

FORWARD LOOKING STATEMENTS

This press release contains forward-looking statements including expectations of
future production. These statements are based on current expectations that
involve a number of risks and uncertainties, which could cause actual results to
differ from those anticipated.


BOEs may be misleading, particularly if used in isolation. A BOE conversion
ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent a value
equivalency at the wellhead.


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