Lochaird Energy Inc. Quarter ended June 30, 2008 Financial Results

Calgary, Alberta CANADA, September 05, 2008 /FSC/ - Lochaird Energy Inc. (LEN - TSX Venture),


During the first quarter of 2008 significant programs were carried out by third party operators of two properties leading to additional production commencing in March and April of 2008.  

Total revenue has set new record highs based upon higher commodity prices and higher oil production.


Summary of Quarterly Financial and Operational Results

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                               ------------------------------------------------
                                   Three         Three        Six         Six
                                   months        months      months      months
                                   ended         ended       ended       ended
                                  June 30,      June 30,    June 30,    June 30,
                                    2008          2007        2008        2007
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Total sales -- products $         316,412        234,947    505,807      368,678
Royalties $                        25,256         24,891     51,046       41,560
Operating expenses $               64,988         77,589    138,818      107,456
Cash flow $                       226,168        132,467    315,943      219,662
$ Per share -- basic and diluted    0.022          0.019      0.031        0.032
Average daily sales -- boe             36             43         32           35
Operating netback $/ boe            68.31          34.29      53.91        34.73
Net income (loss) $                14,053        (69,247)   (48,836)   (109,970)
Net loss per share basic
and diluted $                      (0.056)       (0.059)     (0.056)     (0.059)
Weighted average number of                                                      
    shares outstanding         10,089,911      6,861,189  10,089,911   6,861,189
Comprehensive gain (loss) $        14,053       (69,247)    (48,836)   (109,970)
$ Per share -- basic              (0.056)        (0.059)     (0.056)     (0.059)
Oil revenue $                     238,288        181,708     382,277     273,963
Oil -- $ per barrel                109.46          61.73       99.53       61.73
Natural gas revenue $              51,904         37,488      80,328      66,412
Natural gas -- $ per mcf            11.41           7.87        9.55        7.87
Natural gas liquids revenue $      26,220         15,751      43,203      28,303
Natural gas liquids - $ per barrel  69.73          74.65       69.89       58.96
Total gross revenue $             316,412        234,947     505,807     368,678
Total gross revenue $ per boe       95.57          60.81       86.31       58.29
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Historical Quarterly Results                        
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                             Q3 2007   Q4 2007   Q1 2008   Q2 2008
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Total revenue               209,398   180,118   189,395   316,412
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Cash flow / netback         111,234    95,133    89,775   226,170
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Average sales -- boepd           39        32        28        36
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Operating netback -- boe      30.93     32.70     35.21     68.31
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                             Q3 2006   Q4 2006   Q1 2007   Q2 2007
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Total revenue               147,441   115,268   133,731   234,948
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Cash flow / netback          74,342    63,125    87,198   132,467
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Average sales -- boepd           30        27        27        42
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Operating netback -- boe      26.62     25.75     35.43     34.30
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RISKS AND UNCERTAINTIES

Exploration and Development Activities

The Company is exposed to numerous risks and uncertainties associated with the exploration and development activities. There is no assurance that expenditures made on exploration and development activities will result in discoveries of oil and natural gas in commercial quantities. In addition, delays in obtaining government approvals, shortage of skilled laborers and premature decline of reservoirs will have an adverse effect on future results of operations, liquidity and financial condition of the Company.

Credit Risk

Lochaird is subject to normal industry credit risk on its accounts receivable with customers and joint venture partners.  The Company mitigates these risks by maintaining credit management policies.

In July, 2008 SemCanada Energy Company was unable to pay Lochaird revenue of $60,000 (60% of that month's total revenue) and it is undetermined at this time when or if the funds may be recovered.  Approximately 40% of July's revenue will also be impacted by SemCanada entering into receivership.  

The TSX Venture Exchange neither approved nor disapproved the contents of this press release.

For further information please contact:

Grant S. Blakely
President and Chief Executive Officer
Lochaird Energy Inc.
Phone (403) 650-2255
Fax (403) 514-0956
Email: blakelyg@telusplanet.net

ADVISORY:

Certain information regarding the Corporation including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with oil and gas exploration, production, marketing and transportation such as loss of market, volatility of prices, currency fluctuations, imprecision of reserve estimates, environment risks, competition from other producers and ability to assess sufficient capital from internal and external sources.  As a consequence, actual results may differ materially from those anticipated in the forward-looking statements.




Source:  Lochaird Energy Inc. (LEI.P - TSX-V)
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