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Highpine Oil & Gas Limited Comments on Alberta New Deep Resources Programs

Posted on: Friday, 11 April 2008, 12:00 CDT

CALGARY, April 11 /PRNewswire-FirstCall/ -- Highpine Oil & Gas Limited (TSX: HPX) ("Highpine") comments on Alberta New Deep Resources Programs.

We are pleased the Government of Alberta has acknowledged the glaring need to address the unintended consequences of the New Royalty Framework (NRF) for deep sour oil and deep gas exploration in this province. However, the royalty holidays and credit programs fail to address all issues inherent in the fundamentally flawed NRF curves. As a 100% Alberta based company, Highpine remains committed to continue to work with the government of Alberta - both individually and through industry associations - to rectify the confiscatory aspect of the NRF on companies with high rate wells.

Highpine does not plan to reduce its 2008 drilling program as a result of this announcement. Planning and investment decisions were based on the assumption of full implementation of the NRF proposed October 2007. Some details of the new deep resource programs require clarification.

The Deep Oil Exploration Program (DOEP) announced April 10, 2008, will apply to all future exploratory oil wells on the Pembina Nisku Fairway. The DOEP increases Highpine's rate-of-return by approximately 20% on successful exploratory oil wells. Many of our future gas wells will also attract a royalty credit under the Natural Gas Deep drilling Program, further improving their economics.

Highpine is a Calgary-based oil and natural gas company engaged in exploration for and the acquisition, development and production of natural gas and crude oil in western Canada. Highpine's current exploration and development efforts are focused in the West Pembina Nisku and West Central Alberta Gas Fairway, both located in Central Alberta. The company's class A common shares trade on the Toronto Stock Exchange under the symbol "HPX".

Reader Advisory

Certain information regarding Highpine in this news release including management's assessment of future plans, capital expenditures and operations and the effect on Highpine and its funds flow from changes to royalty rates in Alberta may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, risks associated with sour hydrocarbons, changes to the proposed royalty regime prior to implementation and thereafter, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, delays in projects and/or operations resulting from surface conditions, wells not performing as expected, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the forgoing list of factors is not exhaustive. Additional information on these and other factors that could effect Highpine's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (http://www.sedar.com/) and at Highpine's website (http://www.highpineog.com/). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Highpine does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Highpine Oil & Gas Limited

CONTACT: Jonathan A. Lexier, President and Chief Executive Officer, Tel:(403) 508-9550, jlexier@highpineog.com; Chuck Buckley, SrVP Exploration, Tel:(403) 508-9535, cbuckley@highpineog.com, Fax: (403) 508-9503, Website:http://www.highpineog.com/

Source: PRNewswire-FirstCall

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