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Tuscany Energy Ltd. Announces Financial and Operating Results for the Three and Six Months Ended June 30, 2008

Posted on: Wednesday, 27 August 2008, 09:01 CDT

CALGARY, Aug. 27 /PRNewswire-FirstCall/ -- Tuscany is pleased to report on its operations and financial results for the three and six months ended June 30, 2008.

Production from the new well in the Wildwood area, increased production from the Saskatchewan properties and increased prices for both oil and natural gas combined to result in increased cash flow and earnings, as well as reduced debt levels. Reduced general and administrative expenses, stronger production, a management change and an exploration and development program planned for the fall should provide excellent results for the remainder of the year and into 2009.

Summary of Financial and Operating Results Six Months ended June 30, 2008 2007 ------------------------------------------------------------------------- Financial Total revenue $ 2,170,017 $ 958,931 Cash flow from operations 905,182 (62,119) per share, diluted 0.03 (0.00) Earnings (loss) for the period 177,864 (377,372) per share, diluted 0.01 (0.01) Capital additions 244,448 459,219 Net debt 2,444,508 3,125,242 Total assets $ 8,939,621 $ 9,140,995 Total shares outstanding 36,550,836 26,550,836 Operations Production Natural gas (Mcfd) 419 232 Heavy oil and NGLs (Bopd) 107 97 BOEd (6 Mcf equals 1 Bbl) 176 135 Product Prices Natural gas ($/Mcf) 9.31 6.92 Heavy oil and NGLs ($/Bbl) 90.15 44.83 Financial

Revenue for the first half of 2008 totaled $2,170,000 compared with $959,000 in 2007. The Company reported cash flow from operations of $905,000 compared with a cash flow deficiency of $62,000 for the comparative period in 2007. Tuscany's net earnings also increased to $178,000 versus a net loss of $377,000 for the same period in 2007.

The Company's net debt totaled $2.4 million as at June 30, 2008 compared with $3.3 million as at June 30, 2007.

Exploration and Development

Tuscany's new well at Wildwood (30% working interest) commenced production in January 2008 and the well continues to produce at excellent rates. Tuscany has acquired additional land in the area to expand the play and purchased 2-D trade seismic data in addition to the acquisition of proprietary 2-D seismic. Additional exploration and development prospects in the area are being investigated, some of which could be drilled later this year.

In the Evesham and Macklin areas of Saskatchewan, remedial work on the producing heavy oil well in the second quarter of 2008 has resulted in increased production. Further optimization of surface facilities and some additional down-hole work is planned for the fall to maximize production and reduce both operating and long-term capital costs.

In the same area, the Company is investigating the possibility of drilling a horizontal well into a new formation which is producing from nearby fields and has been mapped over our 100% working interest acreage.

Business Outlook

Although energy commodity prices have declined somewhat in the past weeks, management remains optimistic that the relatively higher prices and solid production base, coupled with careful cash management, will provide the Company the opportunity to continue to improve its financial position. Growth will come from optimization of existing reserves and exploration and development of new opportunities.

Additional information concerning Tuscany's financial statements and associated Management's Discussion and Analysis for the period ended June 30, 2008 can be found on the SEDAR website at http://www.sedar.com/.

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.

THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT

RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Tuscany Energy Ltd.

CONTACT: John G. F. McLeod, President, TUSCANY ENERGY LTD., Telephone:(403) 264-2398, Fax: (403) 264-2399, TSX Venture: TUS; Robert W. Lamond,Chairman, TUSCANY ENERGY LTD., Telephone: (403) 269-9889, Fax: (403) 264-2399,TSX Venture: TUS

Source: PRNewswire-FirstCall

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