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Alexander Energy Ltd. Announces 2012 Q3 Financial and Operating Results

CALGARY, ALBERTA -- (Marketwire) -- 11/28/12 -- Alexander Energy Ltd. (TSX VENTURE:ALX), ("Alexander" or the "Company") is pleased to announce its financial and operating results for the three and nine month periods ended September 30, 2012. This press release should be read in conjunction with the Company's September 30, 2012 condensed interim financial statements and MD&A filed on Sedar at www.sedar.com.


Highlights                                                                  

--  Cash flow for Q3 2012 was $1.56 million, up 161% from Q3 2011 results. 
    
--  Oil production increased to 437 bbl/day, up 134% from Q3 2011 results.
    Gas production was down 34% as the Company shifts focus from gas to oil.
    The overall net BOE increase in Q3 2012 was 107 BOE/day as compared to
    Q3 2011. Gas contributed 39% of total production in Q3 2012,
    representing 11% of revenue and an estimated 10% of cash flow. These
    economics are driving the Company's shift to oil. 
    
--  The Board of Directors has made significant reductions to director's,
    legal and audit fees. 
    
--  With the new initiative to grow production and cash flow we have added
    four new people to support the engineering, geology, and land functions.
    In spite of these additions, the budget for 2013 forecasts a significant
    reduction in overall G&A expenses. 
    
--  The successful drilling and completion of the 15-12-56-27W4 well proved
    that our Detrital oil field extends to the north, and confirmed seismic
    interpretation. Based on this success the Company is planning to drill
    two Detrital wells in Q1 2013, at 12-12 and 4- 13-56-27W4. 
    
--  The mark to market value of the Company's oil production hedge for 2013
    was $657,222 at September 30, 2012. As gas prices continue to improve
    the Company may hedge 50% of its gas production for 2013. 
    
--  Since September 30, 2012, Alexander has spent $800,000 (net) on field
    maintenance activities. This included the compressor turnaround at the
    central battery and processing facility, and workover projects on three
    wells. This resulted in production being down for approximately a week
    in October. The workover activities resulted in an increase in
    production of over 100 BOE/day. 
    
--  Cash flow for November and December, 2012 is anticipated to average
    $500,000 per month, and is expected to increase as the 15-12 well comes
    on stream. 
    
--  Alexander's total current net production is approximately 900 BOE per
    day, 55 percent of which is oil and natural gas liquids. 

Financial Summary


----------------------------------------------------------------------------
                                             Three months ended September 30
----------------------------------------------------------------------------
                                              2012           2011  % Change 
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Oil and gas revenue                   $  3,304,518   $  2,079,442        59 
Cash flow from operations (1)            1,563,100        597,981       161 
  Per share - basic and diluted (1)           0.03           0.01       152 
Net income                                 123,326        171,682       (28)
  Per share - basic and diluted               0.00           0.00         - 
Net debt (1)                            11,643,887     12,369,063        (6)
Capital expenditures                  $    511,000   $  1,363,000       (63)
Shares outstanding - end of period      62,239,477     59,963,786         4 
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                                              Nine months ended September 30
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                                              2012           2011  % Change 
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Oil and gas revenue                   $  8,683,113   $  7,451,193        17 
Cash flow from operations (1)            3,302,080      3,185,377         4 
  Per share - basic and diluted (1)           0.05           0.06        (5)
Net income (loss)                          938,367       (880,550)        - 
  Per share - basic and diluted               0.02          (0.02)        - 
Net debt (1)                            11,643,887     12,369,063        (6)
Capital expenditures                  $  2,113,000   $  7,268,000       (71)
Shares outstanding - end of period      62,239,477     57,169,721         9 
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(1) Non IFRS measure                                                        
                                                                            
                                                                            
Operating summary                                                           
                                                                            
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Three months ended September 30                 2012        2011   % Change 
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Daily production                                                            
----------------------------------------                                    
Oil and NGLs (bbl/d)                             437         187        134 
Natural gas (mcf/d)                            1,646       2,508        (34)
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Oil equivalent (boe/d @ 6:1)                     712         605         18 
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Realized commodity prices ($CDN)                                            
----------------------------------------                                    
Oil and NGLs (bbl)                         $   72.77   $   67.73          7 
Natural gas (mcf)                          $    2.48   $    3.95        (37)
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Oil equivalent (boe @ 6:1)                 $   50.46   $   37.34         35 
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Nine months ended September 30                  2012        2011   % Change 
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Daily production                                                            
----------------------------------------                                    
Oil and NGLs (bbl/d)                             363         215         69 
Natural gas (mcf/d)                            2,082       2,707        (23)
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Oil equivalent (boe/d @ 6:1)                     710         666          7 
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Realized commodity prices ($CDN)                                            
----------------------------------------                                    
Oil and NGLs (bbl)                         $   74.20   $   78.18         (5)
Natural gas (mcf)                          $    2.33   $    3.87        (40)
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Oil equivalent (boe @ 6:1)                 $   44.79   $   40.96          9 
----------------------------------------------------------------------------
                                                                            
                                                                            
Operating and cash flow netbacks                                            
                                                                            
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Three months ended September 30                2012        2011    % Change 
                                           ($ / boe)   ($ / boe)            
----------------------------------------------------------------------------
Operating netback ($/boe)                                                   
----------------------------------------                                    
Revenue                                       50.46       37.34          35 
Royalties                                     (6.27)      (4.98)         26 
Operating expenses                           (11.87)     (13.10)         (9)
----------------------------------------------------------------------------
Operating netback per boe                     32.32       19.26          68 
Realized gain (loss) on financial                                           
 derivative instruments                        0.64       (1.57)          - 
General and administrative expenses           (7.08)      (4.96)         43 
Interest expense                              (2.00)      (1.99)          1 
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Cash flow from operations per boe             23.87       10.74         122 
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----------------------------------------------------------------------------
Nine months ended September 30                 2012        2011    % Change 
                                           ($ / boe)   ($ / boe)            
----------------------------------------------------------------------------
Operating netback ($/boe)                                                   
----------------------------------------                                    
Revenue                                       44.79       40.96           9 
Royalties                                     (5.33)      (6.38)        (16)
Operating expenses                           (12.50)     (13.23)         (6)
----------------------------------------------------------------------------
Operating netback per boe                     26.95       21.35          26 
Realized gain (loss) on financial                                           
 derivative instruments                       (0.39)       2.16           - 
General and administrative expenses           (7.35)      (4.31)         71 
Interest expense                              (2.18)      (1.69)         29 
----------------------------------------------------------------------------
Cash flow from operations per boe             17.03       17.51          (3)
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Forward-Looking Statements: All statements, other than statements of historical fact, set forth in this news release, including without limitation, assumptions and statements regarding reservoirs, resources and reserves, future production rates, exploration and development results, financial results, and future plans, operations and objectives of the Corporation are forward-looking statements that involve substantial known and unknown risks and uncertainties. Some of these risks and uncertainties are beyond management's control, including but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, environmental risks, industry competition, availability of qualified personnel and management, availability of materials, equipment and third party services, stock market volatility, timely and cost effective access to sufficient capital from internal and external sources. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by the Corporation at the time of preparation, may prove to be incorrect. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Reference is made to barrels of oil equivalent (BOE). Barrels of oil equivalent may be misleading, particularly if used in isolation. In accordance with National Instrument 51-101, a BOE conversion ratio for natural gas of 6 Mcf: 1 bbl has been used, which is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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