Wrangler West Reports 2011 Nine Months Operating and Financial Results

CALGARY, Nov. 17, 2011 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX") announces today's filing on SEDAR (www.sedar.com) of the Company's unaudited Financial Statements and related Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2011 with comparative data for the three and nine months ended September 30, 2010 and the year ended December 31, 2010. Effective January 1, 2011, Wrangler West has prepared interim financial statements and comparative information according to International Financial Reporting Standards. Previously, the Company prepared financial statements according to Canadian generally accepted accounting principles. All documents may be viewed at www.sedar.com.

Wrangler West converts petroleum and natural gas reserves and volumes to a common unit of measure on a basis of six thousand cubic feet ("mcf") of natural gas equals one barrel ("bbl") of oil.  Disclosure using barrels of oil equivalent ("boe") may be misleading, particularly if used in isolation. The basis for the boe conversion ratio of 6 mcf equals one bbl is an energy equivalency conversion method, primarily applicable at the burner tip.  This conversion rate does not represent a value equivalency at the wellhead. The Company calculates boe per day based on total production for the period divided by the number of days during the period.

Wrangler West Energy Corp. ("Wrangler West" or the "Company") presents operating and financial results for 2011 third quarter and first nine months.  Wrangler West is a Canadian junior oil and natural gas exploration company focused on generating shareholder value by exploring for, developing and producing natural gas and crude oil from properties located in the Province of Alberta.

2011 Nine Month Highlights

• $9.6 million of revenue
• $3.2 million of funds flow from operations
• $3.2 million in capital expenditures

Review of 2011 Nine Months
For the nine months ended September 30, 2011, Wrangler West produced 936 barrels of oil equivalent ("boe") per day, an increase of two percent compared to the same period one year ago.  To date in 2011, field netbacks were lower by 13 percent as the price Wrangler West received for natural gas declined 15 percent compared to the same period in 2010.  For the nine months ended September 30, 2011, crude oil prices were 22 percent higher, compared to the same period one year ago.  Operating costs for the three months ended September 30, 2011, were $11.02 per boe, reflecting the sale of the Grand Forks oil pool at the end of the second quarter.

Capital Expenditures
During the nine months ended September 30, 2011, Wrangler West's total capital expenditures were $3.2 million with the focus of our exploration activities being oil-prone prospects.  We have been active at crown land sales and continue to expand Wrangler West's land inventory.  In 2011, the Company has drilled two oil wells and one natural gas well.

Credit Facility
Subsequent to the 2011 third quarter, Wrangler West amended its credit facility arrangement and now has in place a credit agreement totaling $13.4 million, of which $8.4 million is a revolving operating demand loan and $5.0 million is a non-revolving demand loan dedicated to acquisitions and development.  At September 30, 2011, Wrangler West had drawn $1.7 million on the credit facility.

Changing Business Environment
Over the last several years, there has been a change in the business environment for conventional junior oil and natural gas producers.  The shift from conventional exploration to resource play development is consuming most of the capital available to this sector because exploration in tight reservoirs requires massive investment.  Junior conventional exploration companies do not have the critical mass to participate in these capital-intensive resource plays.  From the historical peak of approximately 20,000 wells drilled annually, the current forecast is for approximately 12,500 wells in 2012.  Almost 70 percent of the forecasted well count will involve horizontal drilling which will likely result in a record number of meters drilled.  Most resource-play wells require complex completion programs to achieve production.  The rates of return on this invested capital are evolving but, generally, require the support of higher commodity prices.

We are seeing a significant supply of conventional oil and natural gas assets coming to market. Junior producers interested in pursuing these opportunities will require access to capital to transact.  As natural gas prices improve, conventional exploration has lucrative potential but it remains critical to manage through the current and prolonged uncertain business environment.

Outlook
During 2011, Wrangler West's natural gas price has averaged $3.92 per mcf and, in the 2011 third quarter, experienced a modest decrease from the price received during the 2011 second quarter.  These weak prices persist even as the winter heating season begins and in spite of the early colder weather cycling through North America's eastern seaboard.  Supply continues to overrun current demand.  The opinion of industry pundits and price forecasters remains bearish for this continent's natural gas production.  For the near term, production of natural gas without a significant liquids component, or "dry" gas, remains a difficult business in terms of attracting capital and garnering investment.  Like most junior oil and natural gas explorers, Wrangler West believes in the ultimate value of natural gas.

To manage responsibly through this pervasively weak natural gas market, Wrangler West has limited exploration efforts for natural gas with the objective of replacing the natural gas reserves we produce and focusing new exploration activities toward crude oil.  We have been active at land sales and continue to build a range of opportunities.  The oil side of conventional exploration remains extremely competitive as the entire industry is focused on adding oil production.

In the 2011 third quarter, we cased three newly-drilled wells.  We are currently tying-in a natural gas well which we expect to commence production during December 2011.  Testing and completing of the remaining two wells continues.  We plan to underspend the approved 2011 capital budget of $8.0 million and expect to allocate future capital to following up any successful exploration efforts heading into 2012.

Reader Advisory

This news release contains forward-looking statements ("FLS") about potential new crude oil and natural gas drilling, tie-ins, production operations, sources and use of capital, asset purchases or dispositions and expected future operations. Although Wrangler West believes the expectations reflected in these FLS are reasonable, undue reliance should not be placed on them because the Company can give no assurance the FLS will prove to be correct. Since FLS address future events and conditions, by their very nature they involve inherent risks and uncertainties. A more detailed discussion of FLS is provided in Wrangler West's Management's Discussion and Analysis for the three and nine months ended September 30, 2011 which is filed on SEDAR (www.sedar.com).  The FLS contained in this news release are made as of the date hereof and Wrangler West undertakes no obligation to update publicly or revise any FLS or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Corporate Profile
Wrangler West is a Canadian junior crude oil and natural gas producer which explores for and develops crude oil and natural gas production assets in the Province of Alberta. Since inception, the Company's mandate has been to use the drill bit to add shareholder value. Disciplined management of operations and the production portfolio creates sufficient funds flow to support ongoing operations. Wrangler West intends to continue to reinvest funds flow from operations and other available capital to protect current and add future value.  Wrangler West trades on the TSX Venture Exchange under the symbol "WX".

Additional Information
Wrangler West files additional shareholder and public information on SEDAR accessible at www.sedar.com. This includes the Statement of Reserves Data and Other Oil and Gas Information Form NI 51-101 F1, F2 and F3 effective December 31, 2010.  Alternatively, to obtain copies of published corporate information, contact Crista L. Ferguson, Chief Financial Officer, Wrangler West Energy Corp., 1950, 444 Fifth Avenue SW, Calgary, Alberta, Canada  T2P 2T8 (telephone +1 403 290 6800 or e-mail info@wranglerwest.ca).

The TSX Venture Exchange has not reviewed, and does not accept responsibility for, the adequacy or accuracy of this news release.