Wrangler West Reports 2011 Operating and Financial Results

CALGARY, April 18, 2012 /CNW/ - Wrangler West Energy Corp. ("Wrangler West" or the "Company") (TSX-V "WX") announces today's filing on SEDAR of the Company's audited Financial Statements and related Management's Discussion and Analysis ("MD&A") for the year ended December 31, 2011 with comparative data for the year ended December 31, 2010.Effective January 1, 2011, Wrangler West began preparing 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 the year ended December 31, 2011.  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 Highlights

• $11.8 million of revenue
• $3.7 million of funds flow from operations
• $4.9 million in capital expenditures
• renewed credit facility

Review of 2011

For the year ended December 31, 2011, Wrangler West produced 899 barrels of oil equivalent ("boe") per day, a decrease of four percent compared to the same period one year ago. Wrangler West's production base is approximately 80 percent natural gas.  During a period of strong oil prices in 2011, Wrangler West maximized the value of Grand Forks crude oil properties through the sale of this asset for $4.9 million.

In 2011, the Company's netback was lower by 22 percent as the price Wrangler West received for natural gas declined 13 percent from the same period in 2010.  For the year ended December 31, 2011, crude oil prices were 22 percent higher, compared to the same period one year ago.  Total operating expenses for 2011 increased a modest one percent compared to the same period in 2010.

In 2011, Wrangler West conducted exploration activities using available cash flow and the credit facility.  The Company drilled and cased two natural gas wells and one oil well during 2011. At year-end, two wells were on production and one well was deemed not economic to tie-in at prevailing natural gas prices.  During 2011 fourth quarter, Wrangler West renewed its credit facility and 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.

Throughout 2011, the Company undertook seismic programs that provided geophysical data to increase our land position for oil prospects.  Wrangler West pursued a defensive strategy focused on conventional oil exploration, rather than horizontal resource exploration which features high costs and well-funded, aggressive competition for resource play assets.  Conventional oil drilling is compatible with Wrangler West's capital and financial structure.

Wrangler West's corporate crude oil and natural gas reserves were evaluated by Sproule Associates Limited ("Sproule") with an effective date of December 31, 2011.  Reserves totaled 1.3 MMboe in the proved category and 2.0 MMboe in the proved plus probable category resulting in a net present value of $32 million discounted at ten percent and based on Sproule's December 31, 2011 commodity price forecast.

Business Environment

Natural gas exploration, especially "dry" gas, remains economically challenging due to the oversupply condition the industry continues to face.  Elevated drilling activity for liquids-rich natural gas also produces associated natural gas which is then added to already high storage volumes.  The unseasonably warm North American winter resulted in lower-than-historical rates of drawdown from natural gas storage.  The slow economic recovery also contributed to natural gas prices tumbling to their lowest value in the past ten years.

It has been said, "When those who know it best like it the least, a great opportunity is created for the contrarian". The natural gas industry will undergo another challenging year throughout 2012 as the bottom of the price cycle continues to be redefined.  A natural gas price of $1.75 per mcf barely covers operating expenses, royalties and overhead, let alone provides any return on invested capital.  Shut-in natural gas will be a prominent feature of any recovery scenario.

Drilling activity for oil and liquids-rich natural gas remains robust.  Consumers appear to have adapted to a higher oil price, in the range of $100 per barrel, as the North American economy slowly improves.  However, the supply/demand imbalance for oil and natural gas in the global economy represents a significant arbitrage opportunity for export of these commodities currently trapped in North America.  The foregone revenue stream will attract both government support and sophisticated capital.  Long-term energy policy entered political arenas on both sides of the Canadian border with the Keystone pipeline being interrupted by the United States' federal election and potential environmental issues requiring a managed solution.  With the lack of export opportunities, Northern Gateway appears to be the Canadian alternative of choice although the project is likely at least a half a decade away from providing a viable horizon to potential new markets.

Positioning Wrangler West

In the long-term, anticipated market structure changes will provide access to new and growing demand for oil and natural gas which will be positive for the industry.  However, in the near term, small conventional oil and natural gas producers will continue to struggle with the constraints of the current business environment.  Rewards will only be realized through successful exploration by companies that can survive by prudently managing through the current down cycle.

In 2011, Wrangler West replaced oil and natural gas reserves even as the backdraft from the "shale gale" continued to erode the value of natural gas assets.  To manage through this storm, Wrangler West disposed of crude oil assets which enhanced the balance sheet (under IFRS, the "Statement of Financial Position") and positioned the Company to capitalize on any upturn.

Throughout 2012, in anticipation of continued weakness in natural gas prices, Wrangler West expects to deploy available capital to conventional oil exploration prospects that meet our risk versus reward criteria.  At the same time, we will continually assess opportunities for mergers and acquisitions to determine their potential to provide shareholder value.

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, F3 and F4 effective December 31, 2011.  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).

Reader Advisory

This news release may contain 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 twelve months ended December 31, 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".

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