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Invicta Energy Corp. Announces Fifth Consecutive Profitable Quarter


Invicta Energy Corp. Announces Fifth Consecutive Profitable Quarter

CALGARY, Nov. 21, 2012 /CNW/ - Invicta Energy Corp. ("Invicta" or the "Company") (TSXV: VCA) is pleased to report its financial and operating results for the three and nine months ended September 30, 2012. Invicta's interim condensed financial statements and related management's discussion and analysis for three months and nine months ended September 30, 2012 have been filed and are available on the SEDAR website at www.sedar.com and may also be obtained on Invicta's website at www.invictaenergy.ca.

HIGHLIGHTS OF THE THIRD QUARTER


    --  Increased average oil production 49% to 323 bbl/d for third
        quarter of 2012 from 217 bbl/d in second quarter.
    --  150% increase in third quarter average oil production year over
        year.
    --  Achieved funds flow from operations of $1.5 million
        ($0.02/share) and earnings of $0.5 million ($0.01/share) for
        the quarter. Year to date funds flow from operations is $3.4
        million ($0.05/share) and earnings is $0.9 million
        ($0.01/share).
    --  Achieved top quartile operating netback of $55.82/boe year to
        date.
    --  Commenced the Q3/Q4 drilling program of 11 gross (5.1 net)
        wells at Lucky Hills. Four of the gross wells were drilled and
        ready for completion at September 30, 2012.
    --  On track to achieve exit light oil production of 535 bbl/d for
        2012.
    --  Acquired over 14 sections of land on two Alberta light oil
        plays.

HIGHLIGHTS
                                                                       
                       Three months ended           Nine months ended
                           September 30,               September 30,
                         2012          2011          2012          2011
                             (unaudited)                 (unaudited)

Operations                                                             

Drilling                                                               

  Oil wells (net)    4.0(2.2)      4.0(2.2)     15.0(8.2)      9.0(5.0)
                                                               

Undeveloped land
holdings (net          51,900        35,852        51,900        35,852
acres)
                                                                       

Average daily                                                          
production

  Crude oil               323           129           255            75
  (bbls/d) 

  Natural gas             383            92           388           237
  (mcf/d)

  Total
  equivalent              387           145           320           114
  (boe/d)
                                                                       

Average product                                                        
prices

  Crude oil (Cdn  $     81.95   $     88.94   $     83.33   $     89.68
  $/bbl)

  Natural gas     $      2.14   $      3.78   $      1.96   $      3.75
  (Cdn $/mcf) 

  Total
  equivalent (Cdn $     70.57   $     81.88   $     68.83   $     66.46
  $/boe)
                                                                       

  Royalties (Cdn  $      2.40   $      4.66   $      2.29   $      6.26
  $/boe)

  Production and
  operating costs                                          
  (Cdn $/boe)     $     12.72   $     18.69   $     10.72   $     17.89

  Operating
  netback((1))
  (Cdn $/boe)     $     55.45   $     58.53   $     55.82   $     42.31
                                                                       

Financial                                                              

Petroleum and
natural gas         2,512,220   $ 1,008,530   $ 5,999,320   $ 2,084,380
revenue

Funds flow from    
operations( (1))    1,477,238   $   458,900   $ 3,423,353   $    85,395

  Per share -
  basic and              0.02   $      0.01   $      0.05   $      0.00
  diluted

Earnings (loss)       489,477   $   114,227   $   829,180   $ (729,757)

  Per share -
  basic and              0.01   $      0.00   $      0.01   $    (0.02)
  diluted

Capital             3,768,326   $ 3,334,870   $ 9,586,011   $ 7,006,951
expenditures

Net debt ( (1))     9,265,490   $ 2,404,474   $ 9,265,490   $ 2,404,474

Shares
outstanding            75,609        54,662        75,609        54,662
(000) 

Weighted average                                                       
shares 

  Outstanding          75,609        54,662        75,565        45,985
  (000)
                                                                       

((1))    The term funds flow from operations should not be considered
         an alternative to, or more meaningful than, cash flow from
         operating activities as determined in accordance with IFRS as
         an indicator of the Company's performance. Funds flow from
         operating activities is a non-IFRS measure that represents
         cash provided by operating activities before changes in
         non-cash working capital.  Per share amounts are calculated
         using weighted average shares outstanding consistent with the
         calculation of loss per share. Other industry benchmarks and
         terms such as net debt and operating netback are not
         recognized measures under IFRS. Management believes these are
         useful supplemental measures of, firstly, the total amount of
         current and long-term debt the Company has, and secondly, the
         amount of revenues received after the royalties and operating
         costs. Net debt, which terms represent current assets
         (excluding unrealized financial instruments) less current
         liabilities is used to assess efficiency, liquidity and the
         general financial strength of the Company. Readers are
         cautioned, however, that these measures should not be
         construed as an alternative to other terms such as current
         debt or net earnings in accordance with IFRS as measures of
         performance. The Company's method of calculating these
         measures may differ from other companies, and accordingly, may
         not be comparable to measures used by other companies.

OPERATIONS UPDATE

Kindersley (Lucky Hills), Saskatchewan

Early in the third quarter the Company completed and placed on production four 
wells from its Q2 program. In September four wells of the Q3/Q4 Kindersley 
(Lucky Hills) drilling program were drilled. Subsequent to September 30, 2012, 
an additional six wells were drilled, all at a 100% success rate. The 
completion and multi-stage fracing of the majority of these wells commenced 
after the quarter end due to availability of frac services. Invicta is pleased 
to report that as of the date of this press release all wells have been 
completed and placed on production. During 2012, Invicta has drilled a total 
of 21 gross (11.1 net) wells on this property.

Based on the last 10 wells of its recent drilling program, drilling costs have 
been reduced as a result of increased efficiencies. Invicta estimates that the 
all in on-stream costs of these horizontal wells are averaging $900,000 to 
$950,000. The oil production rates of the most recent program have exceeded 
the Company's forecasted average type curve.

Invicta's two facilities have been expanded in Q3 and an additional one is 
being constructed to handle the additional production volumes from the recent 
drilling program. It is anticipated that one additional well will be drilled 
at 100% working interest prior to year end on lands acquired in Q2. Plans are 
currently underway for an active Q1/Q2, 2013 program.

Since April, 2012, Invicta has transported up to 60% of its production by rail 
in order to increase netbacks and mitigate a portion of the current 
differentials in Edmonton Light to WTI. This process is expected to continue 
into 2013.

Central Alberta

A total of 14 ¼ sections of land were acquired during Q3 in areas that 
industry has recently licensed and drilled horizontal Viking oil wells. The 
Company plans to drill a test horizontal well in Q1 2013 to test the extension 
of the existing Viking oil play.

OUTLOOK

Invicta is very pleased with the growth we have achieved through Q3 and year 
to date in 2012.  The third quarter results are on target and the Company is 
on track to meet or exceed the year end exit oil production of 535 bbl/d with 
added production from the Q3/Q4 11 gross (5.1 net) well drilling program.  
The Company is forecasting the 2012 annual funds flow per share at $0.08/share 
and the annualized Q4 funds flow per share at $0.12/share. The 2012 capital 
program was increased to $16 million due to the acquisition of additional 
acreage in Alberta and an increase in the number of wells drilled in the 
fourth quarter. Based on the recent drilling program, Invicta anticipated 
being granted the maximum lending value of $18 million within its existing 
agreement by year end, or shortly thereafter.

The forecast for 2013 is based on drilling 25 gross (13 net) oil wells at 
Lucky Hills.  The capital program of $15 million includes drilling two wells 
in the first quarter on the Company's Alberta oil plays. The $15 million 
capital program is forecasted to be funded by funds flow and availability 
within the Company's credit facility. Due to recent volatility in oil prices 
and differentials, the Company has based the 2013 forecast on an $80 CDN 
realized oil price.  Invicta is forecasting average oil production of 620 
bbl/d for 2013, a 107% increase year over year, while maintaining a debt to 
annualized cash flow ratio of less than 1.5:1.  The Company looks forward to 
increasing its forecast and capital budget if market conditions improve, 
production results at Kindersley continue to exceed type curve, and/or the 
success of the initial wells in Alberta.

The following table summarizes revised 2012 guidance and the 2013 guidance.
                                                             
                                   2012           2013            
                                 Guidance     Guidance((1))

Capital Expenditures $MM            $16              $15          

Drilling Program Gross (Net)                                      
Wells                            22 (12)          27 (15)

Avg Oil Production Bbl/d            300              620          

Funds Flow $MM                      $5.7            $11.7         

- Per share                        $0.08            $0.16         

Annualized Q4 Funds Flow $MM        $9.1            $12.4         

- Per share                        $0.12            $0.16         

Year End Net Debt $MM              $13.1            $16.6         

(1)   Based on CDN $80/bbl realized oil price.  A $1 change in oil
      price has an estimated $265,000 ($0.003/share) impact on the
      forecasted funds flow for 2013

About the Company

Invicta is a Calgary based, emerging junior oil and gas company exploring and 
developing light oil opportunities in Saskatchewan and Alberta.  The 
Company's current focus is the development of its Viking resource play in 
Kindersley, Saskatchewan.


Cautionary Statements:

This press release contains certain forward-looking statements (forecasts) 
under applicable securities laws relating to future events or future 
performance. Forward-looking statements are necessarily based upon assumptions 
and judgements with respect to the future including, but not limited to, the 
outlook for commodity markets and capital markets, the performance of 
producing wells and reservoirs, well development and operating performance, 
general economic and business conditions, weather, the regulatory and legal 
environment and other risks associated with oil and gas operations. In some 
cases, forward-looking statements can be identified by terminology such as 
"may", "will", "should", "expect", "projects", "plans", "anticipates" and 
similar expressions. These statements represent management's expectations or 
beliefs concerning, among other things, future operating results and various 
components thereof affecting the economic performance of Invicta. Undue 
reliance should not be placed on these forward-looking statements which are 
based upon management's assumptions and are subject to known and unknown risks 
and uncertainties, including the business risks discussed above, which may 
cause actual performance and financial results in future periods to differ 
materially from any projections of future performance or results expressed or 
implied by such forward-looking statements. Accordingly, readers are cautioned 
that events or circumstances could cause results to differ materially from 
those predicted.

In the interest of providing Invicta shareholders and potential investors with 
information regarding the Company, including management's assessment of 
Invicta's future plans and operation, certain statements throughout this press 
release constitute forward looking statements.  All forward-looking 
statements are based on the Company's beliefs and assumptions based on 
information available at the time the assumption was made.  The use of any of 
the words "anticipate", "continue", "estimate", "expect", "may", "will", 
"project", "should", "believe" and similar expressions are intended to 
identify forward looking statements.  By its nature, such forward-looking 
information involves known and unknown risks, uncertainties and other factors 
that may cause actual results or events to differ materially from those 
anticipated in such forward looking statements.  Invicta believes the 
expectations reflected in those forward looking statements are reasonable but 
no assurance can be given that these expectations will prove to be correct and 
such forward looking statements contained throughout this press release should 
not be unduly relied upon.  These statements speak only as of the date 
specified in the statements. 

In particular, this press release may contain forward looking statements 
pertaining to the following:
    --  the performance characteristics of the Company's oil and
        natural gas properties;
    --  oil and natural gas production levels;
    --  capital expenditure programs;
    --  the quantity of the Company's oil and natural gas reserves and
        anticipated future cash flows from such reserves;
    --  projections of commodity prices and costs;
    --  supply and demand for oil and natural gas;
    --  expectations regarding the ability to raise capital and to
        continually add to reserves through acquisitions and
        development; and
    --  treatment under governmental regulatory regimes.

The material assumptions in making these forward-looking statements include 
certain assumptions disclosed in the Company's most recent management's 
discussion and analysis included in the material available on this press 
release.

The Company's actual results could differ materially from those anticipated in 
the forward looking statements contained throughout this press release as a 
result of the material risk factors set forth below, and elsewhere in this 
press release:
    --  volatility in market prices for oil and natural gas;
    --  liabilities inherent in oil and natural gas operations;
    --  uncertainties associated with estimating oil and natural gas
        reserves;
    --  competition for, among other things, capital, acquisitions of
        reserves, undeveloped lands and skilled personnel;
    --  incorrect assessments of the value of acquisitions and
        exploration and development programs;
    --  geological, technical, drilling and processing problems;
    --  fluctuations in foreign exchange or interest rates and stock
        market volatility;
    --  failure to realize the anticipated benefits of acquisitions;
    --  general business and market conditions; and
    --  changes in income tax laws or changes in tax laws and incentive
        programs relating to the oil and gas industry.

These factors should not be construed as exhaustive.  Unless required by law, 
Invicta does not undertake any obligation to publicly update or revise any 
forward looking statements, whether as a result of new information, future 
events or otherwise.

Barrels of oil equivalent (boe) may be misleading, particularly if used in 
isolation. A boe conversion ratio of six thousand cubic feet (mcf) of natural 
gas to one barrel (bbl) of oil is based on an energy conversion method 
primarily applicable at the burner tip and is not intended to represent a 
value equivalency at the wellhead. All boe conversions in this press release 
are derived by converting natural gas to oil in the ratio of six thousand 
cubic feet of natural gas to one barrel of oil. Certain financial amounts are 
presented on a per boe basis, such measurements may not be consistent with 
those used by other companies.

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

Gordon Reese President & CEO gord@invictaenergy.ca (403) 265-8890 ext 1  or  
Carrie McLauchlin Vice President, Finance & CFO carriem@invictaenergy.ca (403) 
265-8890 ext 4

SOURCE: Invicta Energy Corp.

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/November2012/21/c2161.html

CO: Invicta Energy Corp.
ST: Alberta
NI: OIL ERN 

-0- Nov/21/2012 12:00 GMT

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