Alberta Clipper Reports 4 Well Success in 2nd Half 2007

Alberta Clipper has recently tested 3 new significant wells in the Sylvan Lake area of Alberta with a 4th well currently being completed.

The 15-02-39-4W5 discovery well ("15-2") tested at a restricted rate of 2.3 MMcf/d at a flowing tubing pressure of 7,500 kPa from approximately 15 feet of net pay in the Ostracod Formation. Alberta Clipper operates the well and holds a 71% working interest. The Company is currently finalizing tie-in routes and expects the well to be on production at initial rates of up to 3.5 MMcf/d (400 boe/d net) by the end of the year.

The 10-22-38-4W5 discovery well ("10-22") tested at a final rate of 400 boe/d from 12 feet of net oil pay in the Leduc Formation. Alberta Clipper operates the well and holds a 50% working interest. The Company is currently in the process of obtaining all regulatory approvals required to tie the well into Alberta Clipper-owned infrastructure. Tie-in is expected to be completed before the end of the year. The well will be subject to a Maximum Rate Limitation ("MRL") as determined by the Alberta Energy and Utilities Board upon commencement of production.

The 12-04-38-4W5 Leduc development well ("12-04") tested at a restricted rate of 380 boe/d from a 13 foot barefoot section within a pool that exhibits over 158 feet of Leduc oil pay. The barefoot technique was employed for the first time in this pool in an attempt to maximize oil recovery in this large oil-in-place reservoir that is currently exhibiting less than a 10% recovery factor. Alberta Clipper is operator and holds a 50% working interest in the well. The well is expected to be on production by the end of the year and is not subject to MRL limitations.

In addition to the aforementioned tests, Alberta Clipper is currently completing a new Ellerslie oil discovery located at 12-30-38-3W5. ("12-30"). Again, with successful test results it is expected that this well will be on production by the end of the year. Alberta Clipper holds a 100% working interest in the 12-30 well.

Alberta Clipper is currently assessing the impacts of the Alberta Department of Energy royalty changes and estimates a decrease in 2009 cash flow of approximately 14% at US$86 oil, AECO C$6.50 gas and current productivity rates. It should be noted that actual effect of the proposed royalty changes on Alberta Clipper will be dependent on the specifics of the royalty changes enacted, pricing parameters, average well productivity and product mix of the Company in 2009.

In assessing the overall effects of the proposed royalty scheme, Alberta Clipper agrees with other Alberta-based exploration companies on what appears to be inequitable treatment for those engaged in high-risk oil exploration. Alberta Clipper intends to continue to provide information to the Government of Alberta regarding the effects on future risked drilling economics in an attempt to deal with what appears to be the unintended consequences of the oil royalty changes.

Although a portion of Alberta Clipper's growth will continue to come from its Sylvan Lake Leduc exploration program, the proposed royalty scheme does not provide the same risk-reward return across the entire portfolio of single-zone Leduc exploration targets. The Company, however, has a large number of shallow prospects, which have been seismically identified on third-party lands held by deeper production in the Sylvan Lake area. With the recently announced proposal for shallow-rights-reversion, many of the identified shallow opportunities within this area will revert back to the crown for inclusion in future Crown land sales. The Sylvan Lake exploration program will over time move from being largely a single-zone play to a stacked multi-zone play with over 10 potential horizons. Alberta Clipper's extensive 3D seismic data set and infrastructure base will continue to provide the Company with an exploration advantage in targeting these new opportunities.

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