CALGARY, ALBERTA--(Marketwire - Nov. 22, 2011) - Traverse Energy Ltd. ("Traverse" or "the Company") (TSX VENTURE:TVL) presents financial and operating results for the nine months ended September 30, 2011. Unless otherwise stated, the volume conversion of natural gas to barrel of oil equivalent (BOE) is presented on the basis of 6 thousand cubic feet of natural gas being equal to 1 barrel of oil. This conversion ratio is based upon an energy equivalent conversion method primarily applicable at the burner tip and does not represent value equivalence at the wellhead. BOE figures may be misleading, particularly if used in isolation.

HIGHLIGHTS Three months ended Nine months ended
Sept. 30 , Sept. 30 , Sept. 30 , Sept. 30 ,
(unaudited) 2011 2010 2011 2010
Financial ($ thousands, except per share amounts)
Petroleum and natural gas revenue 1,105 346 2,991 983
Funds flow from operations * 600 86 1,463 159
Per share - basic and diluted 0.02 0.00 0.04 0.00
Cash flow from operations 599 (15 ) 1,544 243
(including changes in working capital)
Per share - basic and diluted 0.02 0.00 0.04 0.01
Net loss (1,079 ) (478 ) (1,238 ) (826 )
Per share - basic and diluted (0.03 ) (0.02 ) (0.04 ) (0.03 )
Capital expenditures, net of dispositions 2,836 1,314 7,129 4,401
Total assets 17,096 12,191 17,096 12,191
Working capital 2,078 3,045 2,078 3,045
Common shares
Outstanding (millions) 38.5 29.4 38.5 29.4
Weighted average (millions) 38.5 29.4 35.2 26.5
Operations (units as noted)
Average production
Natural gas (mcf/day) 452 419 418 352
Oil and NGL (bbls/day) 126 33 112 31
Total (BOE/day) 202 103 181 90
Average sales price
Natural gas ($/mcf) 3.99 3.55 4.00 3.98
Oil and NGL ($/bbl) 80.76 67.93 83.21 70.89
Netback per BOE ($/BOE)
Petroleum and natural gas revenue 59.52 36.41 60.45 40.15
Royalties 3.09 2.30 3.43 1.75
Operating 16.85 12.98 13.81 12.81
Transportation 1.70 1.94 1.82 1.53
Operating netback 37.88 19.19 41.39 24.06

* Management uses funds flow from operations (before changes in non-cash working capital and decommissioning expenditures) to analyze operating performance. Funds flow from operations does not have any standardized meaning prescribed by IFRS and therefore may not be comparable with the calculation of similar measures for other entities.

Operations review

All of the Company's oil and gas properties are located in Alberta. The Company is focusing on its' existing medium and light oil properties located in central and southern Alberta. At September 30, 2011 undeveloped land holdings totalled 159,100 gross (155,700 net) acres with an average working interest of 97.8%.

During the third quarter Traverse completed the drilling of 2 gross (2 net) wells on the Company's Turin Property. Both wells were cased for potential oil production from several zones. These wells are currently being evaluated for production and potential tie in to Traverse's existing facilities. These facilities may have to be expanded to handle increased oil and water production. The Company's existing wells in the Turin area produce medium quality oil, minor associated sour natural gas and water. Other activities at Turin included the testing and conversion of an existing well for water injection and an application to the ERCB for approval to dispose of water in the converted well. The natural gas production capabilities were expanded by the addition of a larger chemical sweetening unit to treat the associated sour gas produced with the oil. This expansion is designed to handle all future drilling in the Turin area. Traverse's land holdings in the area total 7,600 gross (7,200 net) acres. The majority of recently acquired land in the area is exploratory and will require further evaluation. Seismic surveys (2D and 3D) are planned to assist in the exploration and development of the area. The seismic will be shot during frozen ground conditions, likely during the first quarter of 2012. Several exploratory wells are expected to be scheduled following the acquisition and interpretation of the additional seismic data.

In the Alliance area, Traverse drilled one horizontal well (0.93 net) targeting Viking oil in June. A 1,075 meter horizontal leg was drilled, completed and tied-in. The well was placed on production in early August with initial rates of 50 BOE/d (90% oil). The well continues to produce at a rate of approximately 45 BOE/d (75% oil). An application has been submitted to the ERCB to allow for an additional well to be drilled on the 320 acre spacing unit.

At Carbon Traverse recently placed a 100% working interest vertical Pekisko oil well on production. This well is producing at low oil rates with associated natural gas. The well confirms the existence of oil within the Pekisko zone which appears to be uneconomic in vertical wells. Production rates and recoverable reserves from Pekisko horizontal wells are projected to be much more economic. Other operators have been drilling horizontal Pekisko wells in nearby areas. Traverse recently spudded its' first horizontal well targeting Pekisko oil. This well is projected to drill a 1,000 meter horizontal section in the Pekisko formation and is the first horizontal in the area to be drilled by Traverse. Traverse's land holdings in the Carbon area total 9,500 acres at a 100% working interest.

In the Brazeau area of West Central Alberta, an industry partner commenced production in September from three horizontal wells in which the Company has a gross overriding royalty interest. Traverse's royalty is 5 to 10 percent on oil, dependent on production rates, and 10 percent on natural gas and liquids in 10 sections (6,400 acres). The operator has recently drilled one additional well and has licensed several more wells on the Traverse lands. Initial results appear to be encouraging.

Forward-looking information

This press release contains forward-looking information. Forward-looking information is based upon the opinions, expectations and estimates of management as at the date the information is provided and, in some cases, information received from or disseminated by third parties. In particular, the Company's statements with respect to a planned facility expansion at Turin, seismic activities for 2012, scheduled follow-up drilling in the Turin area, production rates and recoverable reserves from Pekisko horizontal wells being projected to be much more economic, projected horizontal drilling in the Carbon area, volatility in commodity markets impacting realized prices in 2011, increasing royalty rates on existing production, the range of operating costs, and intentions for funding capital expenditures during the remainder of 2011 are forward-looking information. This forward-looking information is subject to a variety of substantial known and unknown risks and uncertainties and other factors that could cause actual events or outcomes to differ materially from those anticipated or implied by such forward-looking information. The Company's Annual Information Form filed with securities regulatory authorities (accessible through the SEDAR website describes the risks, material assumptions and other factors that could influence actual results and which are incorporated herein by reference.

The forward-looking information contained in this press release is made as of the date hereof and the Company undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.

Further details on the Company including the 2011 third quarter unaudited financial statements, the related management's discussion and analysis and Annual Information Form are available on the Company's website and SEDAR.

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

Contact Information:

Traverse Energy Ltd.
Laurie Smith
President and CEO