WHIT Whittier Energy Corp (MM)

Whittier Energy Corporation (NASDAQ:WHIT) announced today a drilling and operations update and the final adjusted closing prices and estimated proved reserves associated with the two acquisitions completed on June 1, 2006 and August 9, 2006 respectively. Drilling and Operations Update Whittier Energy remains on-track to participate in 46 new wells in 2006, a record number for the Company. Through September 8, 2006 the Company has participated in 28 wells with 24 of them successful, for an 85% success rate. This drilling program has been largely responsible for the growth in current daily production to 20 Mmcfe (million cubic feet equivalent), an increase of 42% over year-end 2005. The Company currently has two operated and two non-operated drilling rigs running including one drilling the Rebel #5 located in the Windham Field in the Permian Basin which spudded September 9, 2006 and the non-operated Diamond Development #1 located in Gillis English Bayou. The Company intends to test the recently drilled Westhoff #A-1 this week. The Duhon #1 well, located in Lafayette Parish, Louisiana has been returned to production. The well, which was shut-in by the operator in July of this year to repair casing, is currently producing at approximately 6 Mmcfe per day; however volumes will be monitored over the next few weeks to ensure the well is producing at optimum levels. The Company owns a 9.75% working interest in the well. Acquisition Update The net acquisition price after customary closing and post-closing adjustments for the previously announced acquisitions of Westhoff Ranch located in South Texas and certain Imperial Petroleum properties located in Mississippi and East Texas is approximately $28.1 million with total proved reserves for the two acquisitions after closing adjustments estimated at 15.9 Bcfe (Billion cubic feet equivalent). The Company estimates that it paid an average of $1.77 per Mcfe (Thousand cubic feet equivalent) of estimated proved reserves. In the Westhoff Ranch acquisition the final closing price of $17.9 million reflects purchase price adjustments for revenue and expenses attributed to the Company during the period from the February 1, 2006 effective date of the acquisition through the May 31, 2006 closing date. The Company elected not to close on certain Imperial Petroleum properties resulting in a final closing price of approximately $10.2 million. Management Comments Bryce Rhodes, President and Chief Executive Officer, said, "We are very pleased with our success this year adding substantially to reserves and daily production through both acquisitions and organic growth through the drill bit." Mr. Rhodes went on to say, "On a combined basis the Westhoff Ranch and Imperial Petroleum acquisitions were done at a very competitive cost of approximately $1.77 per Mcfe on estimated proved reserves. These acquisitions have added production, proved and probable reserves and provide significant development opportunity for future growth. In addition, our drilling program has been very successful year-to-date. Approximately 70% of our 2006 capital budget for the year is targeted at non-proved locations and with an 85% overall success rate year-to-date we are demonstrating our ability to grow organically." About Whittier Energy Corporation Whittier Energy Corporation is an independent oil and gas exploration and production company headquartered in Houston, Texas, with operations in Texas, Louisiana and Mississippi. Whittier Energy also holds non-operated interests in fields located in the Gulf Coast, Oklahoma, Wyoming and California. To find out more about Whittier Energy Corporation (NASDAQ:WHIT), visit www.whittierenergy.com. Forward-Looking Statements This news release includes projections and other "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995. These projections or statements reflect Whittier's current views about future events and performance. No assurances can be given that these events or performance will occur as projected and actual results may differ materially from those projected. Important factors that could cause the actual results to differ materially from those projected include, without limitation, the availability and costs of drilling rigs and other oilfield services, drilling and operating risks, exploration and development risks, and other risks inherent in Whittier's business that are detailed in its Securities and Exchange Commission filings. Whittier assumes no obligation and expressly disclaims any duty to update the information contained in this news release except as required by law.