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Mystique Energy Reports Financial Results for the Second Quarter of 2008

22:06 EDT Thursday, August 28, 2008

CALGARY, Aug. 28 /CNW/ - Mystique Energy, Inc. (MYS:TSX Venture) reports its financial results for the three months ended June 30, 2008.

    <<
    Financial results include:
    -   Cash flow for the three months ended June 30, 2008 was $47.8 thousand
        compared to ($1,431.5) thousand for the same period of 2007.
    -   Net earnings for the three months ended June 30, 2008 was
        $43.7 thousand compared to a net loss of $1464.1 thousand for the
        second quarter of 2007.
    >>

Complete financial results will be filed on SEDAR later today.

In other corporate developments, Mystique continues to work with Petro Energy Corp. to complete the business combination as previously disclosed.

Use of the term barrels of oil equivalent "boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking information. Actual future results may differ materially from those contemplated. The risks, uncertainties, and other factors that could influence actual results are described in documents filed with regulatory authorities.

    <<
                             MYSTIQUE ENERGY INC

                         BALANCE SHEETS (unaudited)


                                                       JUNE 30   DECEMBER 31
                                                          2008          2007
    -------------------------------------------------------------------------
    ASSETS

    Current
      Cash and cash equivalents                   $    258,159  $  8,300,964
      Accounts receivable                              233,672       272,398
      Refundable deposits                              122,528        93,133
      Prepaid expenses                                  27,422       135,934
                                                  ---------------------------
                                                       641,781     8,802,429

    Property, Plant and Equipment                       42,345        50,659
                                                  ---------------------------

                                                  $    684,126  $  8,853,088
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    LIABILITIES

    Current
      Accounts payable and accrued liabilities    $     54,627  $    382,406
      Accounts payable per CCAA                      1,989,265     9,696,456
                                                  ---------------------------
                                                     2,043,892    10,078,862
                                                  ---------------------------

    SHAREHOLDERS' EQUITY

    Share Capital (Note 3)                          16,649,434    16,649,434
    Contributed Surplus                              1,317,252     1,317,252
    Deficit                                        (19,326,452)  (19,192,460)
                                                  ---------------------------
                                                    (1,359,766)   (1,225,774)
                                                  ---------------------------

                                                  $    684,126  $  8,853,088
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                             MYSTIQUE ENERGY INC

                     STATEMENTS OF OPERATIONS AND DEFICIT
                                 (Unaudited)

                              THREE MONTHS ENDED           SIX MONTHS ENDED
                                   JUNE  30                    JUNE  30
                              2008          2007          2008          2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Revenues
      Oil and gas
       revenue        $          -  $  1,395,224  $          -  $  3,288,610
      Royalties net of
       ARTC                      -      (376,405)            -      (906,486)
      Other revenue        124,662        72,543       161,033       176,979
                      -------------------------------------------------------
                           124,662     1,091,362       161,033     2,559,103
                      -------------------------------------------------------

    Expenses
      Production                 -       249,566             -       611,024
      Transportation             -        18,245             -        39,503
      General and
       administration       68,369     2,041,642       277,160     2,390,536
      Depletion,
       depreciation
       and accretion         4,157       778,178         8,314     1,990,906
      Interest               8,517       213,439         9,551       436,737
      Stock-based
       compensation              -        99,736             -       199,473
                      -------------------------------------------------------
                            81,043     3,400,806       295,025     5,668,179
                      -------------------------------------------------------

    Income (Loss) Before
     Income Taxes           43,619    (2,309,444)     (133,992)   (3,109,076)

    Future Income taxes          -      (845,340)            -    (1,231,583)
                      -------------------------------------------------------

    Net Income (Loss) and
     Comprehensive Income
     (Loss) For The Period  43,619    (1,464,104)     (133,992)   (1,877,493)

    Deficit, Beginning
     of Period         (19,370,071)  (11,531,050)  (19,192,460)  (11,117,661)
                      -------------------------------------------------------

    Deficit, End Of
     Period           $(19,326,452) $(12,995,154) $(19,326,452) $(12,995,154)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Loss Per Share
    Basic             $       0.00  $      (0.03) $      (0.00) $      (0.03)
    Diluted           $       0.00  $      (0.03) $      (0.00) $      (0.03)

    Weighted Average
     Number Of Shares
    Basic               59,840,682    59,840,682    59,840,682    59,480,682
    Diluted             59,840,682    59,840,682    59,840,682    59,480,682



                             MYSTIQUE ENERGY INC

                           STATEMENTS OF CASH FLOWS
                                 (Unaudited)

                              THREE MONTHS ENDED           SIX MONTHS ENDED
                                    JUNE  30                    JUNE 30
                              2008          2007          2008          2007
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Operating
     Activities

    Net Income (loss)
     for the period   $     43,619  $ (1,464,104) $   (133,992) $ (1,877,493)
      Add: Items not
       involving cash:
        Future income
         tax                     -      (845,340)            -    (1,231,583)
        Stock-based
         compensation
         expense                 -        99,736             -       199,473
        Depletion,
         depreciation
         and accretion       4,157       778,178         8,314     1,990,906
                      -------------------------------------------------------
                            47,776    (1,431,530)     (125,678)     (918,697)
    Change in
     non-cash working
     capital items:
        Accounts
         receivable         22,550       170,836        38,726       260,618
        Accounts payable
         and accrued
         liabilities      (306,421)    1,457,659    (8,034,970)    1,910,297
        Prepaid expenses
         and deposits       70,604       (10,340)       79,117        21,617
                      -------------------------------------------------------
                          (165,491)      186,625    (8,042,805)    1,273,835
                      -------------------------------------------------------

    Financing
     Activities
    Bank indebtedness            -       221,897             -    (3,885,183)
                      -------------------------------------------------------
                                 -       221,897             -    (3,885,183)
                      -------------------------------------------------------

    Investing Activities
    Oil and gas
     property acquisitions       -      (496,764)            -     2,917,928
    Net change in
     non-cash working
     capital balances            -        88,242             -      (306,580)
                      -------------------------------------------------------
                                 -      (408,522)            -     2,611,348
                      -------------------------------------------------------

    Increase (Decrease)
     In Cash              (165,491)            -    (8,042,805)            -
    Cash, Beginning Of
     Period                423,650             -     8,300,964             -
                      -------------------------------------------------------
    Cash, End of
     Period           $    258,159  $          -  $    258,159  $          -
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Interest Paid     $      8,517  $    206,439  $      9,551  $    429,737
    >>

%SEDAR: 00001147E

For further information: For additional information on Mystique, please contact: Victor Luhowy, President & Chief Executive Officer, Mystique Energy, Inc., Tel: (403) 261-3634, Fax: (403) 265-3348, vic@mystiqueenergy.ca, Website - www.mystiqueenergy.ca

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