/C O R R E C T I O N from source -- Winstar Resources Ltd./

In c3543 transmitted today at 16:48e an error occured in the "Operational and Financial Highlights - from continuing operations" table. Corrected copy follows:

Winstar releases Q3 2010 Financial and Operational Results

CALGARY, Nov. 11 /CNW/ - Winstar Resources Ltd. ("Winstar" or the "Company") is pleased to announce its financial and operating results for the three and nine month periods ended September 30, 2010 (all dollar values are expressed in Canadian dollars unless otherwise stated). 

Q3 2010 financial and operating results as compared to Q3 2009
The financial and operating results for Q3 2010, as compared to continuing operations reported during Q3 2009, show a marked improvement reflecting stronger commodity prices and increased production.

• Production was up 12% to 1,998 boepd as compared with 1,790 boepd during Q3 2009.
• Field operating netback in Tunisia was $58.59 per boe; a 23% increase as compared to Q3 2009.
• Funds from continuing operations were $8.5 million ($0.24 per share); 28% higher than the $6.7 million reported in Q3 2009.

Production during Q3 2010 was positively affected by:

• the commencement of production from Chouech Essaida Triassic Development well 11 (CS#11) which produced an average of 550 bopd during the quarter;
• positive results from workovers at CS#1 and CS#7, within the Chouech Essaida Triassic Oil Field which increased production by 661 bopd.
• The increases in oil production were partially offset by a 75% reduction in gas sales from Chouech Essaida relative to Q3 2009 due to third party transportation restrictions. Gas sales have increased again at the end of October 2010 to approximately 700 mcfd (115 boepd) but there remains no assurance that current sales volumes will remain stable.  During October 2010, Winstar averaged approximately 2,050 to 2,100 boepd of production.

Funds from continuing operations during Q3 2010 were $8.5 million, which are a significant improvement relative to Q3 2009 of $6.6 million. Due to the timing of tanker sales during the quarter, the Company was unable to sell 100% of Q3 production and crude oil inventory increased by 10,100 bbls, resulting in a September 30, 2010 inventory balance of 33,100 bbls.  At current market prices of approximately US $80, the 33,100 bbls of inventory represent approximately $2.4 million of incremental funds from operations after deducting approximately $360,000 in operating expenses booked as cost of crude inventory.  The Company is currently planning tanker sales during Q4 to ensure that the existing crude inventory is sold prior to December 31, 2010. 

Operational and Financial Highlights - from continuing operations

			Three Months Ended September 30			Nine Months Ended September 30
Financial			2010	2009	% Change	2010	2009	% Change
Oil and gas sales			13,985	11,222	25	35,344	25,175	40
Net royalty			(1,744)	(1,263)	38	(4,164)	(2,609)	60
Operating expense			2,206	1,909	16	6,387	6,023	6
General and administrative expense (excludes non-cash stock based compensation)			(1,421)	(1,633)	(13)	(4,211)	(4,026)	5
Current income tax			-	(328)	-	-	(1,025)	-
Funds from operations			8,525	6,582	28	20,159	12,412	62
Net income (loss)			779	694	-	754	(174)	-
Capital expenditures			7,004	1,131	519	23,320	13,807	69
Total production (boepd)			1,998	1,790	12	1,741	1,452	20
Total sales (boepd)			1,888	1,790	5	1,648	1,452	13
	Oil (bopd)		1,747	1,432	22	1,467	1,199	22
		Average price ($ per bbl)	81.84	73.29	12	80.65	65.31	23
	Gas (mcfpd)		851	2,147	(60)	1,083	1,520	(29)
		Average price ($ per mcf)	10.68	7.92	35	10.28	9.22	11
Operating expense ($ per boe)			12.70	11.59	10	14.20	15.21	(7)

Operations Update
Chouech Essaida Triassic Development Well 13 - CS#13
The Company completed the drilling of CS#13 to a total depth of 2,485 meters.  The well, which spud on September 28, 2010, and was rig released on October 31, 2010, ahead of projected time and under budgeted costs.  The 33 day drilling operation was the best performance by the Company to date, to this depth, and represents a significant improvement in the Company's drilling operations.  The open-hole logs, obtained during the final week of October 2010 provided conflicting results with the information obtained during drilling, which indicated the Triassic sands had good oil and gas shows. 

Following perforation of three prospective zones and installation of completion equipment, the Company commenced testing of the well on November 3, 2010.  Testing of the first 2 zones resulted in relatively low production rates of water and uneconomic traces of oil.  The Company is currently testing the final zone which will be followed by a final test to flow all three zones commingled using coil tubing and nitrogen.  If upon completion of the testing program there is still no prospect of economic production, the Company will review the possibility of re-completing as a water disposal well.

Chouech Essaida Silurian Exploration Well 1 - CS Sil#1
Following the completion of operations at CS#13, the drilling rig moved to the CS Sil#1 location and spud in early November.  The well is targeted to drill 4,400 meters to test the Silurian Acacus formation and is anticipated to take 60 days to drill and complete with a budgeted cost of US $12.0 million.  Due to the multi-level formation of the Silurian Acacus formation, testing could take up to 30 days and is budgeted to cost an additional US $3.0 million depending on the hydrocarbon phase encountered and could be lower in the well if it is predominantly oil.  If successful, the Company expects that test results from the well will be available during the first quarter of 2011. 

Outlook
The Company has the contractual option to use the same drilling rig to drill one additional well immediately after CS Sil#1. The option can be exercised up to 30 days prior to rig release of the CS Sil#1 well, which is expected to be in late December 2010. The Company has not yet determined whether it will exercise this option as it is the Company's mandate that the ongoing capital program will be funded primarily through existing working capital and ongoing funds from operations.

BOE

References herein to boe mean barrels of oil equivalent derived by converting gas to oil in the ratio of 6,000 cubic feet (mcf) of gas to one barrel (bbl) of oil. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf: 1 bbl is based upon an energy conversion method primarily applicable at the burner tip and does not necessarily represent a value equivalency at the wellhead.

Non-GAAP Measures
Funds from operations are a non-GAAP measure, defined by the Company as cash flow from operating activities excluding:

• The change in non-cash working capital related to continuing and discontinued operations, which is eliminated to show the net cash effect on income;
• Geological and geophysical expenses from continuing and discontinued operations, which are costs incurred for the purpose of generating future investment opportunities and are therefore not indicative of operational performance; and
• Expenditures on asset retirement obligations and reclamation, which are also not indicative of operational performance.

Management uses funds from operations to analyze performance and considers it to be a key measure as they demonstrate the Company's ability to generate the cash necessary to fund future capital investments. Winstar's determination of funds from operations may not be comparable to that reported by other companies nor should they be viewed as an alternative to cash flow from operating activities, net earnings or other measures of financial performance calculated in accordance with Canadian GAAP.

Field operating netback is a non-GAAP measure defined by the Company as revenue, plus international royalty income less royalty, operating expense and current income tax. Management considers field operating netbacks an important measure as they demonstrate the Company's profitability from field operations, before general and administrative costs, relative to current commodity prices.

Forward-looking Statements

This press release contains certain forward-looking statements. These statements relate to future events or future performance of the Company. When used in this press release, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "predict", "seek", "propose", "expect", "potential", "continue", and similar expressions, are intended to identify forward-looking statements. These statements involve 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. Such statements reflect the Company's current views with respect to certain events, and are subject to a number of risks, uncertainties and assumptions. Many factors could cause Winstar's actual results, performance, or achievements to materially differ from those described in this press release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in other public disclosures made by the Company or this press release as intended, planned, anticipated, believed, estimated, or expected. Specific forward-looking statements in this press release include, among others, statements pertaining to the following: factors upon which Winstar will decide whether or not to undertake a specific course of action; and estimated volumes and timing of future production; business plans for drilling, exploration and development; and other expectations, beliefs, plans, goals, objectives, assumptions, information and statements about possible future events, conditions, results of operations or performance. The risks to which the Company is subject include those of the oil and gas industry in general, including operational risks in exploring for, developing and producing crude oil and natural gas; risks and uncertainties involving geology of oil and gas fields and deposits; volatility in global market prices for oil and natural gas; general economic conditions; competition; liabilities and risks, including environmental liability and risks inherent in oil and gas operations; uncertainties as to the availability and cost of financing and changes in capital markets; alternatives to and changing demand for petroleum products; and changes in legislation and the regulatory environment, including uncertainties with respect to the Kyoto Protocol. Furthermore, statements relating to "reserves" or "resources" are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be produced profitably in the future. The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary declaration. These statements speak only as of the date of this press release. The Company does not intend and does not assume any obligation, to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.   

Winstar Resources Ltd. is a Calgary-based junior oil and gas company, which explores for, develops, produces, and sells crude oil, natural gas liquids and natural gas in Tunisia, Hungary and Romania. Winstar's common shares trade on the Toronto Stock Exchange under the symbol WIX.

Winstar's interim financial statements and management discussion and analysis for the three and nine month periods ended September 30, 2010 can be obtained at www.winstar.ca

For further information:

Mr. David Monachello
President
Phone: [phone]
E-mail : [email protected]

Or

Mr. Bradley Giblin
Chief Financial Officer
Phone : [phone]
E-mail : [email protected]

Or

Mr. Charles de Mestral
Chief Executive Officer
Phone: [phone]
E-mail: [email protected]