TUSCANY ENERGY LTD. ANNOUNCES RESULTS FOR THE SIX MONTHS ENDED JUNE 30, 2010

Tuscany Energy Ltd. (TSXV: "TUS")

CALGARY, Aug. 31 /CNW/ - Tuscany is pleased to report that the third horizontal Dina well on the Company's Evesham, Saskatchewan property has been successfully drilled and commenced production in July 2010. The well is the best well in the pool to date and is currently producing at an average rate of 110 Bbls/d with a 14% water cut.

The three wells in pool are currently producing 175 Bbls/d. Tuscany has a 60% interest in the property. Tuscany is encouraged by the success to date in developing this pool and plans to continue drilling operations, with two additional wells adjacent to the new well on reduced spacing in Q4 2010. This will increase the pace of development and the Company's growth plans.

A summary of current and cumulative production from the wells to Aug 25, 2010 is:

    
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                                                              Estimated
                                     Current           Cumulative Production
    Evesham Dina Production     Production Rate          To August 25, 2010
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                                      Bbls/d                       Bbls
    Evesham 2-21                          20                     14,300
    Evesham 16-16                         45                     11,600
    Evesham 15-16                        110                      4,850
    -------------------------------------------------------------------------
    Total field                          175                     30,750
    -------------------------------------------------------------------------
    

Financial

Revenue for the first six months of 2010 totaled $1,408,000 compared with $924,000 in the same period of 2009. The Company reported cash flow from operations of $283,000 for the period, compared with $158,000 in the six months ended June 30, 2009. Tuscany reported a loss of $216,000 for the period versus a loss of $254,000 for the same period in 2009.

Capital expenditures for the six months ended June 30, 2010 totaled $1.1 Million compared with $334,000 during the same period in 2009.

At June 30, 2010 Tuscany had a net debt of $3.55 million.

Business Outlook

Oil prices remained very strong during Q2 2010 compared with the extreme weakness in the second half of 2009. Tuscany is primarily an oil producer and plans to continue the development of its heavy oil property at Evesham, Saskatchewan, drilling a further two development wells on the property over the balance of 2010.

In addition, to maximize the Company's exposure to new prospects while minimizing the overhead expenditures, the Company has entered into a Joint venture with two related public companies, Diaz Resources Ltd and Sharon Energy Ltd. Tuscany will share overhead costs with these partners and participate for a 30% interest in all new prospects developed by the group.

The Company, with a solid production base, excellent relatively low risk exploration and development projects and a smaller, compact management team is ideally suited to grow in the current economic environment.

To view the Evesham - Dina Net Oil Pay map please visit: http://files.newswire.ca/883/Evesham_Dina.pdf

Summary of Financial Operating Results

Revenue for the first six months of 2010 totaled $1,408,000 compared with $924,000 in the same period of 2009. The Company reported cash flow from operations of $283,000 for the period, compared with $158,000 in the six months ended June 30, 2009. Tuscany reported a loss of $216,000 for the period versus a loss of $254,000 for the same period in 2009.

Capital expenditures for the six months ended June 30, 2010 totaled $1.1 Million compared with $334,000 during the same period in 2009.

At June 30, 2010 Tuscany had a net debt of $3.55 million.

ADVISORY: Certain information regarding the Company in this News Release including management's assessment of future plans and operations may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers, inability to retain drilling rigs and other services, capital expenditure costs, including drilling, completion and facilities costs, unexpected decline rates in wells, wells not performing as expected, incorrect assessment of the value of acquisitions, failure to realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources. As a consequence, actual results may differ materially from those anticipated in the forward-looking statements. Readers are cautioned that the foregoing list of factors is not exhausted. Additional information on these and other factors that could effect the Company's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website (www.sedar.com) and at the Company's website (www.tuscanyenergy.com). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Where amounts are expressed on a barrel of oil equivalent (boe) basis, natural gas volumes have been converted to barrels of oil at six thousand cubic feet (mcf) per barrel (bbl). Boe figures may be misleading, particularly if used in isolation. A boe conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

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 THIS RELEASE.

For further information: Robert W. Lamond, Chairman & CEO, TUSCANY ENERGY LTD., Telephone: [phone], Fax: [phone]; John G.F. McLeod, Vice President & COO, TUSCANY ENERGY LTD., Telephone: [phone], Fax: [phone]; TSX Venture: TUS