Masters Energy, which is engaged in the acquisition, exploration and development of petroleum and natural gas reserves in western Canada, has reported net earnings of C$876,000 for the first quarter of 2008, compared to net loss of C$94,000 for the same period of 2007.

For the first quarter of 2008, the company reported that production increased 16% year over year to 1,675 barrels of oil equivalent per day. The company reported that funds generated by operations increased 77% to C$4.8 million for the first quarter of 2008.

For the first quarter of 2008, funds generated by operations per share increased 82% to C$0.31. The company drilled two successful natural gas wells in a new exploration area with a number of future drilling locations.