Admiral Bay Resources Inc.

Admiral Bay Resources Inc.

January 05, 2005 16:35 ET

Admiral Bay Announces Indicated Oil Well At Swordfish Project In Eastern Kansas




JANUARY 5, 2005 - 16:35 ET

Admiral Bay Announces Indicated Oil Well At Swordfish
Project In Eastern Kansas

TORONTO, ONTARIO--(CCNMatthews - Jan. 5, 2005) -

Questa Engineering Corporation contracted to do reserve report

Admiral Bay Resources Inc. (TSX VENTURE:ADB) announces that the first
well drilled in partnership with Charter Capital Resources Inc. at the
Swordfish Project in Chautauqua County, indicates that it will be an
economic oil producer.

Pipe has now been run on the McKenzie 14-15 well after encountering
positive oil and gas shows in the Layton sandstone, Ft. Scott Limestone,
Cattleman sandstone and Mississippian carbonates. The well reached a
total depth of 2,663 feet into the Arbuckle Dolomite. A total of five
potential oil zones have been identified based on log analysis by
Logtech Inc. of Ft. Hayes, Kansas and from samples and mudlogs run on
the well while drilling. The McKenzie 14-15 is expected to be completed
and produced as an oil well with gas. Completion and production is
expected before the end of January, 2005. The drilling rig has now been
moved to the House 3-25 well location, also in Chautauqua County.

Admiral Bay is the Operator of the well. As per the partnership
agreement previously announced (see news release of December 21, 2004)
Charter has paid for 100% of the drilling and completion costs of the
well. Admiral Bay will back in for 50% of the working interest after
payout. Charter Capital has an option on twelve 320 acre blocks of land.
Further drilling on the acreage blocks will have well spacing of 40
acres and subsequent offset drilling within each block is heads up
50/50. Admiral Bay has retained 100% ownership in all pipelines or
facilities that need to be constructed.

Admiral Bay also wishes to announce that it has contracted Questa
Engineering Corporation to evaluate reserves at the Company's Shiloh and
Devon projects. These reports are expected to be published by the end of
January, 2005.

Admiral Bay Resources Inc. ( is a Canadian oil and
gas exploration and development company focused upon its producing
projects in the Cherokee Basin in south-east Kansas. Production has
begun at the Company's U.S. conventional and coalbed methane (CBM) gas
projects located in the Uintah, Cherokee and Appalachian Basins. The
Company's Moose River Basin property is being explored for coalbed
methane on over 250,000+ acres in the James Bay lowlands of northern
Ontario. The Company is listed on the TSX Venture Exchange.

Statements in this release that are not historical facts are
"forward-looking statements" within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. Readers are cautioned that any
such statements are not guarantees of future performance and that actual
developments or results may vary materially from those in these
"forward-looking statements".


Contact Information

    Admiral Bay Resources Inc.
    Mark Brennan
    President & C.E.O.
    (416) 861-5886
    (416) 861-8165 (FAX)
    Admiral Bay Resources Inc.
    Curt Huber
    Corporate Development
    (604) 628-5642 or Toll Free: 1-866-217-1620
    The TSX Venture Exchange does not accept responsibility for the adequacy
    of this release