Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

June 06, 2006 14:40 ET

Grey Wolf Exploration Inc.: Operational Update

CALGARY, ALBERTA--(CCNMatthews - June 6, 2006) - Grey Wolf Exploration Inc. ("Grey Wolf") (TSX:GWE) announced today that during the first quarter of 2006, the Company drilled a total of 15 gross (9.7 net) wells, of which 14 gross (8.7 net) were cased. Of these, 9 gross (4.9 net) wells have been completed in 18 zones. In addition 9 gross (4.3 net) wells drilled in prior years saw 14 zones completed during the quarter.

In summary, a total of 32 zones have been completed to-date in 18 gross (9.2 net) wells. Thirteen zones in 5 gross (3.8 net) wells are left to complete. Of the 32 zones completed, 3 were not commercial.

The 29 zones completed commercially tested a gross, cumulative rate of approximately 5,100 boe per day or 2,200 working interest boe per day. Our experience is that production rates are typically 65% of test rates. Year to-date, 14 zones in 11 gross (5.9 net) wells have been put on production, yielding 700 working interest boe per day, bringing our total production to 2,945 boe per day. Approximately 700 working interest boe per day of production is still waiting on tie-in.

As previously reported, the Anadarko Progress gas plant is down due to scheduled maintenance for three weeks and consequently Grey Wolf's current production is temporarily curtailed to approximately 2,000 boe per day.

Grey Wolf is an independent Alberta-based, junior oil and natural gas company involved in the development and production of natural gas and crude oil in the Western Canadian Sedimentary Basin. Its common shares trade on the Toronto Stock Exchange under the symbol "GWE".

Forward-Looking Statements - Certain information set forth in this document, including management's assessment of Grey Wolf's future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond Grey Wolf's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Grey Wolf's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. No assurance can be given that any of the events anticipated will transpire or occur, or if any of them do so, what benefits Grey Wolf will derive from them. Grey Wolf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

The calculation of barrels of oil equivalent ("boe") is based on a conversion ratio of six thousand cubic feet of natural gas to one barrel of oil to estimate relative energy content and does not represent a value equivalency - boes may be misleading, particularly if used in isolation.

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