Kroes Energy Inc.

Kroes Energy Inc.

October 01, 2007 14:03 ET

Kroes Energy Inc. Announces Drilling Results

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2007) - Kroes Energy Inc.("Kroes") (TSX VENTURE:KRS) today announced that two wells that were drilled in the second quarter under its shallow gas exploration program in east central Alberta have been placed on production with excellent initial results. The more prolific of the two wells is now producing at a gross sales gas rate of 1.1 million cubic feet per day from two zones and the other well is producing at 440,000 cubic feet per day, also from two zones. Kroes holds a 25% interest in these wells so its net share of sales gas production amounts to 385,000 cubic feet per day or 64 barrels of oil equivalent per day.

Kroes now has interests in five producing gas wells and its share of current production is approximately 600,000 cubic feet per day or 100 barrels of oil equivalent per day. Two additional wells that were drilled earlier in the year are awaiting connection and are expected to be on steam in October.

Fred Callaway, President, said "We are extremely pleased with the results of this program, having gone from zero to 100 barrels of oil equivalent per day in one year under difficult industry conditions. We expect to continue with this program and the joint venture partners are now reviewing prospects and preparing plans for the upcoming winter season."

Kroes Energy advised on August 29, 2007 that the shares of Shelton Canada Corp. that it received pursuant to the sale of Zhoda 2001 Corporation would be distributed to Kroes' shareholders. Our Transfer Agent issued the shares to the Canadian Depository Service for distribution to brokerage and banking accounts on September 7, but a technical problem has required reissuing those shares. The new certificates should be in the hands of the various broker accounts within a few days.

BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6MCF:1Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.


This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond Kroes' control, including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition, there are risks and uncertainties associated with oil and gas operations; therefore, Kroes' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that Kroes will derive from that.

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