Trimox Energy Inc.

Trimox Energy Inc.

January 17, 2007 17:37 ET

Trimox Energy Inc. Provides Operational Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 17, 2007) - Trimox Energy Inc. ("Trimox" or the "Company") (TSX VENTURE:TRM.A)(TSX VENTURE:TRM.B) is pleased to provide the following operational update.

Fourth quarter 2006 corporate production averaged approximately 900 boe/d and current production is approximately 850 boe/d. One additional recently drilled Devonian gas well (0.5 net) in the Worsley area of northern Alberta is expected to commence production by the end of January and is projected to add an additional 100 boe/d net to Trimox. First quarter 2007 production is budgeted to average approximately 900 boe/d.

Trimox estimates that its total debt and working capital deficit position at year-end 2006 was approximately $6,000,000. Based on budgeted production and a gas price of $6.50/mcf, Trimox expects cash flow to average approximately $500,000 per month.

Activities for the first quarter are expected to include the tie-in of the previously drilled Devonian gas discovery at Worsley and the drilling of one additional well (0.5 net) in the Worsley area. One additional 100% working interest well is planned for the Enchant area of southern Alberta. This well is exploratory and will target a potentially high impact Glauconitic oil reservoir.

Trimox, with the assistance of McDaniel and Associates independent reserve evaluators, is currently assembling its 2006 year-end reserves report. It is anticipated that this report will be finalized and available in February.

Trimox trades on the TSX Venture Exchange under the symbols "TRM.A" and "TRM.B" and has 14,900,000 Class A shares and 450,000 Class B shares outstanding.

This news release contains certain forward-looking statements, including management's assessment of future plans and operations, and capital expenditures and the timing thereof, that involve substantial known and unknown risks and uncertainties, certain of which are beyond Trimox's control. Such risks and uncertainties include, 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, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources, the impact of general economic conditions in Canada and the United States, 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 foreign exchange or interest rates, stock market volatility and market valuations of companies with respect to announced transactions and the final valuations thereof, and obtaining required approvals of regulatory authorities. Trimox's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, including the amount of proceeds, that Trimox will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. All subsequent forward-looking statements, whether written or oral, attributable to Trimox or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and Trimox 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.

Natural gas volumes have been converted to barrels of oil equivalent ("boe") using six thousand cubic feet ("mcf") equal to one barrel ("bbl"). This conversion ratio is based on an energy equivalent conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Trimox Energy Inc.
    Steve Dabner
    President & C.E.O.
    (403) 216-1721
    Trimox Energy Inc.
    Thomas Love
    Chairman & C.F.O.
    (403) 216-1722