Accrete Energy Inc.

Accrete Energy Inc.

February 24, 2005 15:33 ET

Accrete Energy Inc. Announces Year-End Reserves


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: ACCRETE ENERGY INC.

TSX SYMBOL: GZ

FEBRUARY 24, 2005 - 15:33 ET

Accrete Energy Inc. Announces Year-End Reserves

CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - Accrete Energy Inc.
(TSX:GZ) is pleased to announce results of its year-end reserves report
as prepared by Gilbert Lausten Jung as at December 31, 2004.

Accrete has received its updated independent reserve evaluation report,
compliant with National Instrument 51-101 from Gilbert Laustsen Jung
Associates ('GLJ'). Under NI 51-101, proved reserve assignments are
based on a 90 percent certainty that total quantities recovered will
equal or exceed proved reserve estimates. Proved plus probable reserves
are the most likely case and are based on a 50 percent certainty that
they will equal or exceed estimates. The new standard provides for a
more conservative evaluation of proven and probable reserves,
particularly on new wells where production history has not yet been
established. The reserves committee of Accrete's board of directors,
which is made up of a majority of independent directors, met with GLJ
representatives and has reviewed the independent evaluator's reserves
report in accordance with the committee's mandate. Summary information
is presented herein. Additional disclosure, in accordance with NI
51-101, will be provided in the company's annual information form.
Reserves for year-end December 31, 2004 are as follows:



Total Proved Reserves (Company Interest)

Heavy
Gas Oil Oil NGL's BOE NPV ($M)
(bcf) (mbbls) (mbbls) (mbbls) (mbbls) 10% 15%

June 1, 2004
Opening 1.7 0 0 13.0 293
Revisions 0 0 0 0 0
Drilling
Discoveries 6.1 0 0 43.9 1058
Drilling
Extensions 0 0 0 590.0 590.0
Acquisitions .18 2.8 0 3.0 35
Divestitures 0.0 0 0 0 0
Production -0.17 0 0 -1.0 -29.0
------------------------------------------------------------------------

December 31,
2004 Closing 7.8 2.8 0 648.9 1947 35767 32727

Total Proved plus Probable Reserves (Company Interest)

Heavy
Gas Oil Oil NGL's BOE NPV ($M)
(bcf) (mbbls) (mbbls) (mbbls) (mbbls) 10% 15%

June 1, 2004
Opening 3.1 0 0 24.0 541.0
Revisions 0 0 0 0 0
Drilling
Discoveries 11.0 0 0 113.29 1944
Drilling
Extensions 0 0 0 845.0 845.0
Acquisitions .21 3.3 0 3.0 40
Divestitures 0.0 0 0 0 0
Production -0.17 0 0 -1.0 -29.0
------------------------------------------------------------------------

December 31,
2004
Closing 14.14 3.3 0 984.2 3341.0 53997 48523



NOTE: Due to number rounding and conversions, some values are
approximate. NPV values are based on GLJ January 1, 2005 price forecast.

Accrete Energy Inc. came into existence as of June 1, 2004 with its
Opening Balance assigned to a single property as reviewed by GLJ. Under
new NI 51-101 reserves definitions, estimates are prepared such that the
full proved plus probable reserves are estimated to be recoverable. The
above reconciliation and comparisons outlined above reflect current
proved plus probable reserves versus previous proved plus probable
reserves as carried by Accrete upon its inception and as recognized by
GLJ. Investors should note that boes may be misleading, particularly if
used in isolation. A boe conversion ratio of 6 Mcf: 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.

Total Proved plus Probable Reserves have increased 518% from June 1,
2004 (Company inception) from 541 mboe to 3341 mboe. Total Proved
Reserves increased 564% over the same period, from 293 mboe to 1847
mboe. Proved Producing Reserves account for 921 mboe or 47%. Proved
Non-Producing volumes are 862 mboe or 44%. Proved Non Producing reserves
will be placed on production by mid to end of the 2nd Quarter as plant
constraints are removed. Proven Undeveloped Reserves account for 8% of
the Total Proven Reserve base.

The Reserve Report does not reflect the increase in the opportunity base
in Accrete's core areas which has been accomplished during the early
part of Q1, 2005.

Accrete Energy Inc. is an oil and gas exploitation and production
company with a solid base of production, balanced drilling portfolio and
an extensive development program in core company operated properties.
Accrete shares trade under the symbol "GZ" on the Toronto Stock Exchange.


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Accrete Energy Inc.
    Mr. Peter Salamon
    President and CEO
    (403) 269-8846
    Email: investor@accrete-energy.com
    or
    Accrete Energy Inc.
    2100, 500 - 4th Avenue SW
    Calgary, Alberta T2P 2V6