Anterra Corporation

Anterra Corporation

March 10, 2005 17:07 ET

Anterra Announces Year End Reserves, Operations Update, Management Addition and Options Award




MARCH 10, 2005 - 17:07 ET

Anterra Announces Year End Reserves, Operations
Update, Management Addition and Options Award

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Anterra Corporation,
(TSX VENTURE:ATR) ("Anterra" or the "Company") is pleased to provide the
following summary information from its annual independent reserves
evaluation, and takes this opportunity to include an operations update
on oil and gas exploitation activities, midstream plant operations and
recent management additions with associated stock option awards.


The engineering evaluation of Anterra's petroleum and natural gas
reserves was completed by Martin & Brussett Associates ("MBA") for all
of the properties of Anterra effective December 31, 2004. These
estimates were prepared in accordance with National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities (NI 51-101). Anterra
will release its financial results for the period ended December 31,
2004 during the first week of April, 2005.


- An increase of 80% in the net present value (before tax discounted at
10%) of total proved and probable reserves to $9.189 million.

- An increase of 60% in the net present value (before tax discounted at
10%) of the midstream business to $3.340 million.

- A 4% decrease in total proved plus probable reserves to 0.565 million
barrels of oil equivalent.

- The Company's reserve life index ("RLI") is 9.6 years on a proved and
probable basis and 6.2 years on a proved basis, on annualized average
fourth quarter production.

- Production averaged 161 boepd for the fourth quarter ending December
31, 2004, up 49% compared to the fourth quarter ending December 31, 2003
average of 108 boepd.

- Midstream processing volumes averaged 661 cubic meters per day for the
fourth quarter ending December 31, 2004, up 60% compared to the fourth
quarter ending December 31, 2003 average of 413 cubic meters per day.

Approximately 83% of the Company's gross reserves are oil, while the
remaining 17% of gross reserves are comprised of natural gas and natural
gas liquids. The 60% increase in the net present value of the Company's
midstream business was a result of volume increases at Breton and
capital investments at Suffield.

Pursuant to NI 51-101, proved reserves assignments are based on a 90%
certainty that quantities recovered will be equal or exceed proved
reserve estimates. Probable reserves are assigned such that there is a
minimum 50% certainty that quantities recovered will equal or exceed
estimates of proved plus probable reserves. The new standard provides
for a more conservative evaluation of proven and probable reserves,
particularly on new wells where a production history has not been
established. The following tables summarize the Company's gross and net
interests in proved and probable reserves at December 31, 2004, under
forecast pricing assumptions.


Light and Medium Natural Gas Natural Gas
Oil Liquids
Gross Net Gross Net Gross Net
(mbbl) (mbbl) (mmcf) (mmcf) (mbbl) (mbbl)
Developed Producing 341 333 294 208 4 2
Non-Producing 0 0 11 10 0 0
Total Proved 341 333 305 218 4 2

Probable Developed 98 94 87 65 1 1
Probable Undeveloped 100 91 0 0 0 0
Total Probable 198 185 87 65 1 1

Total Proved
plus Probable 540 518 392 283 4 3


Before Deducting Income Taxes
Discounted At
0% 5% 10% 15% 20%
(M$) (M$) (M$) (M$) (M$)
Developed Producing 8,162 6,856 5,927 5,239 4,713
Developed Non-Producing 10 8 7 5 4
Total Proved 8,172 6,864 5,933 5,244 4,717

Probable Developed 4,731 2,965 2,091 1,581 1,253
Probable Undeveloped 2,246 1,579 1,165 892 700
Total Probable 6,977 4,544 3,256 2,473 1,953

Total Proved Plus Probable 15,148 11,408 9,189 7,717 6,670

After Deducting Income Taxes
Discounted At
0% 5% 10% 15% 20%
(M$) (M$) (M$) (M$) (M$)
Developed Producing 6,853 5,772 5,002 4,432 3,995
Developed Non-Producing 7 5 4 2 1
Total Proved 6,860 5,777 5,006 4,434 3,996

Probable Developed 4,208 2,708 1,947 1,495 1,199
Probable Undeveloped 1,263 845 593 429 316
Total Probable 5,471 3,553 2,540 1,924 1,515

Total Proved Plus Probable 12,331 9,330 7,546 6,358 5,511

Anterra's Statement of Reserves Data and Oil and Gas Information
required under NI 51-101 will be included in the Company's Annual
Information Form and will be filed on SEDAR during the first week of
April, 2005.


Breton: The Company's midstream facility at Breton continues to meet
management's expectations with monthly throughput at an all time high
averaging over 580 cubic meters of fluid per day. The plant and crude
oil pipeline pump are now operating at 75% of capacity and during the
second quarter, Pembina Pipeline plans to increase throughput capacity
by installing a larger pump. Over the past three months several wells
were re-completed in the Belly River formation and production at Breton
is now running at 170 boepd. More importantly however, the most recent
well re-completions have resulted in a significant increase in natural
gas production. It should be noted that the associated natural gas
reserves are not included in the reserves summary above and management
has now decided to delay the drilling of the planned development well
until the second quarter to allow more time to fully examine the
existing reservoir conditions. Exploitation of the oil and gas reserves
at Breton continues with several suspended well work-overs scheduled for
the second quarter. Management is targeting second quarter exit
production of 250 boepd from Breton.

South-east Alberta: During the past 3 months the Company has been
reviewing its business plans in south-east Alberta with the joint goals
of maximizing oil and gas production out of this area and fully
exploiting the opportunity presented by the mid-stream operation at
Suffield. During this period management invested substantial unbudgeted
capital on the water disposal well at the Scots Lake production facility
and on disposal pump upgrades at the Suffield location. The Scots Lake
disposal well experienced packer and casing problems as well as a
surface casing gas leak requiring expensive remedial work and
re-completion in upper sands. The associated oil well is now back on
production at 20 boepd and the disposal well is back on disposal. At
Suffield, the disposal pump was electrified due to the extensive
maintenance and fuel costs associated with the diesel engine.

With these unexpected and unbudgeted operational issues now resolved,
management is focussing on its plans to increase oil and gas production
in south-east Alberta and to grow mid-stream throughput. At Suffield,
the Company owns 3 net sections of land and an extensive geological
study is underway on these lands. Management is re-completing one
suspended oil well and expects that the geological study underway will
result in several new drilling locations. At Scots Lake it is
management's intention to install a high speed pump on the producing oil
well to increase total fluid and oil production. Production from
south-east Alberta is currently 30 boepd and management is targeting
second quarter exit production from this area of 50 boepd. At Suffield,
an application has been submitted to accept Class 1(b) waters for
disposal and with regulatory body approval expected during the second
quarter, the Company will soon be positioned to accept "frac" fluid
being generated in the area. Anterra is currently only able to accept
Class 2 produced waters for disposal.


On March 1, 2005, Gerry Cartmell, P. Eng. joined the Company as Vice
President, Operations. Mr. Cartmell has 25 years of experience with
major oil and gas companies in Alberta, encompassing drilling,
completions, production operations, facilities management and reserves
evaluations and brings a unique depth of experience to Anterra. Mr.
Cartmell will assume responsibility for the Company's oil and gas
production operations and is tasked with exploiting the development
opportunities on the Company's producing properties. Mr. Cartmell has
been awarded 250,000 options to purchase Anterra's shares at $0.29 per
share subject to the terms of the Company's Option Plan.

Anterra Corporation ("Anterra") is a diversified energy company with a
focus on the exploitation of oil and gas reserves and the development of
associated fee-based energy projects in Western Canada. Anterra is a
public Canadian company listed on the TSX Venture Exchange under the
symbol ATR and currently operates through its two wholly owned
subsidiaries; Anterra Resources Inc. and Anterra Midstream Inc. More
information about Anterra is available on the internet at

This news release may contain forward-looking information. Actual future
results may differ materially from those contemplated.

Common Shares Outstanding: 21,930,000


Contact Information

    Anterra Corporation
    Owen C. Pinnell
    President and Chief Executive Officer
    (403) 215-2427
    (403) 261-6601 (FAX)
    Anterra Corporation
    Bob Dittmer
    Chief Financial Officer
    (403) 215-0860
    (403) 261-6601 (FAX)
    The TSX Venture Exchange Inc. has neither approved nor disapproved of
    the contents of this press release.