Aztek Energy Ltd.

May 31, 2006 14:04 ET

Aztek Energy Ltd.: Press Release

CALGARY, ALBERTA--(CCNMatthews - May 31, 2006) - AZTEK ENERGY LTD. (TSX VENTURE:AZK) ("AZTEK") reports that it has closed the sale of its Morinville property for consideration of $7.125 million on May 31, 2006 to an independent third party purchaser. Aztek will retain the right to participate as to a 10% working interest in future drilling by the purchaser at Morinville. Morinville is an asset with current production of approximately 120 barrels of oil equivalent per day net to Aztek and includes 8,000 net acres of undeveloped land. Morinville represents approximately 55% of Aztek's current production and approximately 65% of the December 31, 2005 before tax present value of Aztek's proved plus probable reserves.

Aztek retains its Czar, Ashmont, Botha/Chinchaga and Bashaw properties. These properties have combined production of approximately 100 barrels of oil equivalent per day. Barrels of oil equivalent have been calculated using a conversion rate of 6 thousand cubic feet of gas to one barrel of oil. Following the Morinville disposition Aztek's remaining production will be approximately 35% oil and 65% gas.

Aztek is continuing to take steps to recover an unauthorized receivable owing to Aztek by a former related party. There is no assurance that Aztek will recover the outstanding receivable in a timely fashion.

The disposition of Morinville was necessitated by Aztek's $6,300,000 working capital deficiency as at the end of its quarter ended March 31, 2006. The financial statements for Aztek's quarter ended March 31, 2006 filed on SEDAR provide additional information on Aztek's financial position. Aztek expects to be able resolve liquidity issues flowing from its working capital deficiency as a result of the Morinville disposition.

Aztek currently has 35,594,113 shares outstanding.

Aztek is a publicly traded company on The TSX Venture Exchange

The TSX Venture Exchange has neither approved nor disapproved of the information contained herein.

Contact Information

  • Aztek Energy Ltd.
    Ray Hodgkinson
    V.P. Engineering
    (403) 265-1015