Bison Resources Ltd.
TSX VENTURE : BIS.A

Bison Resources Ltd.

May 30, 2005 16:00 ET

Bison Resources Ltd. 2005 Q1 Financial Results

CALGARY, ALBERTA--(CCNMatthews - May 30, 2005) - Bison Resources Ltd. (TSX VENTURE:BIS.A) ("Bison") announces that Bison filed today (through SEDAR) the following quarterly disclosure materials including:

(a) quarterly unaudited financial statements for the three months ended March 31, 2005;

(b) management discussion & analysis for the three months ended March 31, 2005;

(c) quarterly report to shareholders for the three months ended March 31, 2005.

Copies of all of these materials are available for viewing by electronic means from the SEDAR web site (www.sedar.com).

As of May 30, 2005 Bison has outstanding 12,031,000 Class "A" Common Shares, and 638,100 options to acquire Common Shares. Additionally, Bison has determined that Bison's "public float" (the number of shares outstanding not held by directors, officers, promoters, 10% shareholders or their affiliates, spouses, and other associates and not under any hold period or escrow restrictions) is 7,755,528 based on information provided to Bison by its insiders.

Bison's average daily production for the three months ended March 31, 2005 was 1,617 boepd an increase of 193 boepd over the same period last year, a 14% increase.

Oil & natural gas revenues for the three months ended March 31, 2005 were $8.0 million compared to $5.5 million for the three months ended March 31, 2004. Oil & natural gas revenues for the three months ended March 31, 2005 were reduced $152 thousand due to realized losses on Bison's fixed price commodity hedge. For the three months ended March 31, 2005 Bison realized an average price of $54.88 per boe compared to an average price of $42.47 per boe for the same period last year.

Royalties paid during the three months ended March 31, 2005 totaled $1.5 million (19% of revenue or $10.22 per boe) compared to $1.1 million (20% of revenue or $8.44 per boe) for the three months ended March 31, 2004. Production expenses increased from $670 thousand ($5.17 per boe) for the three months ended March 31, 2004 to $872 thousand ($5.99 per boe) for the three months ended March 31, 2005. General and administrative expenses increased to $281 thousand ($1.93 per boe) for the three months ended March 31, 2005 from $223 thousand ($1.72 per boe) for the three months ended March 31, 2004.

Net income for the three months ended March 31, 2005 decreased to $291 thousand ($0.02 per share) from $732 thousand ($0.06 per share) for the three months ended March 31, 2004. Net income for the three months ended March 31, 2005 was reduced $1.7 million due to unrealized losses on Bison's fixed price commodity hedge. Cash flow from operations (adding back non-cash items to net income) for the three months ended March 31, 2005 increased to $5.0 million ($0.42 per share or $34.06 per boe) compared to $3.3 million ($0.28 per share or $25.31 per boe) the three months ended March 31, 2004.

Bison Resources Ltd. is an Alberta-based public corporation actively engaged in the exploration, development, acquisition and production of oil and natural gas in western Canada. Bison's shares are listed for trading on the TSX Venture Exchange under the symbol BIS.A.

CAUTIONARY STATEMENT:

No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. This news release may include certain "forward looking statements". All statements other than statements of historical fact included in this news release, including, without limitation, statements regarding reserves, present value of future cash flow, exploration results, and future plans and objectives of Bison, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Bison's expectations are exploration risks, production risks and pricing risks detailed herein and from time to time in other filings made by Bison with securities regulators.

NON-GAAP MEASURES:

This news release contains the term "cash flow from operations", which should not be considered an alternative to, or more meaningful than, "cash flow from operating activities" or "funds from operations" as determined in accordance with Canadian generally accepted accounting principles ("GAAP") as an indicator of Bison's performance. The reconciliation between net income and cash flow from operations can be found in the Statements of Cash Flows section of the financial statements. Bison also presents cash flow from operations per share whereby per share amounts are calculated using weighted average shares outstanding consistent with the calculation of earnings per share. Production information and reserves are reported in units of barrels of oil equivalent ("boe"). Disclosure provided in respect of boe units may be misleading particularly if used in isolation. Where amounts are stated on a boe basis, gas volumes have been converted to barrels of oil equivalent at a ratio of 6,000 cubic feet of gas to a barrel of oil equivalent. This conversion ratio is based upon an energy equivalent method primarily applicable at the burner tip and does not represent value equivalence at the wellhead.

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

Contact Information

  • Bison Resources Ltd.
    Nicolas S. Swagor
    President
    (403) 265-5565
    (403) 266-8886 (FAX)
    Website: http://www.bisonresources.com
    or
    Bison Resources Ltd.
    500, 505 - 8th Avenue SW
    Calgary, Alberta T2P 1G2