Bison Resources Ltd.
TSX VENTURE : BIS.A

Bison Resources Ltd.

August 29, 2005 16:00 ET

Bison Resources Ltd. 2005 Q2 Financial Results

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) - Bison Resources Ltd. ("Bison") (TSX VENTURE:BIS.A) announces that Bison filed today (through SEDAR) the following quarterly disclosure materials including:

(a) quarterly unaudited financial statements for the six months ended June 30, 2005;

(b) management discussion & analysis for the six months ended June 30, 2005;

(c) quarterly report to shareholders for the six months ended June 30, 2005.

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

As of August 29, 2005 Bison has outstanding 12,104,500 Class "A" Common Shares, and 564,600 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 8,082,228 based on information provided to Bison by its insiders.

Bison's average daily production for the six months ended June 30, 2005 was 1,551 boepd an increase of 183 boepd over the same period last year, a 13% increase.

Oil & natural gas revenues for the six months ended June 30, 2005 were $15.7 million compared to $10.7 million for the six months ended June 30, 2004. For the six months ended June 30, 2005 Bison realized an average price of $57.55 per boe compared to an average price of $43.31 per boe for the same period last year. Realized losses on Bison's fixed price commodity hedge contract resulted in an adjustment of $509 thousand to oil and natural gas revenues for the six months ended June 30, 2005.

Royalties paid during the six months ended June 30, 2005 totaled $2.8 million (18% of revenue or $9.96 per boe) compared to $2.0 million (18% of revenue or $8.09 per boe) for the six months ended June 30, 2004. Production expenses increased from $950 thousand ($3.84 per boe) for the six months ended June 30, 2004 to $1.7 million ($5.97 per boe) for the six months ended June 30, 2005. General and administrative expenses increased to $626 thousand ($2.22 per boe) for the six months ended June 30, 2005 from $514 thousand ($2.08 per boe) for the six months ended June 30, 2004.

Net income for the six months ended June 30, 2005 increased to $2.1 million ($0.18 per share) from $1.6 million ($0.14 per share) for the six months ended June 30, 2004. Cash flow from operations (adding back non-cash items to net income) for the six months ended June 30, 2005 increased to $9.7 million ($0.81 per share or $34.34 per boe) compared to $6.7 million ($0.57 per share or $27.18 per boe) the six months ended June 30, 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)
    or
    Bison Resources Ltd.
    500, 505 - 8th Avenue SW
    Calgary, Alberta T2P 1G2
    (403) 265-5565
    (403) 266-8886 (FAX)
    Website: www.bisonresources.com