The Buffalo Oil Corporation
TSX VENTURE : BFO

The Buffalo Oil Corporation

August 25, 2005 17:55 ET

Buffalo Announces Results for Second Quarter 2005

CALGARY, ALBERTA--(CCNMatthews - Aug. 25, 2005) - The Buffalo Oil Corporation (TSX VENTURE:BFO) ("Buffalo") today reported its financial and operating results for the six months ended June 30, 2005 with comparatives for 2004.

Highlights for the three months ended June 30, 2005

- Production of 400 boe/d

- Average selling price of $42.01 per boe

- Cash flow from operations of $564,000 or $0.04 per share

- Drilled one (net 0.19) oil well at Ingoldsby, Saskatchewan



Financial & operating results
------------------------------------------------------------------------
Three Months Six Months
For the period ended June 30 2005 2004 %Change 2005 2004 %Change
------------------------------------------------------------------------
Financial ($000's except
per share amounts)
Total revenue $1,529 $ 768 99 $2,793 $1,448 93
Cash flow from operations $ 564 $ 312 81 $1,057 $ 613 72
Per share, diluted $ 0.04 $ 0.04 - $ 0.09 $ 0.08 11
Net earnings (loss) $ (112)$ 9 (1,301)$ (315)$ 56 (663)
Per share, basic
and diluted $(0.01)$ - - $(0.03)$ 0.01 (378)
Capital expenditures $ 342 $ 502 (32)$ 931 $ 920 1
Operating
Average daily production
Oil & NGL's (bbls/d) 235 58 309 214 47 353
Natural gas (mcf/d) 986 849 16 994 859 16
Barrels of oil
equivalent (boe/d) 400 199 101 380 190 100
Average realized selling prices
Oil & NGL's ($/bbl) $39.24 $35.01 12 $38.01 $37.94 0
Natural gas ($/mcf) $ 7.66 $ 7.57 1 $ 7.34 $ 7.18 2
Barrels of oil
equivalent ($/boe) $42.01 $42.40 (1)$40.65 $41.82 (3)
Netback ($/boe) $20.96 $27.70 (24)$20.97 $26.38 (20)
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June 30 December 31
As at 2005 2004 %Change
------------------------------------------------------------------------
Financial ($000's except number of shares)
Working capital surplus (deficit) $ 4,047 $ (1,457) N/A
Shareholders' equity $11,148 $ 5,579 100
Total assets $13,621 $ 9,381 45

Common shares outstanding (000's) 13,183 8,342 58
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Further information on Buffalo's operating and financial results is available on SEDAR where Buffalo's Financial Statements and Management's Discussion and Analysis for the six months ended June 30, 2005, have been filed.

Buffalo is an emerging Canadian junior oil and gas company engaged in the exploration, development and production of oil and gas reserves in the provinces of Alberta and Saskatchewan.

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

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