The Buffalo Oil Corporation

The Buffalo Oil Corporation

April 20, 2007 08:30 ET

Buffalo Oil Provides Reserves and Operations Update

CALGARY, ALBERTA--(CCNMatthews - April 20, 2007) - The Buffalo Oil Corporation (TSX VENTURE:BFO) ("Buffalo") announces that its independent engineers, Paddock Lindstrom & Associates Ltd. ("PLA") have completed their evaluation of the Company's oil and gas reserves as at December 31, 2006 in accordance with the standards set out in National Instrument 51-101. Summary results of this evaluation using PLA's forecast of prices and costs as at December 31, 2006 are as follows:

- Proved reserves of 3.24 million boe, an increase of 230% over 2005.

- Proved plus probable reserves of 5.23 million boe, an increase of 200% over 2005.

- Net present value of proved plus probable reserves before tax, discounted at 10% per annum, amounting to $54.1 million.

At December 31, 2006, Buffalo's net asset value is estimated by management to be in the range of $2.25 per fully diluted share. This determination uses the net present value of proved plus probable reserves of $54.1 million, the net book value of undeveloped land and seismic costs and the unaudited net working capital position of the Company.

The bulk of the Company's reserves are at Frog Lake, Alberta where management's estimate of the original oil in place within the lands held by Buffalo is in excess of 300 million barrels. The Company anticipates the overall recovery from the various oil reservoirs to be in the 7% to 10% range based on "cold flow" production techniques. Buffalo has identified several areas at Frog Lake where the McLaren sand has continuous oil pay in excess of 20 metres with the potential for improved recoveries through the use of steam assisted gravity drainage ("SAGD") or other enhanced recovery techniques. At the request of the Company, no contingent or possible reserves were assigned by PLA at this time.

The cost of finding, developing and acquiring proved plus probable reserves was $11.07 per boe in 2006 and includes the acquisition of a natural gas focused company and a minor disposition. Excluding property acquisitions and dispositions, the 2006 finding and developing costs was $7.23 per proved plus probable boe or $10.31per total proved boe.

Buffalo's average production for 2006 was 1,517 boe/d, an increase of 182% over the 539 boe/d in 2005. Despite this dramatic increase, newly assigned reserves replaced Buffalo's production 4.3 times on a total proved reserves basis and 5.8 times on a proved plus probable reserves basis. In 2006, Buffalo produced an average of 29.2 thousand boe per million Buffalo common shares outstanding, compared with 14.7 thousand boe per million common shares in 2005, a 98% improvement.

2007 Guidance

Buffalo's average production for the month of December 2006 was 2,117 boe/d and field estimates indicate that this rate has been maintained through the first quarter of 2007. The "Heavy Oil Differential", the gravity price discount applied to heavy oil relative to the price of light oil, averaged US$16.23 per barrel for the period January 2007 to March 2007, an improvement of US$12.45 per barrel compared with the same period last year and this trend appears to be continuing. In this environment, Buffalo will realize an average price for its sales of Frog Lake heavy oil production in the first quarter 2007 which is more than 50% higher than the average selling price in the first quarter of 2006.

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.

Barrels of oil equivalent (Boe's) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf of gas = 1 Bbl of oil is based upon an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain information set forth in this press release contains forward looking statements. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, reliance should not be placed on forward-looking statements. Buffalo's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Buffalo will derive therefrom. Buffalo disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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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