Burmis Energy Inc.

Burmis Energy Inc.

March 15, 2005 10:16 ET

Burmis Energy Closes Financing, Increases Capital Budget and 2005 Guidance and Updates Drilling Activity




MARCH 15, 2005 - 10:16 ET

Burmis Energy Closes Financing, Increases Capital
Budget and 2005 Guidance and Updates Drilling Activity

CALGARY, ALBERTA--(CCNMatthews - March 15, 2005) - Burmis Energy Inc.
(TSX:BME) ("Burmis") is pleased to announce that it has closed a
previously announced common share private placement. A syndicate of
underwriters led by FirstEnergy Capital Corp. and including Acumen
Capital Finance Partners Limited, First Associates Investments Inc. and
Clarus Securities Inc. (collectively, the "Underwriters"), participated
in this bought deal financing. The private placement of 3.0 million
common shares of the Company at a price of $2.70 per common share was
increased when the underwriters exercised an option to issue an
additional 1.0 million common shares under the same terms and conditions
as the original placement. This resulted in Burmis raising total gross
proceeds of $10.8 million. The proceeds from this offering will be used
to fund Burmis' ongoing exploration and development activities, and for
general corporate purposes.


Concurrent with closing this private placement, the Board of Directors
of Burmis has approved a 24 percent increase in the Company's 2005
capital budget to $20.5 million. Burmis plans to participate in up to 24
wells during 2005 with an overall working interest of approximately 50

As a result of our recent drilling success and the expanded capital
budget, Burmis is increasing its guidance for 2005 as follows:

Average production 2,000 barrels of oil equivalent per day
Crude oil and NGL's 865 barrels per day
Natural gas 6.8 million cubic feet per day

Cash flow from operations $14.8 million
per share - basic $0.49

The Company's net debt at the end of 2005 is now projected to be
approximately $7.0 million, less than 0.5 times estimated 2005 cash flow
from operations.

The Company's estimate of cash flow from operations is based upon a
crude oil price of US $40.75 per barrel for West Texas Intermediate, a
natural gas price of $6.70 per thousand cubic feet and a Canadian dollar
to United States dollar exchange rate of 0.81. Operating costs are
expected to average approximately $7.00 per barrel of oil equivalent in
2005 and royalties are estimated at approximately 25.5 percent of gross


To date in the first quarter, the Company has drilled ten gross (6.6
net) wells, all of which have been cased. Six of these wells have been
completed resulting in six (4.0 net) natural gas wells. Four (2.6 net)
wells are awaiting completion.

At Kidney in northern Alberta, Burmis recently cased a potential Keg
River oil well. A second well targeting the same formation commenced
drilling this week. Burmis has a 100 percent working interest in both

At Brazeau, the Company anticipates the drilling of a non-operated
exploration well targeting natural gas in the Nisku formation to
commence later this week. This well is expected to require up to ten
weeks to reach total depth of 3,900 meters. Burmis has a 25 percent
before payout (13.79 percent after payout) working interest in this well.

These wells make up the remainder of Burmis' first quarter 2005 drilling
program. Completion and tie-in activities will be undertaken as weather
and surface conditions permit.

Burmis is a junior Canadian exploration, development and production
company which has focussed its operations in west central Alberta. The
common shares of Burmis trade on the Toronto Stock Exchange under the
symbol "BME".

This news release shall not constitute an offer to sell or the
solicitation of any offer to buy securities in any jurisdiction. The
Burmis common shares have not been nor will be registered under the
United States Securities Act of 1933, and they may not be offered or
sold in the United States absent registration or an exemption from

ADVISORY - Certain information regarding Burmis set forth in this
document, including management's assessment of the Company's future
plans and operations, may constitute forward-looking statements under
applicable securities law and necessarily involve risks associated with
oil and gas exploration, production, marketing, and transportation such
as loss of market, volatility of prices, currency fluctuations,
imprecision of reserves estimates, environmental risks, competition from
other producers and ability to access sufficient capital from internal
and external sources. As a consequence, actual results may differ
materially from those anticipated in the forward-looking statements.


Contact Information

    Burmis Energy Inc.
    Mr. Aidan M. Walsh, P.Eng., MBA
    President and Chief Executive Officer
    (403) 781-7284
    Burmis Energy Inc.
    Mr. Scott R. Dyck, CA
    Chief Financial Officer
    (403) 781-7217
    (403) 261-9028 (FAX)
    Email: ir@burmisenergy.ca
    Website: www.burmisenergy.ca
    The Toronto Stock Exchange has neither approved nor disapproved of the
    information contained herein.