SOURCE: Caliber Energy, Inc.

May 31, 2005 08:00 ET

Caliber Updates Bolloque Project -- "7-1-64-25W4M" Well Prepares to Drill

LOS ANGELES, CA -- (MARKET WIRE) -- May 31, 2005 -- Caliber Energy, Inc. (OTC BB: CALB), today updates the Bolloque Oil Play.

Caliber recently announced the preparations for the spud of the first oil well at the Bolloque Project, Alberta, Canada. The well designation is 7-1-64-25W4M. Caliber is now advancing funds required to complete the well licensing and site preparations totaling $45,000 as part of the executed Authority for Expenditure (A.F.E.) totaling $329,000 to drill, test and case the well.

Access to the well site is excellent and government road bans have been lifted. The first well location is 200 yards from a producing gas well and 2 miles from a municipal road. Caliber is sourcing a drilling rig for the project. A spud date is expected within 3 to 4 weeks, dependent on rig availability.

An independent reservoir engineer and geophysicist have confirmed the presence of a Leduc Pinnacle Reef buildup under the Company leases where a reef buildup of approximately 30 meters (98.5 feet) is present. Analog comparison wells in the Acheson D-3A pool with less pay thickness than Bolloque have had peak production rates of 300 barrels per day. The project is located 60 miles north of Edmonton, Alberta, in the prolific oil producing Leduc area. Leduc Reef oil fields south of Bolloque contain oil wells that produce oil at rates of several hundred barrels per day. Also, individual wells have cumulatively produced over one million barrels of oil. Production has been between a low of 145 and a high of 400 barrels per day with pay thickness of 35 to 142 feet.


Caliber Energy, Inc. is a growth oriented Company primarily focused on developing advanced coal projects and other high potential business opportunities in the energy sector. Caliber is focusing on coal, oil and natural gas. Caliber's primary focus is on advancing coal projects to production, combined with the opportunities management has identified that would provide immediate cash flow and revenue by securing coal trade agreements. Caliber augments the coal projects with oil and gas opportunities that are low risk with a high rate of return. With this diverse portfolio, Caliber Energy minimizes risk as the Company meets demand for fossil fuels.

Safe harbor for Forward-Looking Statements:

Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Caliber Energy, Inc. has little or no control.


Caliber Energy, Inc.

"Graeme F. Scott"

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    Graeme Scott