Caribou Resources Corp.

Caribou Resources Corp.

March 22, 2005 20:01 ET

Caribou Resources Corp. Updates Operations


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: CARIBOU RESOURCES CORP.

TSX VENTURE SYMBOL: CBU

MARCH 22, 2005 - 20:01 ET

Caribou Resources Corp. Updates Operations

CALGARY, ALBERTA--(CCNMatthews - March 22, 2005) - Caribou Resources
Corp., (TSX VENTURE:CBU), ("Caribou"), is pleased to provide an update
on the Company's recent activities.

Drilling

Central Alberta

Since early January, the Company has drilled and completed three (1.5
net) horizontal oil wells. The three wells have been tied in to the
Company's operated Redwater oil battery facility (70% working interest)
and came on production in January and February at initial flush combined
rates of approximately 700 bbls/d of oil net to Caribou's 50% interest.
It is expected that these wells will stabilize at approximately 150 to
200 bbls/d of oil net to Caribou within 12 months. The basal quartz
reservoir is characterized by a strong aquifer drive recovery mechanism
that the company estimates will provide elevated oil recovery and long
reserve life. The oil is 28 API and realizes an Edmonton Light oil price
less deductions of $2.10/bbl (quality and tariffs).

Caribou has confirmed the presence of Horseshoe Canyon coal gas on its
approximately 17 net sections of land in Central Alberta. The testing of
the first well in a coal bed methane pilot project has been carried out
and the Company plans to expand the project during the remainder of the
year.

Caribou is currently planning its summer/fall drilling program and is
contemplating a capital program of approximately $8 to $12 million in
the Central Alberta area on lands that are predominantly 70% - 100%
Caribou working interest.

Northern Alberta

In its Northern Alberta core area, Caribou has drilled seven wells (6.5
net to Caribou). To date, completions operations have been finished on
four of the wells resulting in three Slave Point gas wells at Larne and
one abandoned well. Tie-ins are underway on the three Slave Point gas
wells and it is expected that the wells will be tied in by early April.
Completions are currently underway on two other wells at Larne and
Lessard. In addition, optimization activities, including the tie-in of
two wells (52.5% WI) drilled by previous property owners, have been
completed.

Due to the northern location of these company lands the Company's
operations have not been negatively impacted by the warmer temperatures
experienced in other parts of the province.

2005 Production and Cash Flow

Caribou exited Q4 2004 with average production of approximately 1,200
boe/d. Caribou is currently producing approximately 1,600 boe/d (50%
light oil and 50% gas). Caribou estimates that there is over 400 boe/d
of potential production behind pipe that remains to be tied in and
placed on production by April 2005.

- Using $44 WTI, $6.50 gas, an exchange rate of $0.82, and an average
annual production for 2005 of 1,700 boe/d, (approximately 50% light oil
and 50% gas), the Company expects cash flow from operations in the range
of $12.5 to $13.5 million for 2005.

Reserves

100% of the Company's reserves were evaluated by the independent
engineering firm of McDaniel and Associates Consultants Ltd. in
accordance with the definitions set out under National Instrument 51-101
Standards of Disclosure for Oil and Gas Activities ("NI 51-101").
Caribou has received a preliminary draft of the McDaniel report for
December 31, 2004. Caribou will release the full detail of its report
when it has been finalized and reviewed by the Board of Directors, in
conjunction with the release of its 2004 audited annual financial
statements on or about April 25th, 2005.

The preliminary draft report prepared by McDaniel indicates reserves as
at December 31, 2004 as follows:

- Proved plus probable reserves of 4.8 million barrels of oil equivalent
(66% gas)

- Total proved reserves of 2.5 million barrels of oil equivalent (70%
gas)

- Caribou's crude oil, natural gas and natural gas liquids reserves were
evaluated using the McDaniel product price forecast effective January 1,
2005, prior to the provision for income taxes, interest, debt service
charges and general and administrative expenses. The net present value
of the Company's reserves at 10% DCF is $62.1 million. Using strip
pricing, (strip pricing assumptions for WTI are $57.55 for 2005, $55.30
for 2006 and $45.15 for 2007 and AECO assumptions of $7.47 for 2005,
$8.05 for 2006 and $6.93 for 2007), the net present value of the
Company's reserves at 10% DCF is $78.9 million.

- The report indicates a total proven reserve life index ("RLI") of
approximately 4.4 years and total proved plus probable RLI of
approximately 6.8 years.

On March 17, 2005 the Company granted options to purchase 40,000 shares
of the Company to new officers of the Company pursuant to its stock
option plan. The exercise price is $2.50.

Caribou Resources Corp. is an opportunity rich exploration, development
and production company and has:

- over 130,000 net acres of land, (average working interest of 50%
-100%), focused in two core areas of Alberta and operates over 85% of
its production

- 28.2 million basic shares outstanding; 30.7 million shares fully
diluted

- tax pools in excess of $50 million.

This news release may contain forward-looking information. Actual
results may differ materially from those contemplated. The risks,
uncertainties and other factors that could influence actual results are
described in documents filed with regulatory authorities.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Caribou Resources Corp.
    Christina M. Fehr
    Vice Chairman & CEO
    (403) 269-5218
    or
    Caribou Resources Corp.
    Ross Robertson
    President & COO
    (403) 269-5218
    or
    Caribou Resources Corp.
    Suite 1545, 101 -6th Ave SW,
    Calgary, Alberta T2P 3P4