Choice Resources Corp.
TSX VENTURE : CZE

Choice Resources Corp.

June 22, 2005 18:29 ET

Choice Announces Year End Reserves Increase

CALGARY, ALBERTA--(CCNMatthews - June 22, 2005) - Choice Resources Corp. (TSX VENTURE:CZE) of Calgary, Alberta is pleased to report on its year end reserves.

Reserves of the Corporation under National Instrument 51-101 as stated by Sproule Associates Limited on February 28, 2005 are 40.0 Bcf and 836 mbbl of associated liquids on a before-royalty basis. This compares to the March 1, 2004 reserves report, as completed by Sproule, of 33.8 Bcf and 966 mbbl of associated liquids on a risked basis. This represents a 20% increase on a boe basis before production and a 30% increase after production. Reserve replacement was 1.83 mm boe or 3.7 times the past year's production. The reserve life index is over 15 years on a proven plus probable basis at current production rates of approximately 1,350 boe/d. The increase in reserves is attributable to positive technical revisions, acquisitions and discoveries. More detail will be available in the NI 51-101 filings, expected shortly.

The associated values for proven plus probable on a risked basis are $61.3 million and $67.4 million discounted at 10% and 8% respectively before tax. This compares to a March 1, 2004 evaluation of $45.5 million proven plus probable discounted at 10% before tax. (greater than 34% increase).

On a constant dollar analysis the value for proven plus probable reserves is $77.7 million on a 10% discount before tax basis at February 28, 2005.

The Corporation's exploration strategies continue to evolve as we explore around existing core areas and develop new area farm-ins. The current large inventory of high impact plays is starting to pay dividends and bodes well for the future.

Choice is an Alberta-based natural gas producer, with production from three core areas in Viking, Bow Island and Pincher Creek. After the last equity transaction, as recently press released, the Corporation has 57.2 million shares outstanding. In addition as of this release the net debt including working capital is less than $10 million. The total net undeveloped land is also greater than 45,000 net acres.

Operationally, the Corporation is currently drilling 5 wells in the Viking area. Two have been cased and are being completed for gas. At Pincher creek the Corporation has entered into an option agreement with another company to take up to 30% of proposed horizontal development well costs in return for up to 15% after payout. Other discussions with third parties are continuing and are expected to be concluded shortly.

ON BEHALF OF THE BOARD OF DIRECTORS OF CHOICE RESOURCES CORP.

"Gordon D. Harris"

Gordon D. Harris

President & Director

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

Contact Information