Desmarais Energy Corporation

March 20, 2008 16:19 ET

Desmarais Announces Reserve Summary, Land Evaluation

CALGARY, ALBERTA--(Marketwire - March 20, 2008) - Desmarais Energy Corporation (TSX VENTURE:DES) ("Desmarais" or the "Company") has filed its Statement of Reserves Data and Other Oil and Gas Information pursuant to National Instrument 51-101. The results of the evaluation of the P&NG Reserves of Desmarais as at December 31, 2007, and conducted by Fekete Associates Inc., estimates the net present value of the future net revenue before income taxes, using a 10% discount rate and using forecast prices and costs, at $5.964 million. Total proved plus probable reserves before royalty consists of 52.3 Mbbls oil and NGL's and 2,641 Mmcf natural gas, or 492.5 MBoe using a conversion ratio of 6 mcf to 1 Boe.

Desmarais has operations in two concentrated core areas: Southeast Alberta, and West Central Alberta. The Company operates approximately 70% of its production base. In Southeast Alberta, Desmarais has producing properties and undeveloped lands at Berry, Cessford, Connorsville, Jenner, Leckie and Medicine Hat. The properties are developed by eighteen (18) producing gas wells with an average working interest of 26.2% (4.7 net wells).

Desmarais has invested in both undeveloped lands and seismic (2D and 3D) in the development of our West Central Alberta core areas. These include producing properties and undeveloped lands at Barrhead, Bigoray, Neerlandia, South Swan Hills, and West Bigoray. In total, these West Central Alberta properties are developed by eight (8) producing gas wells with an average working interest of 71.0% (5.7 net wells). Immediate up-side potential is to be achieved through completion/re-completion and tie-in of 5 shut-in wells, all of which are Desmarais-operated, with a 95% working interest. The Company's largest land holdings are at Barrhead, where an average 92.5% working interest has been accumulated in more than 8,800 net acres of crown leases. The area target is multi-zoned liquids-rich natural gas in the Belly River sandstones, Viking, Upper and Lower Mannville sands, Ellerslie, Detrital, Banff and Nisku formations. The Company also owns a strategic 100% interest in 12.5 kilometers pipeline and gathering system at Barrhead.

Desmarais has contracted Seaton-Jordan & Associates Ltd., Mineral Management Consultants, to prepare an evaluation of the non-reserve oil and gas properties as at December 31, 2007. The result of this assessment of the fair value for Desmarais Energy Corporation lands is $1.712 million, based on our interests in 4,286.4 net hectares (10,716 net acres). The Corporation's investment in 2D and 3D seismic, at cost is $0.795 million. This information is provided in order to give shareholders a better understanding of the current underlying value of the Corporation. Details of the reserve report can be found at

The Corporation has filed on Sedar its Annual Information Form dated March 20, 2008 respecting the 2007 fiscal year.

The Corporation's Annual General Meeting of shareholders has been scheduled for June 4, 2008 at 3:00 p.m.


Certain statements regarding Desmarais include management's assessments of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Desmarais' control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements.

Such factors include, but are not limited to: the impact of general economic conditions in Canada and the United States; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced; competition; the lack of availability of qualified personnel; fluctuations in commodity prices; the results of exploration and development drilling and related activities; imprecision in reserve estimates; the production and growth potential of Desmarais' various assets; fluctuations in foreign exchange or interest rates; the ability to access sufficient capital from internal and external sources; and obtaining required approvals of regulatory authorities.

Accordingly, Desmarais gives no assurance nor makes any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward looking statements. Desmarais undertakes no obligation to publicly update or revise any forward-looking statements.

The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.

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