Detector Exploration Ltd.

February 25, 2005 18:45 ET

Detector to Acquire Assets from Bigstick Energy Ltd.


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: DETECTOR EXPLORATION LTD.

TSX VENTURE SYMBOL: DEX

FEBRUARY 25, 2005 - 18:45 ET

Detector to Acquire Assets from Bigstick Energy Ltd.

CALGARY, ALBERTA--(CCNMatthews - Feb. 25, 2005) - (Related Party
Transaction)

Detector Exploration Ltd. (TSX VENTURE:DEX) ("Detector") announces that
Detector is seeking approval from TSX Venture Exchange Inc. to complete
an acquisition of oil & gas assets in the Ribstone area from Bigstick
Energy Ltd. ("Bigstick"). The transaction is a 100% cash purchase. TSX-V
approval is required because the acquisition is a "related party
transaction" under TSX-V policies. Three of principal shareholders of
Bigstick holding collectively 75% of the shares of Bigstick are Ronald
E. Alexander (a director and the largest shareholder of Detector),
Edward A. James (a director and the second largest shareholder of
Detector), and Sonova Resources Ltd., a holding corporation of Stephen
N. Ewaskiw (a director of Detector). The principal terms of the Bigstick
acquisition are as follows:

(a) the purchase price is $90,000 (payable all in cash) with an
adjustment date of January 1, 2005;

(b) the assets involved are in the Ribstone area of Alberta, comprise a
total of 640 gross acres, 64 net acres and involve a working interests
of 10%;

(c) the assets include interests in 1 producing gas well;

(d) pending receipt of TSX-V approvals, the closing of the transaction
is expected to occur in early March, 2005;

Detector already holds an 40% working interest in these assets so the
acquisition will increase Detector's interest to a total of 50%.

As each of Ronald E. Alexander, Edward A. James and Stephen N. Ewaskiw
is a director, officer and/or significant shareholder of Detector and is
a director and shareholder (directly or indirectly) of Bigstick (the
"Related Party"), the purchase of the assets from Bigstick is a "related
party transaction" within the meaning of OSC Rule 61-501 (incorporated
by reference into TSX-V Policy 5.9). As a related party transaction, the
following additional disclosures are provided as required by Section 5.2
of Rule 61-501.

The purpose of the Bigstick acquisition issue from the perspective of
Detector is to provide Detector with additional cash flow. Since the
properties are currently producing an immediate increase in monthly net
cash flow (based on current oil & gas prices) of approximately $5,000.00
per month is expected.

The present values (discounted estimated future cash flows - proved &
probable reserves) attributed to a 10% interest in the assets being
acquired (extrapolating from Detector's 40% interest) has been
calculated as of December 31, 2004 by an independent engineering reserve
report to be as follows:



Net Present Value of Estimated Cash Flows:
----------------------------------------------------
Discounted at an Forecast Pricing
Annual Rate of: Model
---------------- -----------------
0% $163,500
5% $149,925
10% $138,375
15% $128,475
20% $119,950


A constant pricing model calculation was not done. Given that the
forecast pricing models forecast a decline in prices from current
prices, the constant pricing models would have yielded higher net
present value calculations. The calculated present values of estimated
future cash flows do not necessarily reflect fair market value.

The review and approval process that has been adopted by Detector for
this transaction is as follows:

a) the Board of Directors of Detector has already approved the purchase
and the distribution of this press release announcing the acquisition;

b) execution of a sale agreement is not expected to occur until TSX-V
approval is obtained;

c) Detector has determined that distribution of an information circular
to shareholders, preparation and distribution of a formal valuation and
seeking of Detector shareholder approval of the Bigstick acquisition is
not necessary under OSC Policy 61-501 (including TSX-V policy 5.9 which
incorporates such policy by reference) because the transaction size of
the acquisition is less than 25% of Detector's market capitalization.

d) completion of the Bigstick acquisition will be subject to receipt of
final TSX-V approval.

The proposed closing date for purchase from Bigstick is scheduled to
close as soon as TSX Venture Exchange approval is obtained (which is
likely to be less than 21 days after the distribution of this press
release). Since Detector has determined that the proposed transaction is
exempt from the time consuming aspects of OSC Policy 61-501 (i.e.
preparation of valuations and distribution of proxy materials to
shareholders for shareholder approval), the time remaining until the
proposed closing date should represent a reasonable amount of time for
Detector to complete the transaction.

Detector is an oil and gas corporation whose shares are listed for
trading on TSX Venture Exchange Inc. under the symbol DEX.

As of February 25, 2005 Detector has outstanding 9,288,701 Common Shares
and 580,000 options to acquire Common Shares. Detector's "public float"
(total shares outstanding less those held by directors, officers and 10%
shareholders and associates) has been calculated by Detector to be
2,826,730 shares.

The officer responsible for issuance of this press release and who may
be contacted for further information is:

CAUTIONARY STATEMENT:

No stock exchange, securities commission or other regulatory authority
has approved or disapproved the information contained herein. This news
release includes certain "forward-looking statements". All statements
other than statements of historical fact included in this news release,
including, without limitation, statements regarding reserves, present
value of future cash flow, exploration results, and future plans and
objectives of Detector, are forward looking statements that involve
various risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and actual results and future
events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from Detector's expectations are exploration risks,
production risks and pricing risks detailed herein and from time to time
in other filings made by Detector with securities regulators.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Detector Exploration Ltd.
    Ronald E. Alexander
    President
    (403) 264-1880
    (403) 265-9105 (FAX)
    or
    Detector Exploration Ltd.
    Suite 1100, 520 - 5th Avenue S.W.
    Calgary, Alberta, T2P 3R7
    Email: detectorex@shaw.ca