Endev Energy Inc.
TSX : ENE

Endev Energy Inc.

January 23, 2006 18:59 ET

Endev Energy Inc. Announces 2006 Capital Program

CALGARY, ALBERTA--(CCNMatthews - Jan. 23, 2006) - Endev Energy Inc. ("Endev")(TSX:ENE) is pleased to announce that it has established a base capital program of $50 million for 2006. In total, Endev plans to drill approximately 175 gross (135 net) wells in 2006.

The 2006 program represents a $15 million or 43 percent increase over the 2005 program. Approximately 75 percent of the funds will be spent on Endev's core shallow gas areas in Majorville and Drumheller. The Company will drill approximately 150 gross (120 net) shallow gas wells to further develop its Majorville and Drumheller areas. The remaining 25 percent, or $12 million of the budget, will be allocated to land, seismic and new ventures drilling. These new ventures include expanding the deeper Mannville drilling program in Majorville and Drumheller, the recompletion of existing well bores for the evaluation of CBM potential and other exploration drilling prospects from our opportunity inventory. Endev expects to fund the 2006 capital program entirely from internally generated cash flow assuming an average gas price of AECO $8.00/mcf and an average oil price of WTI US$50.00 per bbl. Our preliminary estimate of average annual production for 2006 is 4,600 boe/day. Endev is also preplanning logistics which will allow the Company to expand its development program later in 2006 should conditions be favorable.

Endev's plans for 2006 are a follow-up to our successful 2005 program. In 2005, Endev drilled a total of 146 gross (127 net) wells with a success rate of 96%. In Majorville, 128 gross (114 net) shallow gas wells were drilled and cased. Included in this total are eight successful wells of a pilot in-fill drilling program drilled from two pads. Completion and pipeline installation activity grew in the fourth quarter of 2005 and is continuing into the first quarter of 2006. At Drumheller, the Company drilled and cased five gross (4.5 net) shallow gas wells during the year.

During 2005, Endev began evaluating its extensive holdings in the deeper Mannville formation in Majorville and Drumheller. Eight gross (5.4 net) Mannville wells were drilled in 2005. Six of these wells have been cased for Mannville production, four for gas and two for oil, and are currently in various stages of completion, testing and tie in. A seventh well was cased for a shallower formation and one well was abandoned.

In other areas, Endev participated in drilling four gross (2.0 net) wells resulting in one potential gas well, one oil well and two wells abandoned.

To complement our organic growth through the drill bit and as part of our ongoing corporate strategy, we continue to actively pursue acquisitions which will enhance the Company's current asset base or provide potential new core areas for future growth. Endev has not budgeted funds for acquisitions but does have access to additional funds from its current cash flow and bank lines.

Endev is an oil and natural gas exploration, development and production company based in Calgary, Alberta. The Company's shares trade on the Toronto Stock Exchange under the symbol ENE.

Certain information regarding Endev Energy Inc. set forth in this document, including management's assessment of the Company's future plans and operations contains forward looking statements that involve substantial known and unknown risks and uncertainties. These forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's and management's control including, but not limited to, the impact of general economic conditions, industry conditions, fluctuation of commodity prices, fluctuation of foreign exchange rates, imperfection of reserve estimates, environmental risks, industry competition, availability of qualified personnel and management, stock market volatility, and timely and cost-effective access to sufficient capital from internal and external sources. Endev Energy's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and accordingly, no assurance can be given that any of the events anticipated to occur or transpire from the forward looking statements will provide what, if any, benefits to Endev Energy Inc.


The Toronto Stock Exchange has neither approved nor disapproved of the contents of this press release.

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