Expedition Energy Inc.
TSX VENTURE : XPD

Expedition Energy Inc.

May 30, 2005 16:03 ET

Expedition Announces 1st Quarter 2005 Financial Information and advancement to Tier One on the TSX-V

CALGARY, ALBERTA--(CCNMatthews - May 30, 2005) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or "Company") announces that the Corporation's First Quarter 2005 Financial Statements along with the required Management Certification has been filed with the appropriate Canadian Securities Authorities.

Revenues increased in the first quarter to $313,758 compared to $94,976 in Q1 2004. Funds from operations increased to $40,659 compared $66,927 funds used in operations in Q1, 2004. Net loss for the period was $71,934 as compared to a loss in Q1 2004 of $89,546. Operating costs have improved to $12.77 per boe as compared to $17.43 per boe in Q1 2004.

The full report is available for viewing on the SEDAR web site at http://www.sedar.com.

Corporately the Company has now met the Tier One classification requirements of the TSX-Venture Exchange as announced in the May 12, 2005 Exchange Bulletin.

First Quarter and ongoing operations:

During the first quarter the company drilled two wells and commenced drilling of a third. In early January the company participated to a 20% WI in a deep well at Deanne AB. resulting in a cased well which will be tested in the third quarter as ground conditions are currently very wet and road improvements by the forestry company who owns the road are necessary. This well will be testing two prospective zones for gas production.

At Loverna SK. a shallow Viking well (42% WI) was drilled in early March and the completion is currently underway.

The third well is the company's Ferrier prospect (50% WI) which finished drilling in mid April, 2005. The well was cased for multiple horizons and as weather permits completion and testing will begin immediately. Typically initial production from these wells range from 1-2 million cubic feet per day, results from all testing will be announced as it becomes available.

Results for the first quarter reflect ongoing improvements as average production increased to 117 boepd as compared to 71 boepd in Q4 2004 and 35 boepd in Q1 2004, with March production averaging 161 boepd and productive capacity of 275 boepd.

This further capacity is from Nevis AB. (CBM) approximately 75 boepd to be on stream near the end of May 2005 and Three Hills AB which at the time of writing has just begun production at 23 boepd (140 mcfpd) net. Current production is approximately 200 boepd.

Drilling operations will continue in Q2 with two wells, a horizontal heavy oil well (50% WI) at Kerrobert Sk. and an exploratory well (55% WI) at Medicine Hat AB.

As well some personnel additions and changes have been made; Neil Burrows CMA has joined the management team as Chief Financial Officer. Mr. Burrows comes to Expedition with 19 years of accounting and management experience in roles of increasing responsibility with both private and public companies, most recently Controller reporting to the President at Addison Energy Inc. Mr. Burrows will be replacing Jim Rice on a full time basis effective June 1, 2005.

Tom Donaghy M.Sc., P. Geol. has also join the Management team as Vice-President of Exploration and Development effective June 13, 2005. Mr. Donaghy has 28 years of technical and managerial experience in the Western Canadian Basin and will assist in leading the company's growth. Mr. Donaghy was most recently at Viking Energy Royalty Trust as Manager of Geology & Geophysics and will be replacing Greg Dyble who resigned in early May.

At this time the company would like to thank both Mr. Rice and Mr. Dyble for their contribution to our growth to this point and wish them well in their future endeavours.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Expedition Energy Inc.
    Scott St. John
    President and CEO
    (403) 264-1699
    or
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    (403) 264-1699
    (403) 264-1499 (FAX)
    Website: http://www.xpdenergy.com