Expedition Energy Inc.

Expedition Energy Inc.

August 29, 2005 09:30 ET

Expedition Announces Second Quarter 2005 Financial Information and Operations Up-date

CALGARY, ALBERTA--(CCNMatthews - Aug. 29, 2005) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or "Corporation") announces that the Corporation's second quarter 2005 Financial Statements together with the related management's discussion and analysis have been filed.

- June 2005 production increased to 225 boe/d, current production is approximately 400 boe/d.

- Q2 average production increased to 171 boe/d as compared to 41 boe/d in Q2 2004 and a 46% increase over Q1 2005 of 117 boe/d.

- Revenues increased in Q2 to $552,027 compared to $110,217 in Q2 2004.

- Cash flow increased to $153,546 compared to a loss of $58,069 in Q2, 2004.

- Earnings of $16,242 in Q2 compared to a loss $109,650 in the same period in 2004.

The full Financial Report and MD&A are available for viewing on the SEDAR website under the company's profile at www.sedar.com.

Second Quarter and ongoing operations:

The Company's second quarter reflects ongoing improvements as average production increased to 171 boe/d as compared to 41 boe/d in Q2 2004 and 117 boepd in Q1 2005. June 2005 production averaged 225 boe/d. Current production from all areas is approximately 400 boe/d. 75% Gas, 13% Light oil & Ngls, 12% Heavy oil.

During the second quarter the corporation finished drilling one well at Ferrier AB. In early May the Three Hills Creek well drilled late in Q4 2004 was tied-in. Completion, equipping and tie-in operations at Ferrier and Loverna SK were initiated in June.

At ThreeHills AB the 8-24 well was tied-in and put on stream at 25 boe/d bringing area production to 40 boe/d net.

At Ferrier AB drilling finished in mid April, the well was completed, equipped and tied-in during June and July. Early production rates are as expected and are included in the corporate total. Further Q4 drilling is planned in the area.

Nevis AB production increased as gas plant space became available. June production was 100 boe/d and is currently 130 boe/d net to the company which is plant restricted from time to time. As current well production has stabilized stage two drilling and further compression additions are planned for Q4.

In West-Central SK the 1-14 Loverna SK well looks to be a low rate oil well, the Corporation is presently reviewing options and future opportunities in this area. At Kerrobert SK b5-31 (drilled in 2004) is performing well as production has remained at 45 bbsl/d net since coming on stream in mid December 2004.

Planned drilling operations were delayed in June as wet conditions and consequently rig availability have disrupted the entire industry; however drilling is expected to be underway in early September at Kerrobert SK and Medicine Hat AB. The Corporation presently has 12 (8.55 net) locations (11 development and one exploratory) to drill prior to year end as further financing and rigs are secured.

The term barrels of oil equivalent or boe may be misleading, particularly if used in isolation. The boe conversion ratio used by Expedition of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All boe conversions herein are derived by converting gas to oil in the ratio of six thousand cubic feet of gas to one barrel of oil.

Expedition Energy Inc. is an emerging Alberta based public corporation actively engaged in the exploration, development, acquisition and production of crude oil and natural gas in Western Canada. Expedition's shares are listed for trading on the TSX Venture Exchange under the symbol XPD.

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
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    (403) 264-1699
    (403) 264-1499 (FAX)
    Website: www.xpdenergy.com
    QIS Capital Corp.
    Doren Quinton
    Investor Relations
    (250) 376-8989
    Email: info@qiscapital.com