Expedition Energy Inc.

Expedition Energy Inc.

March 28, 2005 09:15 ET

Expedition Energy Inc.: News Release


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: EXPEDITION ENERGY INC.

TSX VENTURE SYMBOL: XPD

MARCH 28, 2005 - 09:15 ET

Expedition Energy Inc.: News Release

CALGARY, ALBERTA--(CCNMatthews - March 28, 2005) - Expedition Energy
Inc. ("Expedition" or the "Company")(TSX VENTURE:XPD) is please to
announce the results of its 2004 year-end reserve evaluation as prepared
by Gilbert Laustsen Jung Associates Ltd. ("GLJ"). (All dollar amounts
are expressed as Canadian funds)

Highlights

- Proved plus probable reserves increased by 571% to 679 thousand
barrels of oil equivalent (mboe) from 118.9 mboe, and proved reserves
increased by 555% to 497 mboe from 89.6 mboe when compared with December
31, 2003 reserves report.

- Replaced 2004 production by 3100% on a proved plus probable basis and
2254% on proved reserves.

- All of Expedition's reserve growth in 2004 was achieved through
exploration and development drilling. Proved plus probable finding &
development costs were $8.18 per boe and proved finding & development
costs were $11.25 per boe, based on an unaudited estimate of 2004
capital costs of $4,584,000.

- The Company's net present value of proved plus probable reserves
discounted at 10% is $8,970,000 (an increase of 744% over 2003 values)
with a reserve life index of 7.4 years. On proved reserves the net
present value at discounted at 10% is $7,273,000 (an increase of 720%
over 2003 values) with a reserve life index of 5.5 years.

- Approximately 82% of Expedition's proved reserves are natural gas, 8%
are light/medium oil & NGL's, and 10% are heavy oil.

Reserves

The independent reserve evaluation has been prepared by GLJ in
accordance with reserve definitions, standards and procedures contained
in the Canadian Oil and Gas Evaluation Handbook and adhere to the
Canadian Securities Administrators National Instrument 51-101 (NI
51-101). The year-end reserves for 2004 and 2003 presented herein
include the Company's working interests before royalties and use
forecast price assumptions. Where reserve volumes are expressed on a
barrel of oil equivalent (boe) basis, gas volumes have been converted to
boe at 6,000 cubic feet per barrel (6 mcf/bbl).



RESERVE SUMMARY - Forecast Prices and Costs

As at December 31 (1) 2004 2003

Oil & Oil Oil
NGL Gas Equiv. Equiv. Percent
(mbbls) (mmcf) (mboe) (mboe) Change
--------------------------------------------
Proved
- Developed Producing 75 754 200 16.1 1242%
- Developed Non-Producing 12 1710 297 59.0 503%
- Undeveloped 0 0 0 14.4 N/A
--------------------------------------------
Total Proved 87 2464 497 89.6 555%

Probable 40 853 182 29.3 621%
--------------------------------------------

Proved plus probable 126 3317 679 118.9 571%

(1) Due to rounding, some columns may not add precisely



NET PRESENT VALUE OF RESERVES - Forecast Prices and Costs

As at December 31, 2004 (1)
Discounted at
--------------------------------------------
0% 5% 8% 10% 12%
($000s) ($000s) ($000s) ($000s) ($000s)
Proved
- Developed Producing 4,237 3,554 3,259 3,095 2,951
- Developed Non-Producing 6,249 5,028 4,484 4,178 3,908
- Undeveloped 0 0 0 0 0
--------------------------------------------
Total Proved 10,486 8,581 7,743 7,273 6,859

Probable 4,288 2,542 1,971 1,698 1,482
--------------------------------------------

Proved plus probable 14,774 11,123 9,714 8,970 8,341

(1) Due to rounding, some columns may not add precisely


Operations Up-date

In Q1 2005 the Company tied in four coal bed methane (CBM) gas wells at
Nevis AB. These were brought on-stream in late February and are
currently producing at a restricted rate of approximately 500 mcf/d. The
plant operator is currently adding more compression to the facility to
allow the Nevis wells to produce at full capacity.

The Company participated in drilling a non-operated deep well in the
Deanne area of West Central AB (net 20% interest). The well is now
standing cased and completion / testing of this well is expected to
begin in Q2. Also in West Central AB, drilling has commenced on an
operated 50% working interest well, Ferrier 3-12-40-9W5M.

At Three Hills AB, operations are underway to tie in the 8-24 well which
was drilled in late December 2004. Expedition is hoping to have this
well tied in prior to spring break-up. It is expected that this well
will initially add 25 boepd net. The Company has plans for 2-3 other
wells at Three Hills this year.

In West Central SK, the Company has a 50% WI in a heavy oil development
well drilled in Q4 2004 which is currently producing 50 bbls/d net. Two
locations have been surveyed and drilling is being planned for Q2 and
Q3. Also, a shallow Viking oil well was drilled in early March and the
completion and testing operations will begin shortly.

In Southern Alberta, Expedition continues to build a land base and
currently has three exploration prospects in this area. Plans are in
place to drill at least one well this summer.

Current corporate production is approximately 175 boepd, with another
100 boe/d behind pipe at Nevis AB and Three Hills AB which is expected
to be on in the next six weeks.

The Board of Directors has approved the 2005 budget which includes
$6,990,000 to be expended on drilling 10 to 11 wells, completions,
facilities, seismic and land.

More detailed financial results will be released as the 2004 audit is
completed, the annual report will be mailed to shareholders on or before
April 29, 2005 the appropriate SEDAR filings containing Reserve and
financial information will also be filed on or before April 29, 2005.

Expedition continues to follow its strategy of internally developing
prospects, securing land in core areas, and growing predominantly
through drilling. Selective acquisitions that support core area growth
are also considered. The company strives to maintain a high working
interest and operate properties.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Expedition Energy Inc.
    Scott St. John
    President and CEO
    (403) 264-1699
    (403) 264-1499 (FAX)
    or
    Expedition Energy Inc.
    710, 540 - 5th Avenue S.W.
    Calgary, Alberta T2P OM2
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.