Expedition Energy Inc.

Expedition Energy Inc.

January 16, 2006 18:07 ET

Expedition Energy Inc.- Operations Update

CALGARY, ALBERTA--(CCNMatthews - Jan. 16, 2006) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or "the Company") is pleased to provide an operations update to year end 2005, and planned activity in Q1 2006.

During the fourth quarter 9 wells were drilled bringing the yearly total to 14 wells (9.6 net) as planned by the Company. This drilling has resulted in 9 gas wells (7.5 net), 4 oil wells (1.6 net) and one dry and abandoned (.5 net), for a success rate of 93%.

At Nevis Alberta four CBM wells and at Kerrobert Saskatchewan one heavy oil well were completed and tied-in by year end bringing current production to approximately 520 Boepd (weighted 65 % Gas and 35 % Oil & NGLs). Two Belly River zones from dually completed wells at Nevis are currently being tied-in, which will add approximately 40 Boepd over the next ten days.

In addition to the production adds at Nevis and Kerrobert, further completions and tie-in operations continue at other locations drilled in Q4 2005 and will add approximately 140 Boepd later in Q1 and early Q2 of this year. As well, the Company plans to drill 2 wells in Q1 as we strive toward our 2006 exit production rate of 1000 Boepd.

This will be a key year in the growth of the Company as we focus on expanding our land base in existing areas and opening up new prospects in north western Alberta. We will update shareholders on further 2006 budget plans and operations over the coming weeks as information becomes available.

This information contains forward-looking statements (forecasts) under applicable securities laws. Forward-looking statements are necessarily based upon assumptions and judgments with respect to the future including, but not limited to, the outlook for commodity markets and capital markets, the performance of producing wells and reservoirs, and the regulatory and legal environment. Many of these factors can be difficult to predict. As a result, the forward-looking statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. 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 and production of crude oil and natural gas in Western Canada. The Company 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. 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
    (403) 264-1499 (FAX)
    QIS Capital Corp.
    Doren Quinton
    Investor Relations
    Email info@qiscapital.com
    Expedition Energy Inc.
    725, 435 - 4th Avenue S.W.
    Calgary, Alberta T2P 3A8
    Website: www.xpdenergy.com