Expedition Energy Inc.
TSX VENTURE : XPD

Expedition Energy Inc.

September 14, 2005 17:05 ET

Expedition Increases Reserves and Net Asset Value

CALGARY, ALBERTA--(CCNMatthews - Sept. 14, 2005) - Expedition Energy Inc. (TSX VENTURE:XPD) ("Expedition" or the "Company") is pleased to announce that it has engaged GLJ Petroleum Consultants Ltd. ("GLJ") to evaluate the Company's reserves effective September 1, 2005 as part of our interim reporting to shareholders. The GLJ report was prepared using GLJ's July 1, 2005 price forecast and the method and definitions set out under National Instrument 51-101 ("NI 51-101").



SUMMARY OF OIL AND GAS RESERVES
FORECAST PRICES AND COSTS
September 1, 2005

Reserves Light Oil Oil
Category & NGLs Heavy Oil Natural Gas Equivalent
------------------------------------------------------------------------
Gross Net Gross Net Gross Net Gross Net
(Mbbls)(Mbbls) (Mbbls)(Mbbls) (MMcf) (MMcf) (Mbbls)(Mbbls)

Proved
Developed
producing 79.3 53.0 50.0 41.0 3,998.0 3,331.0 796.0 650.0
Developed
non-
producing 1.0 1.0 0.0 0.0 82.0 53.0 15.0 10.0
------------------------------------------------------------------------
Total Proved 80.3 54.0 50.0 41.0 4,081.0 3,384.0 811.0 660.0

Probable 33.4 22.3 29.0 24.0 1,772.0 1,508.0 358.0 298.0
------------------------------------------------------------------------
Total
Proved plus
Probable 113.7 77.3 80.0 66.0 5,852.0 4,892.0 1,169.0 958.0
------------------------------------------------------------------------
------------------------------------------------------------------------

Columns and rows in all tables may not add due to rounding
Gross reserves refer to Company working interest reserves. Net reserves
refer to Company working interest reserves after deduction for crown,
freehold, and other royalties.


SUMMARY OF NET PRESENT VALUES OF FUTURE NET REVENUE
BEFORE INCOME TAXES INCLUDING ARTC
FORECAST PRICES AND COSTS

September 1, 2005

0% 5% 8% 10% 12%
Before tax
Present Value (M$) ($000's) ($000's) ($000's) ($000's) ($000's)
------------------------------------------------------------------------
Proved
Developed producing 20,867 16,127 14,281 13,300 12,466
Developed non-producing 296 204 168 148 132
------------------------------------------------------------------------
Total Proved 21,163 16,332 14,448 13,448 12,598

Probable 9,138 4,730 3,496 2,930 2,494
------------------------------------------------------------------------
Total Proved plus
Probable 30,301 21,062 17,944 16,378 15,092
------------------------------------------------------------------------
------------------------------------------------------------------------

As required by NI 51-101, well abandonment costs are included in the net
present value calculation


SUMMARY OF PRICING ASSUMPTIONS
FORECAST PRICES AND COSTS
GLJ July 1, 2005
Natural
WTI at Crude Oil Gas Alberta
Cushing Edmonton Ref. Heavy Oil Plant Gate
$US/bbl $Cdn/bbl $Cdn/bbl $Cdn/mmbtu
------------------------------------------------------------------------

Forecast Year
2005 Q3/Q4 55.00 66.00 35.50 7.40
2006 55.00 66.00 35.50 7.50
2007 52.00 62.75 34.75 7.10
2008 48.00 57.75 34.25 6.85
2009 45.00 54.25 34.00 6.55
2010 42.00 50.50 32.75 6.25
2011 40.00 48.00 31.25 6.25
2012 40.00 48.00 31.25 6.25
2013 40.75 49.00 32.00 6.40
2014 41.50 50.00 32.50 6.60
2015 42.50 51.00 33.25 6.75
------------------------------------------------------------------------
------------------------------------------------------------------------

Prices escalate 2% per year starting in the year 2016


SUMMARY OF NET PRESENT VALUES OF FUTURE NET REVENUE
BEFORE INCOME TAXES INCLUDING ARTC
CONSTANT PRICES AND COSTS
SEPTEMBER 1, 2005
0% 5% 8% 10% 12%
Before tax
Present Value (M$) ($000's) ($000's) ($000's) ($000's) ($000's)
------------------------------------------------------------------------
Proved
Developed producing 36,742 27,887 24,485 22,687 21,163
Developed non-producing 587 405 333 294 262
------------------------------------------------------------------------
Total Proved 37,329 28,292 24,818 22,981 21,425

Probable 15,768 8,713 6,638 5,667 4,908
------------------------------------------------------------------------
Total Proved plus
Probable 53,096 37,005 31,455 28,648 26,333
------------------------------------------------------------------------
------------------------------------------------------------------------

As required by NI 51-101, well abandonment costs are included in the net
present value calculation

The constant case assumes prices of Cdn $86.08/bbl for Edmonton
reference price for light sweet oil, Cdn $10.72/mcf for Alberta
plant-gate gas and Cdn $47.74/bbl for heavy oil at Hardisty, AB.


Results to September 1, 2005 represent a 72% increase in reserves to 1,169,000 boe compared to 679,000 boe at December 31, 2004 and corresponding 83% increase in proved plus probable 10% net present value of $16,378,000 compared to $8,970,000 at year end 2004.

With this new information management estimates Net Asset Value (NAV) to be $15,178,000 or $0.73/share (basic). The calculation includes GLJ September 1, 2005 report using the Net Present Value at 10% proved plus probable reserves, forecast pricing (July1, 2005), current total working capital debt, land and seismic.

Expedition is currently raising funds for ongoing operations as announced September 7, 2005 with agent Emerging Equities Inc.

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.

20,925,598 shares outstanding

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: www.xpdenergy.com
    or
    QIS Capital Corp.
    Doren Quinton
    Investor Relations
    (250) 376-8989
    Email: E-mail info@qiscapital.com