Flowing Energy Corporation

Flowing Energy Corporation

March 24, 2005 09:12 ET

Flowing Announces 2004 Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: FLOWING ENERGY CORPORATION

TSX SYMBOL: FLO

MARCH 24, 2005 - 09:12 ET

Flowing Announces 2004 Results

CALGARY, ALBERTA--(CCNMatthews - March 24, 2005) - Flowing Energy
Corporation (TSX:FLO) announces its 2004 fourth quarter and year end
operating and financial results:



Three months ended December 31 %
2004 2003 Change
------------------------------------------------------------------------
Operating

Production
Oil and liquids (bbls per day) 2,108 1,504 40
Natural gas (mcf per day) 7,091 4,132 72
BOE (6:1) per day 3,289 2,193 50
Oil and liquids percentage of BOE 64% 69% (7)

Prices
Oil and liquids (bbls) $ 20.13 $ 21.48 (6)
Natural gas (mcf) $ 6.57 $ 5.34 23
Per BOE $ 27.06 $ 24.77 9

Netback ($ per boe) $ 15.69 $ 13.68 15


Financial

Revenue, net of royalties
and transportation $ 8,493,074 $ 4,047,152 110

Cash flow from operations $ 3,752,623 $ 2,214,659 69
Per share - basic $ 0.089 $ 0.070 27
- diluted $ 0.087 $ 0.066 32

Net earnings $ 1,297,610 $ 424,918 205
Per share - basic $ 0.031 $ 0.013 136
- diluted $ 0.030 $ 0.013 132

Working capital deficiency
(excluding bank debt) $ 4,777,694 $14,457,461 (67)
Bank debt $29,301,077 $ - N/A
Obligation under capital lease $ 2,013,188 $ 2,562,038 (21)

Capital expenditures $ 6,042,603 $23,640,443 (74)
Property disposition $ 8,785,860 $ - N/A

Shares
Weighted average - basic 42,373,667 31,671,801 34
- diluted 43,092,522 33,593,824 28
Outstanding 42,650,545 38,970,186 9
------------------------------------------------------------------------

Year ended December 31 %
2004 2003 Change
------------------------------------------------------------------------
Operating

Production
Oil and liquids (bbls per day) 2,487 734 239
Natural gas (mcf per day) 4,469 3,904 14
BOE (6:1) per day 3,232 1,384 133
Oil and liquids percentage of BOE 77% 53% 45

Prices
Oil and liquids (bbls) $ 24.93 $ 23.89 4
Natural gas (mcf) $ 6.49 $ 6.52 (1)
Per BOE $ 28.15 $ 31.06 (9)

Netback ($ per boe) $ 14.69 $ 18.37 (20)


Financial

Revenue, net of royalties
and transportation $26,930,130 $12,213,936 120

Cash flow from operations $13,629,069 $ 8,136,788 67
Per share - basic $ 0.330 $ 0.296 11
- diluted $ 0.324 $ 0.277 18

Net earnings $ 1,373,074 $ 2,466,099 (44)
Per share - basic $ 0.033 $ 0.090 (63)
- diluted $ 0.033 $ 0.084 (61)

Working capital deficiency
(excluding bank debt) $ 4,777,694 $14,457,461 (67)
Bank debt $29,301,077 $ - N/A
Obligation under capital lease $ 2,013,188 $ 2,562,038 (21)

Capital expenditures $48,899,790 $55,743,824 (12)
Property disposition $ 8,785,860 $ - N/A

Shares
Weighted average - basic 41,300,838 27,476,799 50
- diluted 42,019,693 29,398,822 43
Outstanding 42,650,545 38,970,186 9
------------------------------------------------------------------------


In the fourth quarter of 2004 Flowing drilled 8 wells (8.0 net) gas
wells. For the year ended December 31, 2004 the Corporation has drilled
67 wells (64.4 net) resulting in 41 oil wells (41.0 net), 25 gas wells
(22.4 net) and one water disposal well.

On February 25, 2005 Flowing closed the sale of its Monitor property for
gross proceeds of $16.65 million. The sale had an effective date of
January 1, 2005. Proceeds were used to discharge Flowing's $2.5 million
Monitor gas plant capital lease, with the balance applied to bank debt.
On March 7, 2005 Flowing's available revolving credit facility was set
by the bank at $20 million.

The Special Meeting of Flowing SecurityHolders, regarding the proposed
Plan of Arrangement involving Flowing and Daylight Energy Trust, will be
held at 10:00 am, Monday April 4, 2005, in the Cardium Room at the
Calgary Petroleum Club.

Flowing's audited financial statements for the year ended December
31,2004, Management's Discussion and Analysis and the Annual Information
Form for the year ended December 31, 2004 will be available on SEDAR at
www.sedar.com.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Flowing Energy Corporation
    Robert Bowman
    President & CEO
    (403) 777-4282
    (403) 543-9638 (FAX)
    Email: info@flowingonline.com
    or
    Flowing Energy Corporation
    Robert Kraft
    Chief Financial Officer
    (403) 777-4282
    (403) 543-9638 (FAX)
    Email: info@flowingonline.com
    Website: www.flowingonline.com