March 24, 2005 15:06 ET

For the Quarter Ended January 31, 2005 OLCO Reports an After-tax Profit of $1.2 Million




MARCH 24, 2005 - 15:06 ET

For the Quarter Ended January 31, 2005 OLCO Reports an
After-tax Profit of $1.2 Million

MONTREAL, QUEBEC--(CCNMatthews - March 24, 2005) - The OLCO petroleum
Group Inc (OLCO) (TSX VENTURE:OLC.A) is releasing its consolidated
financial results for the 3rd Quarter of its Fiscal year 2005, ended
January 31st 2005.

For the third quarter of this year, the company is reporting after tax
earnings of approximately $1.2 million , which includes the one time
price adjustment of product sold to a major customer, compared to a loss
of $446,000 for the corresponding quarter of fiscal 2004 with total
consolidated sales of $168 million compared to $143 million last year.
This 17.5% increase in company sales is a reflection of the increase in
product prices achieved in the market place since volumes remained
essentially flat during the period.

For the first nine months of this fiscal year, OLCO has registered a net
profit of $361,000 or $0.0253 per Class A share compared to a net loss
of approximately $600,000 or $0.0418 per Class A share of the company
for the same period last year. At January 31, 2005, there were
14,265,114 Class A shares outstanding.

While gross margins were slightly lower as cost of product increased
during the period, following the trend set by the prices of crude oil,
earnings before depreciation and taxes amounted to $2.2 million compared
to $337,000 during the same quarter of last year a five fold increase,
largely the result of a substantial reduction in operating, selling and
administrative expenses following the completion of a distributorship
agreement entered into with Global Fuels Inc. during the fall of 2004.

The transfer of OLCO's retail division and subsequent reorganization
explains in most part the differences between the corporate results of
the third quarter and those of the second quarter ended October 31st
2004 when OLCO reported a $903,000 loss that included significant
severance payments and other restructuring expenses.

While OLCO is converting to a pure wholesaler of petroleum products and
management of its retail operations is being contracted out, retail
marketing overhead and service station support is similarly being phased
out. Thus selling and administration expenses for the first nine months
of the year amount to $5.0 million compared to approximately $10.0
million for the corresponding period of last year.

Going forward, OLCO will still supply its retail network by virtue of
the supply arrangements with Global Fuels Inc. and will keep supplying
its other commercial, industrial and institutional customers, both
domestically and on the export market. In the process it is always
seeking better pricing arrangements with its own suppliers of product to
offset the volatility of margins and alleviate its short term working
capital deficiency.

While Canterm, a 50% subsidiary of OLCO , is almost at the breakeven
point at the end of December 2004, it will start contributing to OLCO's
bottom line in 2005 as major terminaling agreements are now being
implemented and Canterm is becoming self supporting, thus exerting less
pressure on OLCO's cash flow.

Canterm's development will, in the future, be funded through it's own
cash generated from operations and credit arrangements.

Certain sections of this management discussion and analysis contain
forward looking statements. Such statements based on current
expectations of management, inherently involve risks and uncertainties
known and unknown. Actual future results may therefore differ.

Additional information on OLCO may be found on SEDAR web site


Mark S. Kaneb

President and Chief Operating Officer


Contact Information

    OLCO Petroleum Group Inc.
    Despina Levantis
    (514) 645-6526
    (514) 645-8048 (FAX)