Goose River Resources Ltd.

Goose River Resources Ltd.

March 18, 2005 09:00 ET

Goose River Releases Reserves And Operations Update


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GOOSE RIVER RESOURCES LTD.

TSX VENTURE SYMBOL: GRR

MARCH 18, 2005 - 09:00 ET

Goose River Releases Reserves And Operations Update

CALGARY, ALBERTA--(CCNMatthews - March 18, 2005) - NOT FOR DISTRIBUTION
TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE U.S.

Goose River Resources Ltd. (TSX VENTURE:GRR) is pleased to announce the
results of its updated reserve report prepared by Sproule Associates
Limited ("Sproule") as of February 28, 2005. The year end results which
were previously published in a press release dated February 23, 2005 did
not reflect the positive results of the drilling activity undertaken by
the Company in the last quarter of 2004.

Goose River conducted completion operations, followed by testing and
placing on production of certain of these wells in January and February,
2005 and the supplemental reserve report reflects these results. Overall
proved plus probable reserves increased by 14%, with the majority of
this increase being in the Total Proved category. Oil and gas reserves
at the Company operated Redwater project comprised the majority of this
increase in reserves (95%) and the remaining increases came from the
Bashaw gas project (5%).

RESERVE SUMMARY HIGHLIGHTS



- Proved plus Probable reserves at February 28, 2005 were 3,807.6
mboe (44% natural gas) compared to 3,349.5 mboe at December 31,
2004

- Total Proved reserves at year end were 2,145.9 mboe (45% natural
gas) compared to 1,483.8 mboe at December 31, 2004

- Net present value of future net revenue (based on forecast prices
and costs, before the deduction of income taxes, debt service
charges and general and administrative expense) discounted at 10
percent are:
a) $34,207,000 for Total Proved and
b) $54,441,000 for Total Proved plus Probable

- BOE Reserve Index is 7.9 years for Proved plus Probable reserves
and 5.3 years for Total Proved reserves


OPERATIONS UPDATES

At Redwater extremely cold weather during the months of January and
February resulted in operational downtime at the Goose River compressor
and at individual wells. Company production averaged 290 BOE/day in
January and 400 BOE/day in February 2005. The Company has responded to
these operational issues by the electrification of the well sites to
eliminate the need for gas engines, installed hydraulic pumping units
with increased gas handling characteristics, and hired full time
personnel to operate the wells. The Company has tied in three more
pipeline segments and has converted one well site to a satellite
facility. Final optimization and one additional pipeline tie in has been
delayed due to the unseasonably warm weather recently experienced in the
field. Production from the Redwater property has been restored to an
average 550 BOE/day net to the Company for the first half of March 2005
(600 BOE/day Company Total).

At Bashaw pipeline routing issues and the unseasonably warm weather in
early March has delayed the construction of the pipelines and well
facilities. The Company expects to resume work on these projects
immediately following spring break up. The Company expects an additional
1200 mscf/day (200 BOE/day) from the Bashaw area.

In February the Company and partners drilled two Horseshoe Canyon Coal
Bed Methane wells at Bashaw. Immediately following spring break-up the
Company plans to drill an additional 6 Ellerslie wells at Redwater, one
additional Belly River gas well and 4 additional Horseshoe Canyon Coal
Bed Methane wells at Bashaw. Reduced spacing in the Coal Bed Methane
zone is expected to provide for an additional 18 well locations.

All reserves information has been prepared in accordance with National
Instrument ("NI") 51-101. The Sproule report contains several cautionary
statements that are specifically required by NI 51-101. In addition to
the information disclosed in this press release, additional information
on the Company's reserves and other oil and gas information will be
included in the Company's "Statement of Reserve Data and Other Oil and
Gas Information" which can be viewed at www.sedar.com.

READER ADVISORY

The reserves referred to herein are the Company's interest before the
deduction of royalties.

BOE's may be misleading, particularly if used in isolation. In
accordance with National Instrument 51-101, a BOE conversion ratio for
natural gas of 6 mcf: 1 bbl has been used which is based on an energy
equivalency conversion method primarily applicable at the burner tip and
does not represent a value equivalency at the wellhead.

This press release may contain forward-looking statements including
expectations of future production, cash flow and earnings. These
statements are the based on current expectations that involve a number
of risks and uncertainties, which could cause actual results to differ
from those anticipated. These risks include, but are not limited to: the
risks associated with the oil and gas industry (e.g. operational risks
in development, exploration and production, delays or changes to plans
with respect to exploration or development projects or capital
expenditures; the uncertainty of reserve estimates; the uncertainty of
estimates and projects relating to production, costs and expenses, and
environmental risks), commodity price, price and exchange rate
fluctuation. The reader is further cautioned that estimating reserves
requires judgement and decisions based upon available geological,
geophysical, engineering and economic data. These estimates may change,
having either a positive or negative effect on the net earnings of the
Company as further information becomes available and as the economic
environment changes.

Additional information on these and other factors that could affect
Goose River Resources' operations or financial results are included in
Goose River Resources' reports file with Canadian securities regulatory
authorities that may be accessed at www.sedar.com.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Goose River Resources Ltd.
    Curtis A. Hartzler
    President
    (403) 263-4310
    or
    Goose River Resources Ltd.
    Leonard D. Arcovio
    Vice President, Finance
    (403) 263-4310
    info@gooseriver.ca
    www.gooseriver.ca
    The TSX Venture Exchange Inc. does not accept responsibility for the
    adequacy or accuracy of this release.