Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

March 29, 2005 11:08 ET

Grey Wolf Announces Underwriters' Intent to Exercise Over-allotment Option


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: GREY WOLF EXPLORATION INC.

TSX SYMBOL: GWE

MARCH 29, 2005 - 11:08 ET

Grey Wolf Announces Underwriters' Intent to Exercise
Over-allotment Option

CALGARY, ALBERTA--(CCNMatthews - March 29, 2005) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES

Grey Wolf Exploration Inc. (TSX:GWE) ("Grey Wolf") today announced that
in connection with its initial public offering ("IPO"), the Underwriters
have declared their intent to exercise 3.5 million shares of the
over-allotment option. The over-allotment option was granted to the
underwriters by Grey Wolf's former sole shareholder, Abraxas Petroleum
Corporation ("Abraxas") on a secondary basis, therefore, Grey Wolf will
not receive any of the proceeds from the exercise of the over-allotment
option. After the exercise, Abraxas will hold approximately 400,000
common shares of Grey Wolf.

The IPO was led by CIBC World Markets Inc. on behalf of a syndicate of
underwriters that included BMO Nesbitt Burns Inc., GMP Securities Ltd.
and Canaccord Capital Corporation (collectively the "Underwriters").

Grey Wolf is an Alberta-based, junior oil and natural gas company
involved in the development and production of natural gas and crude oil
in the Western Canadian Sedimentary Basin. Its common shares trade on
the Toronto Stock Exchange under the symbol "GWE".

Forward-Looking Statements - Certain information set forth in this
document, including management's assessment of Grey Wolf's future plans
and operations, contains forward-looking statements. By their nature,
forward-looking statements are subject to numerous risks and
uncertainties, some of which are beyond Grey Wolf's control, including
the impact of general economic conditions, industry conditions,
volatility of commodity prices, currency fluctuations, imprecision of
reserve estimates, environmental risks, competition from other industry
participants, the lack of availability of qualified personnel or
management, stock market volatility and ability to access sufficient
capital from internal and external sources. Readers are cautioned that
the assumptions used in the preparation of such information, although
considered reasonable at the time of preparation, may prove to be
imprecise and, as such, undue reliance should not be placed on
forward-looking statements. Grey Wolf's actual results, performance or
achievement could differ materially from those expressed in, or implied
by, these forward-looking statements. No assurance can be given that any
of the events anticipated will transpire or occur, or if any of them do
so, what benefits Grey Wolf will derive from them. Grey Wolf disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Grey Wolf Exploration Inc.
    Dawne L. Stirling
    Manager, Investor Relations and Corporate Secretary
    (403) 218-1473
    Email: dstirling@greywolf.ca