Grey Wolf Exploration Inc.

Grey Wolf Exploration Inc.

November 15, 2005 16:27 ET

Grey Wolf Expands 2005 Capital Expenditure Program to $38 Million and Announces 2006 Capital Program of $55 Million

CALGARY, ALBERTA--(CCNMatthews - Nov. 15, 2005) - The Board of Directors of Grey Wolf Exploration Inc. (TSX:GWE) ("Grey Wolf") is pleased to announce that it has authorized increased 2005 capital spending to a total of $38 million from the previously approved $32 million. The revised expenditures consist of drilling 23 gross (17.5 net) wells and the recompletion of 14 gross (11.3 net) wells during 2005, as well as covering cost overruns and escalating costs of third party services.

For 2006, Capital Expenditures of $55 million are planned. This aggressive program represents a 45 percent increase over 2005 and demonstrates our ability to add to our portfolio of drilling opportunities. During the year, plans include the drilling of a total 33 gross (21.7 net) wells, the recompletion of 2 gross (0.8 net) wells and the pursuit of strategic property acquisitions. A total of $49.6 million has been allocated to drilling, completions and facility expenditures consisting of 6 gross (3.0 net) wells in the Caroline area, 4 gross (4.0 net) wells in the Knopcik area, 12 gross (6.4 net) wells in the Pouce Coupe area, 7 gross (6.0 net) wells in the Valhalla area, 2 gross (2.0 net) wells in the Widewater area and 2 gross (0.3 net) wells in the Ladyfern area.

"During 2006, we will continue to add to our reserve base of high quality, liquids-rich natural gas and light crude oil that consistently delivers top quartile netbacks and secures long-term cash flow. We are forecasting Grey Wolf's 2006 average daily production to be in excess of 3,200 boe per day" stated Robert L. G. Watson, Chairman and Chief Executive Officer of the Company. "Our 2005 activities have increased our portfolio of internally-generated investment opportunities and combined with our financial strength, Grey Wolf is well positioned to continue to deliver healthy growth to its shareholders."

Selected 2006 Forecast Data:

- Average daily production volume per day In excess of 3,200 boe
- Average corporate royalty rate 22.5 percent
- Lease operating expenses of approximately $5.30 per boe
- General and administrative expenses of
approximately $2.45 per boe
- 2006 common shares - basic (000's) 30,802
- Grey Wolf price differential off Edmonton Posting: crude - $1.25 per
barrel and natural gas - AECO less $0.17 per MMBTU (average heating
value 1,125 BTU per scf)

The calculation of barrels of oil equivalent ("boe") is based on a
conversion ratio of six thousand cubic feet of natural gas to one barrel
of oil to estimate relative energy content and does not represent a
value equivalency - boes may be misleading, particularly if used in

Grey Wolf is an independent 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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