International Sovereign Energy Corp.

International Sovereign Energy Corp.

March 24, 2005 17:51 ET

International Sovereign Year-End 2004 Results


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: INTERNATIONAL SOVEREIGN ENERGY CORP.

TSX SYMBOL: ISR

MARCH 24, 2005 - 17:51 ET

International Sovereign Year-End 2004 Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 24, 2005) -
International Sovereign Energy Corp. (TSX:ISR) (the "Company") reports
on its financial results for the year ending December 31, 2004. Revenues
for the period were $7,109,199, a decrease of some 11% from the 2003
level of $7,977,939. Average production over the year decreased from 705
boe/d in 2003 to 538 boe/d in 2004. As previously reported, the major
contributing factor to the 2004 decline was the watering out of GP
Production in the Marwayne heavy oil field in March and April of 2004.
The primary contributing factor to revenues declining at a lesser rate
than production was the increase in the price of oil and gas received
during 2004. Total capital expenditures in the year 2004 were
approximately $5.0 million versus from the December 31, 2003 total of
some $4.5 million. Cash flow from operations was $3,059,782, down some
19% from $3,769,573 for the year 2003.

Despite the Marwayne heavy oil loss, the Company advanced its strong
inventory of gas prospects in the Lacombe, Chigwell, Medicine River,
Little Bow and Sturgeon Lake areas of Alberta during 2004. A 75%
drilling program success rate on a gross well basis (61% net) was
achieved with six of eight wells drilled in 2004 being cased for
potential gas production. The net result was a 73% increase in the
Company's gas reserves resulting in a modest overall reserve increase in
2004 compared to 2003. Consequently, the Company's reserves split
changed to 24% heavy oil from 53% while gas reserves increase to 62%
compared to 36% in 2003.

Capital expenditures for presently identified domestic projects during
2005 is budgeted at some $4.2 million. As recently reported, the
expected potential additional net production through to Quarter Two,
2005 to the Company from the wells currently drilled is some 200 BOE/d.
Based on existing projects, the Company expects to exit 2005 at a 1,000
BOE/d plus production level. In addition, the Company continues to
develop new prospects in its current areas of interest as well as new
prospects such as Wizard Lake, Alberta where seismic and land
acquisition is proceeding.

As recently reported (News Release dated March 22, 2005) the Company
continues to advance its international initiatives in Ecuador and
Pakistan.

International Sovereign Energy Corp. is an oil and gas exploration
development and production company with offices in Vancouver, British
Columbia, Calgary, Alberta and Islamabad, Pakistan and is active in the
exploration and development of hydrocarbon reserves in Western Canada
and internationally.

For further information, please contact the Company at (604) 684-7372 or
visit the Company's web site at www.isove.com.

Shares Outstanding 11,323,818

Certain information provided in this press release contains
forward-looking statements that by their nature are subject to numerous
risks and uncertainties and readers are cautioned that actual results
may vary considerably from those forecasted.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    International Sovereign Energy Corp.
    Omair Choudhry
    Chief Financial Officer
    (604) 684-7372
    (604) 684-2407 (FAX)
    Website: www.isove.com
    The Toronto Stock Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.