King Energy Inc.

September 20, 2005 09:15 ET

King Energy Inc. Announces Production Hedge

CALGARY, ALBERTA--(CCNMatthews - Sept. 20, 2005) - King Energy Inc. ("King") (TSX VENTURE:KNG) is pleased to announce that it has entered into a contract to hedge 125 BOED at a fixed price of US$64.65 for a period of 18 months. The contract is effective October 1, 2005.

The contract will generate approximately US$4.4MM in revenue over the next 18 months.

Roger Giovanetto, President & CEO of King stated, "Given current levels of pricing, King felt it prudent to lock in a certain amount of its production as a hedge against future price declines and to provide cash flow for the recently announced acquisition of our Provost property." he continued, "Should commodity prices increase, we will consider a further hedge as a measure of creating value for our shareholders."

King is a junior oil and gas company committed to creating shareholder value through internal growth and synergistic acquisitions.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • King Energy Inc.
    Roger Giovanetto
    President & CEO
    (403) 269-3372
    (403) 263-5529 (FAX)