King Energy Inc.

August 25, 2005 09:00 ET

King Energy Inc. Announces Strategic Property Acquisition

CALGARY, ALBERTA--(CCNMatthews - Aug. 25, 2005) - King Energy Inc. ("King") (TSX VENTURE:KNG) is pleased to announce that it has entered into an agreement with a senior Canadian oil and gas company to acquire a package of operated medium gravity oil properties strategically located in King's core operating area of Provost, Alberta for a total cash consideration of approximately $3.55MM, after certain closing adjustments (the "Acquisition").

The acquired assets comprise 172M BOE of proved reserves, and 349M BOE of proved plus probable reserves.

The purchase includes current production of approximately 90 BOE/d (80% oil), and strategic infrastructure including a processing plant (100% interest) and related gathering lines.

The Acquisition has an effective date of June 1, 2005, and is expected to close on or about August 31, 2005.

The Acquisition will be financed through increased lines of existing bank credit.

Roger Giovanetto, President & CEO of King stated, "This acquisition is strategic in that it exists within our core geographic area of Provost and represents an approximate increase of 55% to our daily production."

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
    fax: (403) 263-5529 (FAX)