Kroes Energy Inc.

Kroes Energy Inc.

April 30, 2007 21:05 ET

Kroes Energy Announces 2006 Results

CALGARY, ALBERTA--(CCNMatthews - April 30, 2007) - Kroes Energy Inc. (TSX VENTURE:KRS) announced today that it's net earnings for 2006 fell to $150,745 from $806,414 in 2005 primarily due to an increase in royalties in Ukraine. Cash flow from operations decreased to $795,389 in 2006 from $1,289,545 last year for the same reason. Production for the year averaged 239 barrels per day, essentially unchanged from 246 barrels per day in 2005.

The Company's also advised that its Annual Information Form ("AIF"), Financial Statements and Managements' Discussion and Analysis for the year ended December 31, 2006 have been filed on the System for Electronic Document Analysis and Retrieval ("SEDAR"). The AIF contains the supplemental disclosure, including detailed reserves information, as mandated and required by Canadian Administrators National Instrument 51-101.

In other news, the Company announced that the most recent development well (#306) in its Ukraine joint venture reached total depth and produced 150 barrels per day on a 24 hour test (68 barrels per day net to Kroes).

The Company is proceeding with the previously announced sale of its 45% interest in the Kashtan Petroleum Ltd. Joint Venture in Ukraine to Shelton Canada Corp. An Annual and Special Shareholders Meeting is schedule to be held on May 29, 2007 at which time shareholders will have an opportunity to vote on the proposed transaction.

Kroes Energy is a junior oil and gas producer and explorer participating in the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern Europe's fastest growing economies. It also has a Joint Venture agreement in central Alberta. Kroes has a strong management team, with extensive international experience.


This disclosure contains certain forward-looking estimates that involve substantial known and unknown risks and uncertainties, certain of which are beyond Kroes' control, including: the impact of general economic conditions in the areas in which the Company operates, industry conditions, changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced, increased competition, the lack of availability of qualified personnel or management, fluctuations in commodity prices, foreign exchange or interest rates, stock market volatility and obtaining required approvals of regulatory authorities. In addition, there are risks and uncertainties associated with oil and gas operations; therefore, Kroes' actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking estimates and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking estimates will transpire or occur, or if any of them do so, what benefits, including the amounts of proceeds, that Kroes will derive from that.

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

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