Kroes Energy Inc.

Kroes Energy Inc.

March 02, 2007 17:25 ET

Kroes Energy Announces New Drilling in Ukraine and Western Canada

CALGARY, ALBERTA--(CCNMatthews - March 2, 2007) - Kroes Energy Inc. (TSX VENTURE:KRS) announced today that it is participating in two new wells, one in Ukraine and one in western Canada.

In Ukraine, the Kashtan Petroleum Joint Venture, in which Kroes Energy has a 45% interest, has spudded development well #306. This well will be drilled to a total depth of 1700 meters and will test both the P1 - P2 sands and the deeper K1 zone. The well is currently drilling at 700 meters and is expected to reach total depth by March 31, 2007.

In Canada, Kroes Energy has a 25% working interest in a prospective new gas well which has commenced drilling in central Alberta. The well, which will test the Upper Mannville, should reach total depth of 800 meters within the next week.

In other news, Kroes Energy has granted incentive stock options to a consultant for the purchase of 100,000 common shares at $.155 per share. The options will vest equally over the next 3 years and have a term of 5 years under the option plan. Kroes can issue options to a maximum of 10% of the number of share outstanding and, prior to this grant, the number of options available to issue was 1,273,000.

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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