Nevarro Energy Ltd.

Nevarro Energy Ltd.

March 08, 2005 17:35 ET

Nevarro Energy Ltd.: News Release


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NEVARRO ENERGY LTD.

TSX VENTURE SYMBOL: NEL

MARCH 8, 2005 - 17:35 ET

Nevarro Energy Ltd.: News Release

CALGARY, ALBERTA--(CCNMatthews - March 8, 2005) - Nevarro Energy Ltd.
(TSX VENTURE:NEL) ("Nevarro") is pleased to provide certain results of
its independent reserve evaluation as prepared in accordance with NI
51-101 by DeGolyer MacNaughton Canada Limited for the year ended
December 31, 2004.

Total reserves, based on escalated dollar economics, increased by 187%
over the previous year to 3,074,139 (gross) boe from 1,069,919 (gross)
boe as at December 31, 2003.

Nevarro's net present value of reserves, based on escalated dollar
economics, (before tax, discounted at 10%) increased by 281% to
$27,735,000 as at December 31, 2004 from $7,273,000 as at December 31,
2003.

SUMMARY OF OIL AND GAS RESERVES

The following table sets forth Nevarro's net present value of reserves,
based on escalated dollar economics, as at December 31, 2004 (1).



COMPANY SHARE - FORECAST PRICE CASE
Future Cash Flow Before
TOTAL COMPANY Income Tax as of December 31, 2004
------------------------------------------------
Discounted
-----------------------------------
Undiscounted At 5% At 10% At 15% At 20%
------------------------------------------------
M$ M$ M$ M$ M$

Proved Developed
Producing 12,942 11,811 10,847 10,019 9,301
Non-Producing 1,822 1,133 739 507 367
Proved Undeveloped 3,254 2,693 2,252 1,900 1,613
------------------------------------------------

Total Proved 18,018 15,637 13,838 12,426 11,281

Probable 13,983 11,185 9,115 7,539 6,314
------------------------------------------------

Total Proved + Probable 32,001 26,822 22,953 19,965 17,595

Possible 7,411 5,922 4,782 3,894 3,188
------------------------------------------------

Total 39,412 32,744 27,735 23,859 20,783

(1) - may not add due to rounding


OPERATIONS

Nevarro is please to also announce its 2005 drilling program.

The Company has budgeted for a capital spending program of approximately
$6,500,000 for 2005, and plans to participate in the drilling of
approximately 44 wells.

In Saskatchewan, Nevarro plans to drill 42 (20.53 net) wells targeting
natural gas and heavy oil in its west central Saskatchewan focus area.
The remaining 2 (0.54 net) wells will be drilled in Alberta.

Nevarro recently successfully completed and placed on production one
(0.57 net) colony natural gas well. Nevarro anticipates adding an
additional 40 boe/d from this well.

Based upon rig availability and the timing and the length of spring
break up, the Company plans to drill 2.22 net (5 gross) wells during the
month of March 2005. These wells are to be drilled in Nevarro's west
central Saskatchewan focus area.

Based on field estimates, Nevarro is currently producing approximately
950 boe/d. The Company anticipates that the first quarter 2005 drilling
program, if successful, would add approximately 150 (net) boe/d to the
Company's production.

Nevarro currently has 9,107,891 shares outstanding.

This news release contains certain forward-looking statements, which are
based on the Corporation's current internal expectations, estimates,
projections, assumptions and beliefs. Some of the forward-looking
statements may be identified by words such as 'expects', 'anticipates',
'believes', 'projects', 'plans' and similar expressions. These
statements are not guarantees of future performance and involve a number
of risks and uncertainties. Such forward-looking statements necessarily
involve known and unknown risks and uncertainties, which may cause the
Corporation's actual performance and financial results in future periods
to differ materially from any projections of future performance or
results expressed or implied by such forward-looking statements. These
risks and uncertainties include, among other things, changes in general
economic, market and business conditions; changes or fluctuations in
production levels, commodity prices, currency exchange rates, capital
expenditures, reserves or reserves estimates and debt service
requirements or changes to legislation, the Corporation's ability to
comply with current and future environmental or other laws; the
Corporation's success at acquisition, exploitation and development of
reserves; actions by governmental or regulatory authorities including
increasing taxes or other regulations; and the occurrence of unexpected
events involved in the operation and development of oil and gas
properties. The Corporation disclaims any responsibility to update these
forward-looking statements.

Not for distribution to United States newswire services or for
dissemination in the United States.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Nevarro Energy Ltd.
    J.W. Grant Robertson
    Vice-President Business Development
    (403) 231-1230
    or
    Nevarro Energy Ltd.
    Rick Bennett
    President of the Corporation
    (403) 231-1235
    The TSX Venture Exchange has neither approved nor disapproved of the
    information contained herein.