July 11, 2005 15:24 ET

Operational Update for Pelorus Energy Corp. & Redstar Oil & Gas Inc.

CALGARY, ALBERTA--(CCNMatthews - July 11, 2005) -

Not for distribution to U.S. newswire services or for dissemination in the United States of America

PELORUS ENERGY CORP. (TSX VENTURE:PN) ("Pelorus") is pleased to announce that RedStar Oil & Gas Inc. ("RedStar"), the private oil and gas company that is proposed to amalgamate with Pelorus in July 2005, has completed its operations at its Klua farmin location. The well is now on production and brings current production from 300 boe per day to just over 600 boe per day. The high netback production increases the cashflow for the combined company and comfortably situates Pelorus with the required cashflow and working capital to execute its 2005/2006 drilling program.

Pelorus is a junior oil and gas company engaged in the exploration, development and production of oil and natural gas in the Western Canadian Sedimentary Basin.

Cautionary Statements

Disclosure provided herein in respect of boe units may be misleading, particularly if used in isolation. A boe conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Certain information set forth in this document, including management's assessment of future plans and operations, contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond this party's control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Actual results, performance or achievement could differ from those expressed in, or implied by, these forward-looking statements, and accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits will be derived there from. Pelorus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Contact Information

  • Pelorus Energy Corp.
    Chester J.R. Krala
    (403) 262-3130
    (403) 239-0621 (FAX)
    Avenir Capital Corporation
    William Gallacher
    (403) 237-9949