Pan-Global Energy Ltd.
TSX VENTURE : PIE

Pan-Global Energy Ltd.

June 27, 2005 14:20 ET

Pan-Global Energy Ltd.: Disclosure of New Resource Assessment

CALGARY, ALBERTA--(CCNMatthews - June 27, 2005) - Pan-Global Energy Ltd. (TSX VENTURE:PIE) (the "Company") announces that, for specific corporate purposes, the Company retained Gilbert Laustsen Jung Associates Ltd - Petroleum Consultants (GLJA) to evaluate its assets effective March 31, 2005.

On a Proven + Probable + Possible (P3) basis, GLJA has assigned reserves of 15.5 million barrels of oil equivalent, valued at $65.2 million dollars at a 10% dcf, and identified over 170 drilling locations, primarily for Dina heavy oil. These zones in the Company's existing Onion wells have been assigned original recoverable oil in place of up to 150,000 bbls per well on a P3 basis, and recent individual well rates have exceeded 100 bbls/d.

As previously disclosed, Pan-Global has obtained Dina oil production from three separate pools in a trend approximately 15 miles long and 2-3 miles wide. Oil pay zones range from 6 to 30 meters, with porosity averaging 33% and permeability of 0.5 to 8 Darcies. With original oil in place (OOIP) estimated at 0.8 to 1.1 billion barrels, the GLJA oil reserve assignment represents a recovery factor of less than 2% of the estimated OOIP.

Weather permitting, work will commence immediately on the next phase of workovers, completions and drilling operations to compliment the continuing successful field optimization efforts.

A summary of the results of the GLJA evaluation is presented below:



Summary of Reserves and Values

Proved Total
Developed Proved Proved
Proved Non- Un- Total Total Plus Total
Producing producing developed Proved Probable Probable PPP
--------------------------------------------------------------

MARKETABLE
RESERVES
Heavy Oil
(Mbbl)
Total
Company
Interest 103 0 0 103 4,066 4,169 14,719
Gas (MMcf)
Total
Company
Interest 1,441 292 0 1,733 1,400 3,133 4,827
Oil
Equivalent
(Mboe)
Total
Company
Interest 343 49 0 392 4,299 4,692 15,524

BEFORE TAX PRESENT VALUE (M$)
0% 6,053 871 0 6,924 30,917 37,841 136,128
8% 5,285 735 0 6,020 19,279 25,300 74,445
10% 5,130 707 0 5,836 17,313 23,149 65,191
12% 4,985 680 0 5,665 15,602 21,267 57,450
15% 4,786 643 0 5,430 13,430 18,859 48,055


The Corporation is an oil and gas exploration company whose prospective oil and gas property is one of the largest contiguous land bases in Eastern Alberta and Western Saskatchewan. The Company is entitled to exclusively explore and develop approximately 148,000 acres of existing and new Treaty Land Entitlement (TLE) Reserves in Eastern Alberta and Western Saskatchewan under the terms of an agreement with Onion Lake Energy Ltd., which is solely owned by Onion Lake First Nation of Saskatchewan/Alberta.

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

Contact Information

  • Pan-Global Energy Ltd.
    Arn Schoch
    Chairman and CEO
    (604) 682-4984 or Cell: (604) 780-9810
    Email: arn@helix.net
    or
    Pan-Global Energy Ltd.
    Richard Naden
    COO
    (404) 269-6911 (ext. 222)
    Email: rnaden@pgenergy.ca