Peregrine Energy Ltd.

Peregrine Energy Ltd.

March 30, 2005 13:22 ET

Peregrine Energy Ltd. Announces 2004 Year End Results




MARCH 30, 2005 - 13:22 ET

Peregrine Energy Ltd. Announces 2004 Year End Results

CALGARY, ALBERTA--(CCNMatthews - March 30, 2005) -


Peregrine Energy Ltd. ("Peregrine" or the "Company", formerly Tesoro
Energy Corp.) (TSX:PEG) announces today the operational and audited
financial results for the year ended December 31, 2004. The Company
achieved record levels of operational and financial performance in 2004
as compared to the prior year.

Highlights for 2004 included:

- Raising $22 million by way of a private placement of special warrants
and flow-through shares.

- Participating in a 740 sq km 3D and 240 km 2D seismic program in the
Gunnell region of N.E. British Columbia. The Company has proprietary
ownership in this seismic.

- Concluding an important joint venture partnership with a large U.S.
independent producer on the Company's Gunnell Prospect.

- Completing the business combination with Peregrine Energy Ltd. (a
private company) in July 2004.

- Successfully closed three asset acquisitions for an aggregate
consideration of $29.0 million adding approximately 1,030 boe/d and
2,830 Mboe of total proved plus probable reserves.

- Completed a 64 well shallow gas development program at Jenner, Alberta.

- Exiting 2004 at approximately 1,825 boe/d compared to about 130 boe/d
for the prior year.

The Financial and Operating highlights are summarized below:

Year Ended December 31, 2004 2003(1)
(Audited) (Audited)
Oil and gas production revenue $ 11,297,904 $ 2,282,632
Cash flow from operations $ 3,710,391 $ 702,381
Cash flow per share - basic and diluted $ 0.19 $ 0.17
Net income $ 4,132,473 $ 500,050
Earnings per share - basic and diluted $ 0.21 $ 0.12
Capital expenditures, net of dispositions $ 56,113,392 $ 765,334
Debt $ 19,200,000 $ 1,275,000
Shareholders' equity $ 47,457,176 $ 11,854,180
Common shares outstanding, end of year 30,124,379 9,719,925(1)

(1) shares and amounts per share have been adjusted by a 1 to 20
exchange ratio
Average daily production
Crude oil and NGL's (bopd) 439 104
Natural gas (mcfpd) 1,606 343
Barrel of oil equivalent (boepd @ 6:1) 707 161

Average Selling Prices
Crude oil and NGL's ($ / bbl) $ 46.46 $ 38.83
Natural gas ($ / mcf) $ 6.51 $ 6.51
Barrel of oil equivalent ($ / boe @ 6:1) $ 43.67 $ 38.84
Average Field Netback ($ / boe @ 6:1) $ 22.37 $ 20.50


The 2004 reserve evaluation as evaluated by Sproule Associates Limited
was compiled pursuant to the guidelines of National Instrument 51-101.
The standard for booking proven reserves under this new guideline
requires that proven reserves have a 90% degree of certainty and
therefore a high likelihood that ultimate recoverable reserves will
exceed current estimates. This is particularly onerous on new wells and
pool development potential. As a result, 43% of Peregrine's proven
reserves are classified as proven producing and 61% of Peregrine's total
reserves are proven. Current reserve life index is 6.9 years on a proven
basis and 11.4 years on a proven plus probable basis. The Company's
reserves and net present value of reserves are summarized in the
following table:

Net Revenue
before Tax
of dollars)
Company Gross Reserves Discount Rate

Oil NGL's Gas
(mbbls) (mmbls) (mmcf) 10% 15%
-------- ---- ------ ------- --------
Proved Development Producing 1,143.0 19.0 9,616 $38,364 $34,617
Proved Developed non Producing 17.6 5.0 352 711 567
Proved Undeveloped 697.7 2.7 2,428 8,426 6,316
-------- ---- ------ ------- --------
Total Proved 1,858.3 26.7 12,396 47,501 41,500
Probable 1,655.0 13.9 4,986 15,104 10,688
-------- ---- ------ ------- --------
Total Proved plus Probable 3,513.3 40.6 17,382 $62,605 $52,188

Future prices used in the forecast of net revenues in the above table
are based upon estimates of Sproule Associates Limited. As summarized

Natural Gas
Oil (WTI) Oil (Edm.) (AECO-C)
Year ($U.S./bbl) ($Cdn./bbl) ($Cdn/mmbtu)
------------ ----------- ------------
2005 44.29 51.25 6.97
2006 41.60 48.03 6.66
2007 37.09 42.64 6.21
2008 33.46 38.31 5.73
2009 31.84 36.36 5.37

Thereafter annual change is 1.5% per year

Unlike 2004 where production and reserves growth was mostly as a result
of acquisitions, 2005 will see a significant shift to growth by the
drill bit. However, management will continue to evaluate accretive and
synergistic acquisition opportunities as they arise. Peregrine commenced
its 2005 capital program with three successful horizontal wells in S.E.
Saskatchewan resulting in an initial net aggregate production rate of
approximately 200 barrels per day. The Company has programmed up to six
follow-up horizontal wells for this area beginning in June.

In N.E. British Columbia, Peregrine recently cased two exploratory
wells, a 2,800 meter test and a 1,700 meter test in the Noel and Buick
Creek regions respectively, both indicating multi-zone gas potential.
The Company has an average working interest of 60% in these two wells.
Due to an early spring break-up, completion operations have been delayed
until June, however, based on indications to date, Peregrine has
budgeted two follow-up wells at Buick Creek and three in the Noel region
with the first well expected to spud in Q3 . The Company has additional
undeveloped lands surrounding these two wells and depending on the
results from the next round of drilling, a significant development
opportunity on both properties could emerge.

At the Company's Gunnell project in N.E. British Columbia, Peregrine
plans to drill one 2,400 meter test well for the reef targets of the Keg
River and Slave Point formations. Earlier plans were to drill two wells
with an average working interest of up to 25 percent however; Peregrine
is pursuing several opportunities that would significantly increase its
working interest in this project. To date the Company has identified six
potential drilling locations at Gunnell and it is believed that
additional opportunities will present themselves with further evaluation
of the seismic coverage and successful drilling results.

The 2005 capital program also includes 17 development wells at Jenner,
six wells in the central Alberta region, nine wells in southern Alberta,
two exploratory wells at Parksbeg, Saskatchewan and a significant number
of recompletion opportunities. In addition to this activity, Peregrine
has budgeted for two large seismic programs and a number of upcoming
Crown land sales.

Last year's activities have laid a solid foundation for future growth
and depending on the degree of success attained from the Company's 2005
capital program and specifically from its projects in N.E. British
Columbia, Peregrine could see a significant increase in reserves and
production levels by year end.

For additional information on Peregrine, please go to the Company's
profile on SEDAR at


Except for historical financial information contained herein, the
matters discussed in this document may be considered forward-looking
statements. Such statements include declarations regarding management's
intent, belief or current expectations. Prospective investors are
cautioned that any such forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties;
actual results could differ materially from those indicated by such
forward-looking statements. Among the important factors that could cause
actual results to differ materially from those indicated by such
forward-looking statements are: (i) that the information is of a
preliminary nature and may be subject to further adjustment, (ii) the
possible unavailability of financing, (iii) risks related to the
exploration and development of oil and gas properties, (iv) the impact
of price fluctuations and the demand and pricing for oil and natural
gas, (v) the seasonal nature of the business, (vi) start-up risks, (vii)
general operating risks, (viii) dependence on third parties, (ix)
changes in government regulation, (x) the effects of competition, (xi)
dependence on senior management, (xii), impact of the Canadian economic
conditions, (xiv) fluctuations in currency exchange rates and interest


Contact Information

    Peregrine Energy Ltd.
    Peter Malenica
    President & Director
    (403) 206-0027
    (403) 206-0029 (FAX)
    Peregrine Energy Ltd.
    Willie Dawidowski
    VP Finance & CFO
    (403) 206-0027
    (403) 206-0029 (FAX)
    Peregrine Energy Ltd.
    William Gallacher
    (403) 237-9949
    (403) 237-0903 (FAX)
    The Toronto Stock Exchange has neither approved nor disapproved of the
    contents of this release.