Pilot Energy Ltd.

Pilot Energy Ltd.

March 10, 2005 17:11 ET

Pilot Energy Ltd. Announces Acquisition and Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PILOT ENERGY LTD.

TSX VENTURE SYMBOL: PGY

MARCH 10, 2005 - 17:11 ET

Pilot Energy Ltd. Announces Acquisition and Private
Placement

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Pilot Energy Ltd.
(TSX VENTURE:PGY) ("Pilot") announces that it has signed a Letter of
Intent with an arm's length party to acquire approximately 150 barrels
per day of light oil production in southeastern Saskatchewan for a total
purchase price of $3.3 million. The properties compliment Pilot's
current production in the Cantal, Queensdale and Innes areas of
Saskatchewan and provide additional exploration and development
opportunities to add to Pilot's current inventory of drilling locations.
The acquisition is expected to close on April 1, 2005.

Pilot would also like to announce that it has made application for
approval from the TSX Venture Exchange for the additional listing, on a
private placement basis, of up to 2,000,000 common shares which will be
issued at a price of $1.40 per share. Insiders of Pilot are expected to
subscribe for up to 20 percent of the issue. Pilot will pay a commission
of seven percent as well as issue up five percent broker warrants which
are exercisable for up to one year at issue price to certain brokers who
are participating in the share offering.

After completion of the acquisition and financing, Pilot will average
875 to 925 barrels of oil equivalent per day in 2005 with a planned $13
million capital program.

Pilot is a Canadian junior energy company engaged in the exploration,
development and production of crude oil and natural gas in Alberta and
Saskatchewan.

This news release may contain forward-looking information. Actual future
results may differ materially from those contemplated.

Issued and Outstanding Common Shares: 15,890,212

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pilot Energy Ltd.
    Todd A. Lemieux
    President
    (403) 514-8115 ext. 226
    or
    Pilot Energy Ltd.
    Douglas K. Smith
    C.F.O.
    (403) 514-8115 ext. 232
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.