Prairie Pacific Energy Corporation
TSX VENTURE : PRP

Prairie Pacific Energy Corporation

August 29, 2005 21:10 ET

Prairie Pacific Announces Nine Months Results

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 29, 2005) - Prairie Pacific Energy Corporation's (TSX:PRP) revenues, working capital from operations and income per share for the nine months ended June 30, 2005 showed significant increases, compared to the same period a year ago, due to the success of drilling and development on its principal property at Elnora, in central Alberta, the Company announced today. Higher oil and gas prices also strengthened the financial results.

Investments in new infrastructure and additional drilling at Elnora in central Alberta has remained the Company's focus during the reporting period and subsequent thereto.

Operating revenue from oil and gas sales and processing for the nine months ended June 30 totalled C$2,961,330 this year compared to C$1,263,958 in 2004, a gain of 134%. Cash flow, stated as working capital from operations, increased by 283% from C$447,819 in 2004 to C$1,717,016. Net income was C$675,039 or ten cents (C$0.10) per share for the nine months of fiscal 2005, compared with a restated loss of C$12,351 or zero cents (C$0.00) per share for the same period last year.

For the three months ended June 30, operating revenue from oil and gas sales and processing totalled C$1,194,806 compared to C$473,635 for the same period a year ago, a gain of 152%. Net income for the quarter was C$294,074 or five cents (C$0.05) per share this year compared to C$692 (restated) or zero cents (C$0.00) per share for the third quarter, 2004.

During the third quarter, the Company drilled and completed 1 successful gas well in central Alberta which was tied-in subsequent to the period in addition to the tie-in of a previously completed gas well at the Company's Negus property located in northwest Alberta. The Company and its partners are also installing additional compression capacity which will ultimately enable the company to optimize production from the wells in the Elnora play.

Prairie Pacific Energy's oil, gas and liquids production has increased from an average 114 barrels of oil equivalent per day for the quarter ended June 30, 2004 to 350 boe/d at June 30 this year and currently stands at approximately 360 boe/d with an additional 10 boe/d behind pipe.

In Elnora, production consists of long life, liquids rich gas and medium gravity oil. The Company has an inventory of 14 low risk Ellerslie zone infill opportunities which yield initial production rates up to 800 mcf per day and ultimate recoveries up to 1.0 Bcf. The Company is also pursuing a high impact exploration play, as a secondary target, on the same lands.

In addition to ongoing development at Elnora, the Company plans to complete and tie-in a 50% working interest Belloy oil well at its Cecil Lake, B.C. property before the end of the fourth quarter.

WARNING: The Company relies upon litigation protection for "forward-looking statements". Statements in this news release which are not purely historical are forward-looking statements, including those regarding beliefs, plans, expectations or intentions regarding the future. Such information involves important risks and uncertainties that could significantly affect anticipated results and accordingly, such results may differ materially from those expressed in forward-looking statements made by or on behalf of the company. Although the company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that they will prove to be accurate.

boe(s) may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS NEWS RELEASE.

Contact Information

  • Prairie Pacific Energy Corporation
    Malcolm F.W. Todd
    President & C.E.O.
    (604) 684-2356
    E-mail: ir@ppec.com
    Web Site address: www.ppec.com