Prairie Pacific Energy Corporation

Prairie Pacific Energy Corporation

March 01, 2005 19:20 ET

Prairie Pacific Energy Posts Continued Gains in Production, Revenues, Working Capital from Operations & Net Income for First Quarter of Fiscal 2005


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PRAIRIE PACIFIC ENERGY CORPORATION

TSX VENTURE SYMBOL: PRP

MARCH 1, 2005 - 19:20 ET

Prairie Pacific Energy Posts Continued Gains in
Production, Revenues, Working Capital from Operations
& Net Income for First Quarter of Fiscal 2005

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 1, 2005) - Natural gas
and liquids production from two new wells on Prairie Pacific Energy
Corporation's (TSX VENTURE:PRP) most active property in Central Alberta,
combined with higher oil and gas prices contributed to continued gains
in production, revenues, working capital from operations and net income
in the first quarter of fiscal 2005, the Company announced today.

The improvement in results for the first quarter of the fiscal year
ending September 30, 2005 included a 204% increase in revenues, which
were $822,478 compared with $270,078 in fiscal 2004. Working capital
generated from operations for the period was $464,989 compared to
$68,295 in the first quarter 2004. The company's annualized Earnings
Before Income Taxes, Depreciation and Amortization (EBITDA) at December
31, 2004 was $1.87 million or $0.29 per share. Prairie Pacific Energy
recorded a net income for the three months ending December 31, 2004 of
$126,226 or $0.02 cents per common share compared to a loss of $10,428
in the same period a year ago.

During the quarter two additional natural gas and liquids wells went
into production at Prairie Pacific Energy's most-active property,
located in Central Alberta. The wells contributed an average of 45
barrels of oil equivalent ("boe"1) per day net to the Company. At
December 31, 2004 there were seven producing wells on the interest
lands. Two more wells were completed late in the quarter and are
suspended pending abandonment.

At December 31, 2004, Prairie Pacific Energy has various working
interests in 20 producing gas wells and six oil wells compared to eight
gas and five oil wells a year ago.

The average oil and natural gas production for the first quarter was 237
boe per day, compared with 104 boe per day in the first quarter of the
previous year. Production as measured by the exit rate on December 31,
2004 was 233 boe per day compared to 75 boe per day on December 31, 2003.

The sales split by volume in the quarter was 33% crude oil and natural
gas liquids and 67% natural gas. The sales split by value was 41% crude
oil and natural gas liquids and 59% natural gas. Average sales prices
were $52.30 per barrel of oil and $5.82 per gigajoule of gas, compared
with $38.14 per barrel of oil and $5.50 per gigajoule of gas a year ago.

Prairie Pacific Energy will continue to build the value of its common
shares through an aggressive program of drilling and development.

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. 1boe(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.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Prairie Pacific Energy Corporation
    Malcolm F. W. Todd
    President & C.E.O.
    (604) 684-2356
    Email: ir@ppec.com
    Website: www.ppec.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this news release.