Prairie Pacific Energy Corporation

Prairie Pacific Energy Corporation

September 02, 2005 14:36 ET

Prairie Pacific Energy Pursues Value Maximization

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 2, 2005) - The Board of Directors of Prairie Pacific Energy (TSX VENTURE:PRP) has retained Kobayashi Partners Limited of Calgary, Alberta to conduct a value maximization process for its shareholders.

The Company has rapidly-growing natural gas production volumes from a focused, sustained drilling program underpinned by a strong, long-life reserves base. Currently, Prairie Pacific Energy is producing approximately 360 barrels of oil equivalent per day - weighted 75% to gas - primarily from the Elnora property which is operated by Denim Exploration Corp. In Elnora, production is long life, liquids rich natural gas and medium gravity oil. At Elnora, the Company has 13,600 gross acres with an average working interest of 33% providing an inventory of 14 low risk Ellerslie zone infill opportunities which yield initial production rates of up to 800 Mcf/d and ultimate recoveries up to 1.0 Bcf. In addition, the Company is pursuing a high impact exploration play, as a secondary target, on the same lands.

Prairie Pacific Energy is also active in the Fort St. John area of northeast British Columbia and at Negus in northwestern Alberta. It has interests in processing facilities at Cecil, British Columbia and at Negus, Alberta. Prairie Pacific Energy also has varying minor interests in other developed and undeveloped lands at Brazeau, Carseland and Crossfield, Alberta and Weasel and Holman Creek, British Columbia. The Company's total land position consists of 83,680 gross acres / 17,558 net acres.

Prairie Pacific Energy has strong net income and cash flow and no debt. An aggressive share repurchase program has consolidated and concentrated the value of the company.

A control block of management and associates controlling 55% of the 7,791,378 fully diluted common shares is committed to achieving maximum value for the Company that fully reflects the interests of all shareholders.

Data is being compiled, and Prairie Pacific Energy and Kobayashi Partners expect to circulate an Information Memorandum in the first full business week of September. The deadline for non-binding indication bids is anticipated to be set for the second business week of October, 2005.

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.

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

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