Prairie Schooner Petroleum Ltd.

Prairie Schooner Petroleum Ltd.

March 16, 2005 09:00 ET

Prairie Schooner Petroleum Ltd. Announces Closing of Initial Public Offering and Commencement of Trading on the Toronto Stock Exchange




MARCH 16, 2005 - 09:00 ET

Prairie Schooner Petroleum Ltd. Announces Closing of
Initial Public Offering and Commencement of Trading on
the Toronto Stock Exchange

CALGARY, ALBERTA--(CCNMatthews - March 16, 2005) - Prairie Schooner
Petroleum Ltd. (TSX:PSL) is pleased to announce today the closing of its
Initial Public Offering ("IPO"). At closing, a total of 1,924,000 common
shares were issued at a price of $13.00 per common share for gross
proceeds of $25 million. Common shares of Prairie Schooner will begin
trading today on the Toronto Stock Exchange under the symbol "PSL".

The net proceeds from the IPO will initially be applied to reduce bank
debt. The credit facilities will in turn be drawn upon, along with funds
from operations, to fund the Company's 2005 capital expenditure program
of $30 million.

The IPO was led by GMP Securities Ltd. and included Peters & Co.
Limited, Sprott Securities Inc., FirstEnergy Capital Corp. and Tristone
Capital Inc.

Prairie Schooner Petroleum is an Alberta based company involved in the
exploration, development and production of natural gas and crude oil. As
of December 31, 2004 Prairie Schooner had proved plus probable reserves
of 7.966 million barrels of oil equivalent and 153 thousand net acres of
undeveloped land. Prairie Schooner is currently producing approximately
2,050 boe/d (95% natural gas) and has approximately 300 boe/d of
additional production awaiting tie-in.

Prairie Schooner Petroleum will announce its fourth quarter and 2004
year-end results on Wednesday March 23, 2005.

The Company's fundamental focus continues to be on increasing
shareholder value through a combination of grass roots exploration,
strategic acquisitions and subsequent exploitation.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
Common Shares will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.

This disclosure contains certain forward looking statements that involve
substantial known and unknown risks and uncertainties, certain of which
are beyond Prairie Schooner's control, including: the impact of general
economic conditions in Canada and the United States, industry
conditions, changes in laws and regulations including the adoption of
new environmental laws and regulations and changes in how they are
interpreted and enforced, increased competition, the lack of
availability of qualified personnel or management, fluctuations in
foreign exchange or interest rates, stock market volatility and market
valuations of companies with respect to announced transactions and the
final valuations thereof, and obtaining required approvals of regulatory
authorities. Prairie Schooner's actual results, performance or
achievement could differ materially from those expressed in, or implied
by, these forward looking statements and, accordingly, no assurances can
be given that any of these events anticipated by the forward looking
statements will transpire or occur, or if any of them do so, what
benefits, including the amount of the proceeds, that Prairie Schooner
will derive therefrom.


Contact Information

    Prairie Schooner Petroleum Ltd.
    Mr. Jim Saunders
    CEO and Chairman
    (403) 303-3750
    (403) 266-8681 (FAX)
    Prairie Schooner Petroleum Ltd.
    Mr. Jerry Sapieha, CA
    Vice President, Finance and CFO
    (403) 303-3762
    (403) 266-8681 (FAX)