Rival Energy Ltd.

Rival Energy Ltd.

March 10, 2005 07:00 ET

Rival Energy Ltd. Hits 1,000 Boe/d Production Milestone


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: RIVAL ENERGY LTD.

TSX VENTURE SYMBOL: RGY

MARCH 10, 2005 - 07:00 ET

Rival Energy Ltd. Hits 1,000 Boe/d Production Milestone

CALGARY, ALBERTA--(CCNMatthews - March 10, 2005) - Rival Energy Ltd.
(TSX VENTURE:RGY) is pleased to provide the following update on its
recent corporate activities.

Rival has achieved an important production milestone of 1,000 barrels of
oil equivalent per day (boe/d), reflecting strong results through the
drill bit in the fourth quarter of 2004, and recent completion of a
majority of tie-in and completion work. The achievement re-establishes
Rival's momentum in production and reserves growth and ensures the
Company's financial position remains solid. The Company's strategy of
pursuing internally-generated prospects within its core areas is proving
successful.

East-Central Alberta Core Area

Rival is currently gearing-up for an active drilling program over the
next 3-4 months. In east central Alberta, the Company plans to drill two
natural gas prospects and aggressively pursue the delineation of its new
pool oil discovery at Killam. The original discovery well is presently
producing at a restricted rate of 120 barrels of oil per day (bopd) (100
bopd net to Rival). Rival, which has an 84% working interest in the
play, will drill another three or four more wells into this pool during
the second quarter. Also, based on 3D seismic and in the vicinity of the
discovery, the Company plans to test a similar zone for oil. Success
would establish another new pool oil discovery that would be followed by
significant development over the next six to nine months.

In the fourth quarter of 2004, Rival also completed three natural gas
wells in east central Alberta (average 85% working interest), which were
tied-in during the first quarter of 2005. Additionally, the Company
drilled a fourth successful natural gas well in the first quarter of
2005 in the Sedalia area. We expect this latest well, plus a productive
zone within another well (currently waiting on specialized wellhead
equipment) to be placed on production within the next 30 days.

Southwest Saskatchewan Core Area

Rival is also following up a very successful fourth-quarter drilling
program at Robsart in southwest Saskatchewan. The Company is licensing
another five wells to be drilled as soon as the required services are
contracted. Over the last two months, Rival (50% working interest)
completed, tied-in and placed on-stream the previous five natural gas
wells completed at Robsart in southwest Saskatchewan

2004 Corporate Growth

Rival's success in 2004 yielded growth in all areas. Although the
Company has not yet finalized its 2004 annual audit and independent
reserve evaluation, the following estimates summarize the Company's
performance for 2004.

- Average production rate of 709 boe/d, a 5% increase from the 677 boe/d
average in 2003;

- Corporate reserves, on a total proved basis, grew by 33% (11% after
replacing 2004 production) and 46% on a total proved plus probable basis
(28% after replacing 2004 production).

- Rival replaced its 2004 produced reserves by a factor of 2.6 times or
258%. Estimated finding and development costs were $14.30 per boe, on a
total proven basis or $8.35 per boe on a total proven plus probable
basis;

- Corporate oil and natural gas sales were more than $10.5 million in
2004, a 16% increase over 2003; and

- Cash flow was approximately $4.4 million or $0.23 per share, an
increase of 15% year-over-year.

With the success of its fourth-quarter drilling program, Rival is
forecasting average 2005 production of 1,000 boe/d and an exit rate
1,200 boe/d. This 41% increase in average production from 2004 is
expected to translate into record oil and natural gas sales, of
approximately $13.5 million (based on GLJ Oct.1/04 pricing), and an
estimated record cash flow of $6.5 million or $0.34 per share.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Rival Energy Ltd.
    Mr. Colin Ogilvy
    (403) 233-4366
    Email: ogilvy@rivalenergy.com
    or
    Rival Energy Ltd.
    Mr. George Ziroff
    (403) 233-4365
    Email: ziroff@rivalenergy.com
    Website: www.rivalenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.