Sharon Energy Ltd.

Sharon Energy Ltd.

February 28, 2005 09:00 ET

Sharon Announces Financial & Operating Results for Nine Months Ended December 31, 2004 and Updates Exploration Activity


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: SHARON ENERGY LTD.

TSX VENTURE SYMBOL: SHY

FEBRUARY 28, 2005 - 09:00 ET

Sharon Announces Financial & Operating Results for
Nine Months Ended December 31, 2004 and Updates
Exploration Activity

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2005) - Sharon Energy Ltd.
(TSX VENTURE:SHY) :

(Sharon Energy Ltd. reports its financial results in U.S. dollars)

Sharon Energy Ltd. reports than an increase in production volumes and
commodity prices resulted in an increase in the Company's revenue to
$682,000, for the nine months ended December 31, 2004, from $477,000 for
the same period in 2003.

Cash flow from operations for the nine months totaled $215,000 compared
with cash flow of $137,000 for the same period in 2003. The Company
reported a loss of $682,000 for the period compared with earnings of
$228,000 in 2003. The earnings in 2003 resulted primarily from future
income tax recovery of $457,000 recognized during 2003.

Sharon reports that pipelining operations are currently underway on its
Allen Ranch prospect in Texas. The well will be completed in the next 30
days upon completion of the production facilities. In addition, the
Company has a 10% interest in a significant oil discovery in central
Alberta, which will be placed on-stream next week. As part of the
continuing development of this area, Sharon will participate for a 5%
working interest in a second well planned to commence drilling in March
2005.

Sharon Energy Ltd. is a junior oil and gas company currently conducting
active natural gas exploration programs in Texas, Wyoming and Alberta.
Sharon is currently focused on exploring for natural gas in Alberta and
deep Wilcox gas in Texas.

Forward-looking statements - statements included in this press release
that are not historical facts may be considered "forward-looking
statements." All estimates and statements that describe the Company's
objectives, goals or future plans are forward-looking statements.
Forward-looking statements involve inherent risks and uncertainties
where actual results could differ materially from those currently
anticipated.



SUMMARY OF OPERATIONS

Nine Months Ended
December 31
---------------------------
(expressed in U.S. Dollars) 2004 2003
------------------------------------------------------------------------
Financial

Total revenue (net of royalties) $ 681,608 $ 476,993
Cash flow $ 215,098 $ 136,805
Cash flow per share $ 0.01 $ 0.00
Earnings (loss) for the period $ (681,816) $ 227,625
Earnings (loss) per share $ (0.02) $ 0.01
Capital
Additions $ 1,465,977 $ 1,971,449
Dispositions $ 150,000 $ 82,262
Net debt $ 2,932,806 $ 1,852,772
Total assets $ 4,292,571 $ 4,198,780

Operations

Production
Gas (Mcfd) 455 348
Oil (Bopd) 19 14
BOEd (6mcf =1bbl) 94 72
Product Prices
Gas ($/Mcf) $ 4.46 $ 4.31
Oil ($/Bbl) $ 36.59 $ 27.38

Total shares outstanding, at period end 37,555,598 33,452,098
------------------------------------------------------------------------
------------------------------------------------------------------------



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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Sharon Energy Ltd.
    H.C. (Kip) Ferguson, III
    President
    (713) 789-5395
    (713) 789-8454 (FAX)
    or
    Sharon Energy Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    Website: www.sharonenergy.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.