Sharon Energy Ltd.
TSX VENTURE : SHY

Sharon Energy Ltd.

August 18, 2005 09:00 ET

Sharon Announces Improved Financial & Operating Results for Three Months Ended June 30, 2005

CALGARY, ALBERTA--(CCNMatthews - Aug. 18, 2005) -

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

Sharon Energy Ltd. (TSX VENTURE:SHY) reports that its production volumes more than doubled, to average 197 BOEd in the first quarter of 2005, from 91 BOEd in 2004, which resulted in substantial increases in revenue, cash flow and earnings for the quarter. Sharon's current production is estimated to be 280 BOEd.

Total revenue increased to $626,000 compared with $232,000 for the same period in 2004. Cash flow increased to $402,000 from $82,000 and the Company reported earnings totaling $43,000 compared with a loss of $82,000 for the first quarter of 2004.

The Company reported that production from its key wells on the Mustang Creek, Allen Ranch and Hound Dog prospects in Texas and at Harmattan in Alberta continue to perform at satisfactory rates.

As previously announced in a recent press release, the sale of two of Sharon's non-core properties reduced the Company's net debt from $3.5 million at quarter end, to a current $2.9 million.

During the next two quarters, the Company plans an expansion of its Texas exploration program with new wells proposed at Allen Ranch and Hound Dog. The Company is also completing land acquisition on a fourth deep Wilcox prospect, in Texas, slated for drilling in early 2006.



SUMMARY OF OPERATIONS

Three Months Ended
June 30
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(expressed in U.S. Dollars) 2005 2004
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Financial
Total revenue $ 626,267 $ 231,803
Cash flow from operations $ 401,777 $ 82,264
per share $ 0.01 $ 0.00
Earnings (loss) for the period $ 42,766 $ (82,425)
per share $ 0.00 $ (0.00)
Capital
Additions $ 682,007 $ 280,589
Net debt $ 3,511,809 $ 2,352,085
Total assets $ 6,476,287 $ 3,517,661
Operations
Production
Gas (Mcfd) 913 484
Oil (Bopd) 44 10
BOEd (6Mcf =1Bbl) 197 91
Product Prices
Gas ($/Mcf) $ 6.01 $ 4.64
Oil ($/Bbl) $ 46.40 $ 35.49
Total shares outstanding, at period end 38,422,265 33,555,598
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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.

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

Contact Information

  • 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