Sharon Energy Ltd.
TSX VENTURE : SHY

Sharon Energy Ltd.

June 20, 2005 12:13 ET

Sharon Announces New Texas Gas Discovery and Year End Financial Results

CALGARY, ALBERTA--(CCNMatthews - June 20, 2005) - (Sharon Energy Ltd. reports its financial results in U.S. dollars)

Operations

Sharon Energy Ltd. (TSX VENTURE:SHY) today announced that its Dickson #1 well on the Hound Dog prospect, Lavaca County, Texas was flowing to market at 4.2 MMcfd with a flowing tubing pressure of 2,075 psi. The well, in which Sharon holds a 22.5% working interest, is still flowing to clean-up following a fracture treatment.

Sharon also reported that its Hancock #1 well on the Allen Ranch prospect, Colorado County, Texas is steadily producing at 3.4 MMcfd. Sharon holds a 14% working interest in this well.

In addition, Sharon holds a 10% working interest in a previously announced Harmattan discovery, in Alberta, which is currently producing at 400 bopd and 0.85 MMcfd.

Financial

For the year ended March 31, 2005, the Company reported revenues of $1.0 million for the year, compared with $703,000 one year earlier. Cash flow increased to $304,000, or $0.01 per share, from $189,000, or $0.01 per share in the prior year. Sharon reported earnings of $766,000 for the year, compared with a loss of $1.04 million in 2004. While production for the year averaged 99 BOEd, recent operations have increased the Company's production to over 350 BOEd.

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.



Summary of Operations

For the Year Ended March 31
(expressed in U.S. Dollars) 2005 2004
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Financial
Total revenue $ 1,004,575 $ 702,528
Cash flow from operations $ 303,682 $ 188,974
Cash flow per share $ 0.01 $ 0.01
Earnings (loss) for the period $ 766,460 $ (1,037,823)
Earnings (loss) per share $ 0.02 $ (0.03)
Capital
Additions $ 2,033,028 $ 2,418,664
Dispositions $ 150,000 $ 95,510
Net debt $ 3,269,078 $ 2,176,207
Total assets $ 6,320,738 $ 3,455,102
Operations
Production
Gas (Mcfd) 476 376
Oil (Bopd) 20 13
BOEd (6Mcf =1Bbl) 99 77
Product Prices
Gas ($/Mcf) $ 5.00 $ 4.47
Oil ($/Bbl) $ 38.32 $ 29.06
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
    Houston, Texas
    (713) 789-5395
    (713) 789-8454 (FAX)
    or
    Sharon Energy Ltd.
    Robert W. Lamond, Chairman
    Calgary, Alberta
    (403) 269-9889
    (403) 269-9890 (FAX)
    Website: www.sharonenergy.com