Sharon Energy Ltd.
TSX VENTURE : SHY

Sharon Energy Ltd.

November 21, 2005 09:00 ET

Sharon Reports Updated Reserve Evaluation and Corporation's Net Present Value Summary

CALGARY, ALBERTA--(CCNMatthews - Nov. 21, 2005) - Sharon Energy Ltd. (TSX VENTURE:SHY) today announced that an evaluation of the Company's oil and gas reserves effective September 30, 2005 has assigned total proved and probable reserves of 1,471 MBOE to the Company's properties, an increase of 39% from the March 31, 2005 evaluation. The reserves were assigned a net present value, before tax, of $33.9 million based on forecast prices and cost, using a 10% discount rate, an increase of 153% from March 31, 2005.

The most significant change in the Company's reserves was in the United States, as a result of activity during the past six months. The reserves in the United States increased by 43%, to 1,246 MBOE and the net present value, before tax, based on forecast prices and cost using a 10% discount rate, increased by 129%, to $27.5 million ($23.4 million U.S. dollars).

Company Net Present Value

The net present value is based on the engineering evaluation prepared by AJM Petroleum Consultants with an effective date of September 30, 2005 (the "AJM Report"). The present value of the Company's reserves, presented in the table below, discounted at 10% before income tax and 5% after income tax, is extracted from the AJM Report. Seaton Jordan & Associates Ltd. has evaluated undeveloped acreage at September 30, 2005, in compliance with National Instrument 51-101 Standards of Disclosure (the "Seaton Jordan Report"), after tax rates for the land value, assuming the land is sold at the report date.

The Company's net debt is based on its interim financial statements as at September 30, 2005 and does not include liability for future net income tax or asset retirement obligation.

The number of shares outstanding at September 30, 2005 was 38,532,265. Net asset value per share has been fully diluted by 2,533,000 options to purchase common shares at an average price of $0.23 per share and the implied proceeds have been added to the net asset value.

It should not be assumed that net present value represents fair market value. Net present value is dependent upon a number of critical assumptions including the future price of commodities, the timing of production and the estimate of reserves.



SHARON ENERGY LTD
NET PRESENT VALUE
EFFECTIVE SEPTEMBER 30, 2005
----------------------------
Before Tax After Tax
(Millions) (Millions)
-----------------------
Discount Rate:
RESERVES 10% 5%
-----------------------
Proved $ 19.2 $ 14.7
Probable 14.7 13.0
-----------------------
Total proved + Probable 33.9 27.6

UNDEVELOPED LAND 0.7 0.4

NET DEBT 3.5 3.5
-----------------------
TOTAL NET PRESENT VALUE $ 31.1 $ 24.5
-----------------------
-----------------------

-----------------------
TOTAL NET PRESENT VALUE PER SHARE $ 0.77 $ 0.64
-----------------------
-----------------------

SHARES OUTSTANDING 38.5 38.5

OPTIONS 2.5 2.5
-----------------------
TOTAL FULLY DILUTED 41.0 41.0
-----------------------
-----------------------

(1) In the Seaton Jordan Report, fair value is determined based on the
following factors:


1. the acquisition cost, provided that there have been no material changes in the unproved property, the surrounding properties, or the general oil and gas climate since the acquisition;

2. recent sales by others of interests in the same unproved property;

3. terms and conditions, expressed in monetary terms, of recent farm-in agreements;

4. terms and conditions, expressed in monetary terms, of recent work commitments related to the unproved property; and

5. recent sales of similar properties in the same general area.

Reserves

The following tables summarize the oil, liquids and natural gas reserves of the Corporation and the net present values of future net revenue for these reserves using constant prices and costs and forecast prices and costs as derived from the AJM Report. The Reserves Data conforms to the requirements of National Instrument 51-101 Standards of Disclosure for Oil and Gas Activities ("NI 51-101").

All of the Corporation's reserves are in Canada and the United States and, specifically, in the provinces of Alberta and Saskatchewan, in Canada and in the United States, in Texas.

It should not be assumed that the estimates of future net revenues, whether calculated before or after tax or with or without a discount rate, presented in the tables below represent the fair market value of the reserves. There is no assurance that the constant prices and costs assumptions and forecast prices and costs assumptions will be attained and variances could be material. The recovery and reserve estimates of reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. The actual reserves may be greater or less than the estimates provided herein.

For the purpose of presentation in certain tables that follow, US dollar amounts in the AJM Report have been converted to Canadian dollars, at AJM's forecast exchange rate of $0.85 US, unless otherwise stated.



Forecast Prices and Costs

SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS

RESERVES
-------------------------------------------------------
COMPANY TOTAL LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- --------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
------------ ------------ -------------- --------------
PROVED
Developed
Producing 30 25 0 0 1,676 1,304 4 3
Developed
Non-producing - - - - 743 577 - -
Undeveloped 44 36 - - 986 800 3 2
---------------- ------------ ------------ --------------- -------------
TOTAL PROVED 74 60 0 0 3,405 2,681 6 4
PROBABLE 35 28 0 0 4,721 3,639 2 1
---------------- ------------ ------------ --------------- -------------
TOTAL PROVED
PLUS
PROBABLE 109 88 0 0 8,126 6,319 8 6
---------------- ------------ ------------ --------------- -------------
---------------- ------------ ------------ --------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE(1)
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
COMPANY TOTAL TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 13.4 12.1 11.2 10.3 9.7 9.6 8.7 8.0 7.4 6.9
Developed
Non-
producing 5.1 4.3 3.7 3.3 2.9 3.2 2.7 2.3 2.0 1.7
Undeveloped 6.7 5.3 4.3 3.6 3.1 4.3 3.3 2.6 2.2 1.9
----------- ----------------------------- ------------------------------
TOTAL
PROVED 25.2 21.7 19.2 17.2 15.7 17.1 14.7 13.0 11.6 10.5
PROBABLE 31.1 20.7 14.7 11.1 8.7 19.6 13.0 9.3 6.8 5.3
----------- ----------------------------- ------------------------------
TOTAL PROVED
PLUS
PROBABLE 56.3 42.4 33.9 28.3 24.4 36.7 27.6 22.2 18.5 15.8
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS (CDN $)

RESERVES
------------------------------------------------------
CANADIAN LIGHT AND NATURAL GAS & NATURAL GAS
PROPERTIES MEDIUM OIL HEAVY OIL SOLUTION GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 22 18 - - 387 314 4 3
Developed
Non-producing - - - - 60 52 - -
Undeveloped - - - - 393 334 3 2
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 22 18 - - 839 699 6 4
PROBABLE 9 7 - - 278 230 2 1
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED
PLUS PROBABLE 31 25 - - 1,117 929 8 6
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
CANADIAN TAXES DISCOUNTED AT TAXES DISCOUNTED AT
PROPERTIES (% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 4.1 3.6 3.2 2.9 2.7 3.5 3.0 2.7 2.5 2.3
Developed
Non-
producing 0.4 0.3 0.3 0.2 0.2 0.3 0.2 0.2 0.1 0.1
Undeveloped 2.8 2.0 1.6 1.3 1.1 1.8 1.3 1.0 0.8 0.7
----------- ----------------------------- ------------------------------
TOTAL PROVED 7.3 5.9 5.1 4.4 4.0 5.6 4.6 3.9 3.5 3.1
PROBABLE 2.6 1.8 1.3 1.1 0.9 1.7 1.2 0.9 0.7 0.6
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 9.8 7.7 6.4 5.5 4.8 7.3 5.8 4.8 4.2 3.7
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS (U.S. DOLLARS)

RESERVES
------------------------------------------------------
U.S. PROPERTIES LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 9 7 - - 1,290 990 - -
Developed
Non-
producing - - - - 683 525 - -
Undeveloped 44 36 - - 594 466 - -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 52 43 - - 2,566 1,981 - -
PROBABLE 26 21 - - 4,443 3,409 - -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED
PLUS PROBABLE 78 64 - - 7,009 5,390 - -
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
U.S. PROPERTIES TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 7.9 7.2 6.8 6.3 6.0 5.2 4.8 4.5 4.2 3.9
Developed
Non-
producing 4.0 3.4 2.9 2.6 2.3 2.5 2.1 1.8 1.6 1.4
Undeveloped 3.3 2.8 2.3 2.0 1.7 2.1 1.7 1.4 1.2 1.0
----------- ----------------------------- ------------------------------
TOTAL PROVED 15.2 13.4 12.0 10.9 10.0 9.8 8.6 7.7 7.0 6.4
PROBABLE 24.2 16.1 11.4 8.5 6.6 15.2 10.0 7.1 5.2 4.0
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 39.4 29.5 23.4 19.4 16.6 25.0 18.7 14.8 12.2 10.5
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


Constant Prices and Costs

SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (CDN DOLLARS)

RESERVES
------------------------------------------------------
COMPANY TOTAL LIGHT AND NATURAL GAS
MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 31 25 - - 1,677 1,305 4 3
Developed
Non-producing 0 0 - - 742 577 - 2
Undeveloped 44 36 - - 986 799 3 -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 74 60 - - 3,405 2,681 6 4
PROBABLE 35 28 - - 4,721 3,639 2 1
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE 109 89 - - 8,126 6,320 8 6
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE(1)
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
COMPANY TOTAL TAXES DISCOUNTED AT TAXES DISCOUNTED AT
(% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 19.9 17.9 16.3 15.1 14.1 13.8 12.4 11.3 10.4 9.7
Developed
Non-
producing 8.5 7.1 6.0 5.2 4.7 5.3 4.4 3.8 3.3 2.9
Undeveloped 10.7 8.6 7.1 6.2 5.3 7.0 5.5 4.6 3.9 3.4
----------- ----------------------------- ------------------------------
TOTAL PROVED 39.1 33.5 29.5 26.5 24.0 26.1 22.4 19.7 17.6 16.0
PROBABLE 51.5 35.1 25.4 19.4 15.3 32.5 22.1 16.0 12.1 9.6
----------- ----------------------------- ------------------------------
TOTAL
PROVED
PLUS
PROBABLE 90.6 68.7 55.0 45.9 39.4 58.7 44.4 35.7 29.7 25.6
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (CDN DOLLARS)

RESERVES
------------------------------------------------------
CANADIAN LIGHT AND NATURAL GAS & NATURAL GAS
PROPERTIES MEDIUM OIL HEAVY OIL SOLUTION GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 22 18 - - 387 315 4 3
Developed
Non-producing - - - - 59 52 - 2
Undeveloped - - - - 393 333 3 -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 22 18 - - 839 700 6 4
PROBABLE 9 7 - - 278 230 2 1
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE 31 25 - - 1,117 930 8 6
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
CANADIAN TAXES DISCOUNTED AT TAXES DISCOUNTED AT
PROPERTIES (% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 5.3 4.6 4.1 3.7 3.4 4.3 3.7 3.3 3.0 2.8
Developed
Non
-producing 0.6 0.5 0.4 0.3 0.3 0.4 0.3 0.3 0.2 0.2
Undeveloped 3.8 2.8 2.2 1.8 1.5 2.6 1.9 1.5 1.2 1.0
----------- ----------------------------- ------------------------------
TOTAL PROVED 9.7 7.9 6.7 5.8 5.2 7.2 5.9 5.0 4.4 4.0
PROBABLE 3.4 2.4 1.8 1.4 1.1 2.3 1.6 1.2 0.9 0.8
----------- ----------------------------- ------------------------------
TOTAL PROVED
PLUS
PROBABLE 13.1 10.3 8.5 7.2 6.3 9.5 7.5 6.3 5.3 4.7
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------


SUMMARY OF OIL AND GAS RESERVES
AND NET PRESENT VALUES OF FUTURE NET REVENUE
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS (US DOLLARS)

RESERVES
------------------------------------------------------
LIGHT AND NATURAL GAS
U.S. PROPERTIES MEDIUM OIL HEAVY OIL NATURAL GAS LIQUIDS
------------ ------------ -------------- -------------
Gross Net Gross Net Gross Net Gross Net
RESERVES CATEGORY (MBbl)(MBbl) (MBbl)(MBbl) (MMcf) (MMcf) (MBbl)(MBbl)
----------------- ------------ ------------ -------------- -------------
PROVED
Developed
Producing 9 7 - - 1,283 992 - -
Developed
Non-producing - - - - 683 525 - -
Undeveloped 44 36 - - 596 468 - -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED 53 43 - - 2,562 1,985 - -
PROBABLE 26 21 - - 4,445 3,410 - -
----------------- ------------ ------------ -------------- -------------
TOTAL PROVED PLUS
PROBABLE 79 65 - - 7,006 5,395 - -
----------------- ------------ ------------ -------------- -------------
----------------- ------------ ------------ -------------- -------------


NET PRESENT VALUES OF FUTURE NET REVENUE
-----------------------------------------------------------
BEFORE INCOME AFTER INCOME
U.S. TAXES DISCOUNTED AT TAXES DISCOUNTED AT
PROPERTIES (% per year) (% per year)
---------------------------- ------------------------------
RESERVES 0 5 10 15 20 0 5 10 15 20
CATEGORY (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$) (MM$)
----------- ----------------------------- ------------------------------
PROVED
Developed
Producing 12.4 11.3 10.4 9.7 9.1 8.1 7.4 6.8 6.3 5.9
Developed
Non
-producing 6.7 5.6 4.8 4.2 3.7 4.2 3.5 3.0 2.6 2.3
Undeveloped 5.9 4.9 4.2 3.7 3.2 3.7 3.1 2.6 2.3 2.0
----------- ----------------------------- ------------------------------
TOTAL PROVED 25.1 21.9 19.5 17.5 16.0 16.0 14.0 12.4 11.2 10.2
PROBABLE 40.9 27.8 20.1 15.3 12.1 25.7 17.4 12.6 9.5 7.5
----------------------------- ------------------------------
TOTAL PROVED
PLUS
PROBABLE 66.0 49.7 39.6 32.9 28.1 41.7 31.4 25.0 20.8 17.8
----------- ----------------------------- ------------------------------
----------- ----------------------------- ------------------------------

Notes:

1. "Gross" means the Company's total working interest (operating and
non-operating) share before deduction of royalties payable to others
and without including any royalty interests of the Company. "Net"
reserves means the total working interest (operating and
non-operating) share after deduction of royalty obligations plus the
Company's royalty interests in reserves. Other definitions, including
reserve categories, are as defined in National Instrument 51-101.
2. Columns may not add due to rounding.


Pricing Assumptions

The following sets for the benchmark reference prices, as at September 30, 2005, reflected in the reserves information. These price assumptions were provided to the Corporation by AJM.



SUMMARY OF PRICING ASSUMPTIONS
AS OF SEPTEMBER 30, 2005
CONSTANT PRICES AND COSTS

OIL (1) NATURAL GAS (1)
----------------------------------- ---------------------
Edmonton
WTI Par Price
Cushing 40 degrees Hardisty AECO NYMEX
Oklahoma API Lloyd Blend Gas Price Gas Price
YEAR ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/Mcf) ($US/Mcf)
---------- ----------------------------------- ----------------------
2005(2)(3) 66.24 79.30 47.51 13.13 14.50
---------- ----------------------------------- ----------------------
---------- ----------------------------------- ----------------------


NGL's (1)
------------------------------------------
Edmonton Edmonton Edmonton
Par Price Par Price Par Price
Propane Butane Condensate
YEAR ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
---------- ------------------------------------------
2005(2)(3) 63.44 51.54 83.26
---------- ------------------------------------------
---------- ------------------------------------------

Notes:

(1) These summary tables identify benchmark reference pricing schedules
that might apply to a reporting issuer.
(2) The exchange rate used to generate the benchmark reference prices in
these tables is 0.8613 $US/$Cdn.
(3) As at September 30.


SUMMARY OF PRICING AND INFLATION RATE ASSUMPTIONS
AS OF SEPTEMBER 30, 2005
FORECAST PRICES AND COSTS

OIL NATURAL GAS
------------------------------------ ----------------------
Edmonton
WTI Par Price
Cushing 40 degrees Hardisty AECO NYMEX
Oklahoma API Lloyd Blend Gas Price Gas Price
YEAR ($US/bbl) ($Cdn/bbl) ($Cdn/bbl) ($Cdn/Mcf) ($US/Mcf)
-------- ------------------------------------ ----------------------
Forecast
2005 65.00 75.60 50.60 12.00 12.00
2006 65.00 78.40 53.40 11.00 10.00
2007 64.25 77.50 52.50 10.00 9.20
2008 62.45 75.30 50.30 8.90 8.30
2009 61.55 74.20 49.20 9.20 8.50
2010 59.55 71.80 46.80 9.35 8.65
2011 55.25 66.50 41.50 9.60 8.85
2012 56.35 67.85 42.85 9.80 9.00
2013 57.45 69.20 44.20 10.00 9.20
2014 58.60 70.60 45.60 10.20 9.35
2015 59.80 72.05 47.05 10.45 9.55
2016 60.95 73.50 48.50 10.70 9.75
2017 62.20 75.00 50.00 11.00 9.95
2018 63.45 76.50 51.50 11.20 10.15
2019 64.65 78.00 53.00 11.40 10.35
2020 65.95 79.60 54.60 11.70 10.55
2021 67.30 81.25 56.25 12.00 10.80
2022 68.65 82.85 57.85 12.20 11.00
2023 70.00 84.50 59.50 12.40 11.20
2024 71.45 86.30 61.30 12.75 11.45
2025+ 2.0% 2.0% 2.0% 2.0% 2.0%
-------- ------------------------------------ ----------------------
-------- ------------------------------------ ----------------------


NGL's
------------------------------------------
Edmonton Edmonton Edmonton
Par Price Par Price Par Price
Propane Butane Condensate
YEAR ($Cdn/bbl) ($Cdn/bbl) ($Cdn/bbl)
--------- ------------------------------------------
Forecast
2005 49.15 60.50 79.40
2006 50.95 62.70 82.30
2007 50.40 62.00 81.40
2008 48.95 60.25 79.05
2009 48.25 59.35 77.90
2010 46.65 57.45 75.40
2011 43.25 53.20 69.85
2012 44.10 54.30 71.25
2013 45.00 55.35 72.65
2014 45.90 56.50 74.15
2015 46.85 57.65 75.65
2016 47.80 58.80 77.20
2017 48.75 60.00 78.75
2018 49.75 61.20 80.35
2019 50.70 62.40 81.90
2020 51.75 53.70 83.60
2021 52.80 65.00 85.30
2022 53.85 66.30 87.00
2023 54.95 67.60 88.75
2024 56.10 69.05 90.60
2025+ 2.0% 2.0% 2.0%
--------- ------------------------------------------
--------- ------------------------------------------

Notes:

(1) Inflation rates (for forecasting prices and costs) increasing at the
rate of 2% per year.
(2) Exchange rates (used to generate the benchmark reference prices in
these tables) remaining constant at 0.85.


BOE Presentation

The term barrels of oil equivalent (BOE) may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf : 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. All BOE conversions in this press release are derived by converting gas to oil in the ratio of six Mcf of gas to one Bbl of oil.

Sharon Energy Ltd. is a junior oil and gas company currently conducting active natural gas exploration programs in Texas and Alberta.

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)