Stonefire Energy Corp.
TSX VENTURE : SFE.A
TSX VENTURE : SFE.B

Stonefire Energy Corp.

May 25, 2006 09:30 ET

Stonefire Energy Corp. Announces First Quarter Results

CALGARY, ALBERTA--(CCNMatthews - May 25, 2006) - Stonefire Energy Corp. (the "Corporation" or "Stonefire") (TSX VENTURE:SFE.A) (TSX VENTURE:SFE.B) is pleased to announce that it has filed on SEDAR its unaudited financial statements and related management discussion and analysis ("MD&A") for the period ended March 31, 2006. Selected operational and financial results are outlined below and should be read in conjunction with Stonefire's unaudited financial statements and related MD&A which can be found at www.sedar.com.

FIRST QUARTER HIGHLIGHTS:

- Stonefire's team of experienced and dedicated professionals commenced generating and identifying prospects in the Edson Exploration Area.

- Stonefire's initial public offering closed on March 15, 2006 with gross proceeds of $11.0 million.

- The Class A shares and the Class B shares commenced trading on the TSX Venture Exchange on March 22, 2006 under the symbols SFE.A and SFE.B.

- Stonefire re-completed one standing cased well to earn interest in four sections of land in the Edson area.

- The Corporation spudded its first exploration well on March 29, 2006. The well was cased and completed in Q2 as a natural gas well resulting in the Corporation's first new pool discovery.

- Acquired 1.5 net sections of Crown land, bringing Stonefire's net land position to 2,240 acres in the Edson area at March 31, 2006.

OUTLOOK

Mid-way through Q2 Stonefire's land base in the Edson area has increased to over 5,100 net acres of land, a drilling rig has been secured and Stonefire is finalizing preparations for a four-well exploration drilling program starting in June 2006.

Stonefire is looking forward to an exciting exploration drilling program expected to commence in June. The Corporation's prospect inventory and land base continue to grow in the Edson Exploration Area, driven by the efforts and skill of Stonefire's exploration staff. Field operations are being successfully conducted in spite of an extremely tight market for all oilfield services, a testament to the expertise and resourcefulness of Stonefire's operations staff.

As referred to above, to view a full copy of the Corporation's unaudited interim financial results for the period ended March 31, 2006, including the Corporation's unaudited financial statements and accompanying MD&A, please refer to the SEDAR website at www.sedar.com.

Statements in this document may contain forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied. Such forward-looking statements necessarily involve risks associated with oil and natural gas exploration, property development, production, marketing and transportation, such as dry holes and non-commercial wells, facility and pipeline damage, loss of markets, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other producers and the ability to access sufficient capital from internal and external sources. Readers are cautioned not to place undue reliance on forward-looking statements, as no assurances can be given as to future results, levels of activity or achievements.

To request a free copy of Stonefire's interim report or if you would like to be put on Stonefire's mailing list please contact Ronald Williams, Vice President, Finance and CFO at rwilliams@stonefire-energy.com.


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

Contact Information

  • Stonefire Energy Corp.
    Mr. Richard Dahl
    President and CEO
    (403) 262-9885
    (403) 262-9887 (FAX)
    or
    Stonefire Energy Corp.
    Mr. Ronald Williams
    Vice President, Finance and CFO
    (403) 262-9885
    (403) 262-9887 (FAX)