The Buffalo Oil Corporation

The Buffalo Oil Corporation

March 14, 2005 15:04 ET

The Buffalo Oil Corporation Completes Equity Financing


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: THE BUFFALO OIL CORPORATION

TSX VENTURE SYMBOL: BFO

MARCH 14, 2005 - 15:04 ET

The Buffalo Oil Corporation Completes Equity Financing

CALGARY, ALBERTA--(CCNMatthews - March 14, 2005) - The Buffalo Oil
Corporation (TSX VENTURE:BFO) ("Buffalo") is pleased to announce that it
completed its previously-announced brokered private placement equity
financing. In connection with the offering, Northern Securities Inc., as
underwriter, exercised in full their over-allotment option to acquire an
additional 1,166,667 common shares at the offering price of $1.20 per
share. The maximum offering of 4,772,990 common and flow-through common
shares was fully subscribed and Buffalo received aggregate gross
proceeds of $5,900,000 from the financing.

Buffalo is now debt free, has approximately $3.8 million on deposit with
its bank, and has 13.2 million common shares issued and outstanding.

Net proceeds from the equity financing will be used to fund the 2005
drilling program, primarily in the Peace River Arch and at Frog Lake,
Alberta and in south-east Saskatchewan. Buffalo has generated numerous
drilling prospects on its undeveloped lands in the Peace River Arch,
Alberta, where it holds an average 80% working interest in approximately
12,000 gross acres. The first well in the Peace River Arch is scheduled
to be drilled at Cecil in the second quarter of 2005. In addition,
Buffalo will continue to drill to earn working interests at Frog Lake
through various farm-in agreements. Two 100% WI oil wells were drilled
in December 2004 at Frog Lake and are producing at a combined rate of
120 bopd and a gas well, drilled earlier in 2004, is now on production
at a gross rate of 400 mcfd (37.5% WI). In February 2005, Buffalo
participated for a 25% working interest in drilling another oil well at
Frog Lake which should be completed and placed on production before
Spring breakup.

Buffalo is a new Canadian junior oil and gas company engaged in the
exploration, development and production of oil and gas reserves in the
provinces of Alberta and Saskatchewan.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    The Buffalo Oil Corporation
    Trevor Penford
    (403) 252-2462
    Email: tpenford@buffalo-oil.com
    or
    The Buffalo Oil Corporation
    William (Bill) Trickett
    (403) 252-2462
    (403) 252-1399 (FAX)
    Email: btrickett@buffalo-oil.com
    or
    The Buffalo Oil Corporation
    Suite 211, 7710 - 5th Street S.E.,
    Calgary, Alberta T2H 2L9
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this press release.