TriLoch Resources Inc.

TriLoch Resources Inc.

March 14, 2005 07:30 ET

TriLoch Announces Increased Reserves


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRILOCH RESOURCES INC.

TSX VENTURE SYMBOL: TLR.A
TSX VENTURE SYMBOL: TLR.B

MARCH 14, 2005 - 07:30 ET

TriLoch Announces Increased Reserves

CALGARY, ALBERTA--(CCNMatthews - March 14, 2005) - TriLoch Resources
Inc. (TSX VENTURE:TLR.A) (TSX VENTURE:TLR.B) (the "Company") announces
net petroleum and natural gas reserve additions of 5,466,000 boe for the
year ended December 31, 2004. This total consists of 3,332,000 boe
proved and 2,134,000 boe probable and is split 35 percent oil and 65
percent natural gas. The Company drilled 50 wells (39.0 net) in 2004.

Reserve additions in the year outstripped production by 14.8 times and
proved and probable reserves at December 31, 2004 were 4.6 times higher
than those reported a year earlier.

TriLoch retained AJM Petroleum Consultants ("AJM") to conduct the
evaluation of the Company's petroleum and natural gas reserves as at
December 31, 2004. The report was compiled pursuant to the guidelines of
National Instrument 51-101. Comparative figures for 2003 were reported
by a different evaluator.



Reserves are summarized in the following tables:

Company Gross Reserves as at December 31, 2004
-------------------------------------------------------------- -------
Light & Natural
Medium Natural Gas 2004 2003
Oil Gas Liquids Total Total
mbbls mmcf mbbls mboe mboe
------- ------- ------- ------- -------
Proved producing 510 5,550 33 1,468 586
Proved non-producing 24 3,713 2 645 397
Proved undeveloped 832 5,924 14 1,833 -
------- ------- ------- ------- -------
Total proved 1,366 15,187 49 3,946 983
Probable 947 9,747 15 2,586 452
------- ------- ------- ------- -------
Proved + probable 2,313 24,934 64 6,532 1,435
------- ------- ------- ------- -------
------- ------- ------- ------- -------



Forecast Net Revenue (Before Income Tax) as at December 31, 2004
----------------------------------------------------------------------
$000s, discounted at 0% 10% 15%
-------- ------- -------

Proved producing 36,345 29,395 26,947
Proved non-producing 11,938 8,565 7,482
Proved undeveloped 31,164 19,124 15,239
-------- ------- -------
Total proved 79,447 57,084 49,668
Probable 50,109 23,700 17,289
-------- ------- -------
Proved + probable 129,556 80,784 66,957
-------- ------- -------
-------- ------- -------


Future prices used in the forecast of net revenue in the table above
are based on those estimated by AJM as at December 31, 2004 as
summarized below:

Forecast of Future Prices
-----------------------------------------------------------------------
Oil Oil Natural Gas
WTI Edmonton Par AECO Spot
Year $US/bbl $CDN/bbl $CDN/gj
---- --------- ------------- -------------

2005 42.00 51.40 7.00
2006 40.80 49.85 6.90
2007 39.55 48.30 6.90
2008 38.20 46.65 6.50
2009 36.80 44.90 6.25
2010 35.35 43.05 5.90
2011 36.05 43.95 6.05
2012 36.80 44.85 6.20
2013 37.50 45.75 6.30
2014 38.25 46.70 6.50
2015 39.00 47.65 6.65
2016 39.80 48.60 6.75
2017 40.60 49.60 6.95
2018 41.40 50.60 7.05
2019 42.20 51.65 7.25
2020 43.05 52.70 7.45
2021 43.95 53.80 7.55
2022 44.80 54.90 7.75
2023 45.70 56.00 7.95
2024 46.60 57.15 8.15
Thereafter, annual change 2.0% 2.0% 2.0%


Reserve Reconciliation
-----------------------------------------------------------------------
Light & Natural
Medium Natural Gas
Oil Gas Liquids Total
mbbls mmcf mbbls mboe
-------- -------- -------- -------
Proved
January 1, 2004 335 3,777 19 983
Operational additions 1,126 12,135 27 3,176
Acquisition additions - - - -
Revisions 1 858 12 156
Production (96) (1,583) (9) (369)
------- ------- ------- -------
December 31, 2004 1,366 15,187 49 3,946

Probable
January 1, 2004 143 1,802 8 452
Operational additions 883 7,202 7 2,089
Acquisition additions - - - -
Revisions (79) 743 - 45
Production - - - -
------- ------- ------- -------
December 31, 2004 947 9,747 15 2,586

Proved + probable
January 1, 2004 478 5,579 27 1,435
Operational additions 2,009 19,337 34 5,265
Acquisition additions - - - -
Revisions (78) 1,601 12 201
Production (96) (1,583) (9) (369)
------- ------- ------- -------
December 31, 2004 2,313 24,934 64 6,532
------- ------- ------- -------
------- ------- ------- -------


Most of the proved undeveloped and probable reserves in the light and
medium oil category relate to incremental recoveries of oil due to
planned water injection and pressure maintenance in three of the
Company's oil pools. Most of the proved non-producing natural gas
reserves relate to the Company's 30 well (25.2 net) Second White Specks
program drilled in late 2004 and placed on production in early 2005.
Details of that program were announced previously. Most of the proved
undeveloped and probable natural gas reserves are associated with the
Company's plans to drill additional wells to develop the Second White
Specks formation.

Finding costs are derived by dividing all exploratory and development
costs incurred in a period by the proved and probable reserves added in
that period. The costs are further adjusted to include the provision for
asset retirement and any future development activity required to place
the reported reserves on production.

The average finding costs for 2004 are $6.18 per proved + probable boe
and $8.44 per proved boe. The corresponding amounts from inception in
2002 to December 31, 2004 are $8.16 and $11.58.

Cautionary Statements

Certain statements in this document or incorporated herein by reference
may constitute "forward-looking statements". These forward-looking
statements can generally be identified as such because of the context of
the statements including words such as the Company "believes",
"anticipates", "expects" or words of a similar nature. Such
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company, or industry results, to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Such factors include, among others, the following: general economic and
business conditions which will, among other things, impact demand for
and market prices of the Company's products; industry capacity; the
ability of the Company to implement its business strategy, including
exploration and development activities; the ability of the Company to
complete its capital programs; successful negotiations with bankers and
other third parties; the success of exploration and development
activities; production levels; government regulations and the
expenditures required to comply with them (especially safety and
environmental laws and regulations); site restoration costs; and other
circumstances affecting revenues and expenses.

Disclosure provided herein in respect of boe units may be misleading,
particularly if used in isolation. A boe conversion ratio of 6 mcf of
natural gas to 1 bbl of crude oil is based on an energy equivalency
conversion method primarily applicable at the burner tip and does not
represent a value equivalency at the wellhead.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    TriLoch Resources Inc.
    Allan E. Spurgeon
    Chairman and CEO
    (403) 920-0455
    or
    TriLoch Resources Inc.
    James N. McIndoe
    President and COO
    (403) 920-0455
    (403) 920-0457 (FAX)
    Website: www.triloch.com
    or
    TriLoch Resources Inc.
    2200, 444 - 5th Avenue S.W.
    Calgary, Alberta T2P 2T8
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.