TriLoch Resources Inc.

TriLoch Resources Inc.

February 24, 2005 14:26 ET

TriLoch Updates Operations at Enchant


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: TRILOCH RESOURCES INC.

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

FEBRUARY 24, 2005 - 14:26 ET

TriLoch Updates Operations at Enchant

CALGARY, ALBERTA--(CCNMatthews - Feb. 24, 2005) - TriLoch Resources Inc.
(TSX VENTURE:TLR.A) (TSX VENTURE:TLR.B) ("TriLoch") is pleased to report
30 Second White Specks ("2WS") natural gas wells drilled at Enchant in
Q4 2004 are tied-in and producing natural gas. The Company's average
working interest in these wells is 84 percent. Early production rates
are consistent with internal projections. Corporate production in
January was approximately 1,250 boed with February expected to average
over 1,500 boed. The Company has a contiguous land base of over 50
sections of prospective 2WS acreage with only 7.5 sections developed to
date. Up to 170 additional 2WS wells are planned over the next two years.

The Company drilled 50 wells (39.0 net) in 2004 with only two dry holes.
In addition, five wells (3.1 net) were drilled in the first two months
of 2005, resulting in three oil wells at Enchant and a natural gas
discovery in a new Southern Alberta exploration area for TriLoch.

The Company's 2005 capital budget of $26 million is expected to increase
production to 2,400 boed in December 2005, yield average 2005 sales of
1,800 boed, and generate $15 million in cash flow ($0.70 per share).
TriLoch has been focused and successful in unlocking the potential of
its 95 section contiguous core land block at Enchant. The current
business environment for oil and natural gas continues to be robust and
TriLoch is enjoying the benefits of solid production gains, all by the
drill bit.

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.

Cash flow from operations, which is determined before changes in
non-cash working capital, is used by the Company as a key measure of
performance. Cash flow from operations does not have a standardized
meaning prescribed by Canadian Generally Accepted Accounting Principles
("GAAP") and therefore may not be comparable with the calculation of
similar measures for other companies. Cash flow from operations as
presented is not intended to represent operating profits for the period
nor should it be viewed as an alternative to cash provided by operating
activities, net earnings or other measures of financial performance
calculated in accordance with GAAP. Cash flow from operations per share
is calculated using the same share bases which are used in the
determination of earnings per share.


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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.