Trimox Energy Inc.
TSX VENTURE : TRM.A
TSX VENTURE : TRM.B

Trimox Energy Inc.

August 24, 2005 08:30 ET

Trimox Energy Inc. Announces Second Quarter Results and Provides Operational Update

CALGARY, ALBERTA--(CCNMatthews - Aug. 24, 2005) - Trimox Energy Inc. ("Trimox" or the "Company") (TSX VENTURE:TRM.A) (TSX VENTURE:TRM.B) is pleased to provide an update on its activities for the three and six months ended June 30, 2005.

Second quarter activity focused on land acquisition, seismic activities and drilling and casing the first three wells of an eleven well program budgeted for 2005. Total capital expenditures for the six months ended June 30, 2005 were $2.9 million, resulting in working capital of $5.4 million at June 30, 2005. Capital expenditures for the balance of the year are estimated at $5.4 million.

Four wells were drilled and cased in July and August. For the balance of the year, Trimox will continue to build its prospect inventory through land and seismic activities, drill the remaining four wells in the 2005 program and complete and tie-in as many of the successful wells as possible. Current production of 15 barrels of oil equivalent per day ("Boepd") is expected to increase significantly by year-end. Results to date from the drilling program have been very encouraging, with test results from wells at Worsley and Retlaw exhibiting impressive initial production capability. The magnitude of the discoveries made to date continues to be assessed. In addition, the timing of production additions from the recently drilled wells will be dependent on the timing of tie-ins and equipping operations and on the finalization of transportation and processing arrangements.

Retlaw

Three Trimox operated wells were drilled in July at working interests varying between 50 - 100% resulting in one (0.5 net) Glauconitic gas well, one (1.0 net) potential Upper Mannville gas well and one (0.71 net) potential Glauconitic oil well and Sunburst gas well. The Glauconitic gas well was flow tested for three days at gas rates of approximately 1.0 million cubic feet ("Mmcf") per day at a flowing pressure of approximately 1230 pounds per square inch ("psi") with less than 7% effective reservoir drawdown. The remaining two wells are scheduled to be completed and tested over the next few weeks. The Company plans to drill one additional well in the Retlaw area during the fourth quarter and anticipate that all four wells will be on-stream by year-end.

Worsley

On the Peace River Arch, the Company operates and has a 30% working interest in 15 sections of land in the Worsley area where it has shot proprietary 3D seismic over the majority of the acreage. An initial Devonian gas well was drilled in June and subsequently completed and tested at stabilized rates exceeding 2.5 Mmcf per day at a flowing pressure of approximately 2350 psi with a 3% effective reservoir drawdown. A second gas well was drilled in July and subsequently completed and tested at stabilized rates exceeding 1.6 Mmcf per day at a flowing pressure of approximately 1650 psi with a 26% effective reservoir drawdown. The Company anticipates drilling the third well in September. The Company is currently planning to tie-in and equip these wells with the objective of commencing production from this area early in the first quarter of 2006.

Cecil / Boundary Lake

In this area, the Company acquired access to ten sections of land through a combination of Crown land sales and farm-ins. A shallow gas project has been identified and two Trimox operated pilot wells (1.0 net) were drilled in June. Both wells were completed in July, only one of which flowed gas at economic rates. Based on the results of the initial pilot wells, the Company has budgeted to drill an additional delineation well in 2006.

Niton

The Company will imminently commence drilling an operated well to evaluate a prospective trend identified on a recently shot proprietary 3D seismic survey. Here, the Company has a 75% working interest and access to ten sections of land adjacent to its successful 2004 re-entry. A second well is budgeted to follow immediately but is contingent on continued positive results.

Windfall

A well initially budgeted for drilling this summer has been postponed to the first quarter of 2006 due to significantly reduced costs associated with winter access.

Copies of the second quarter financial statements and related MD&A are available by request from Trimox and on the SEDAR website at www.sedar.com.

Trimox trades on the TSX Venture Exchange under the symbols "TRM.A" and "TRM.B".

This news release contains forward looking information. Such information is 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 in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.


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

Contact Information

  • Trimox Energy Inc.
    Steve Dabner
    President & C.E.O.
    (403) 216-1721
    steved@trimox.ca
    or
    Trimox Energy Inc.
    Thomas Love
    Chairman & C.F.O.
    (403) 216-1722
    toml@trimox.ca