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Message: Announces Year End Results and Statement of Reserves Data
| April 30, 2009 |
| Kroes Energy Inc. Announces Year End Results and Statement of Reserves Data |
| CALGARY, ALBERTA--(Marketwire - April 30, 2009) - Kroes Energy Inc ("Kroes"), (TSX VENTURE:KRS) announced today that cash flow from operations in 2008 was $428,328, a significant improvement from the deficit in 2007 of $165,810. Reserves increased from 85.4 Mboe in 2007 to 178.9 Mboe in 2008 from drilling and acquisition. Production averaged 107 boe per day compared with 54 boe per day produced in 2007. Capital expenditures for the year totaled $2,176,916 compared with $1,323,395 spent in 2007. The Company spent $1,551,107 on its exploration and development program for shallow gas and $611,529 on its Belly River gas play at Brewster and $14,280 on other assets. Kroes completed the acquisition of Vecta Energy Corporation, ("Vecta") on July 30, 2008. This acquisition gave Kroes access to relatively low risk but high reward prospects in the Brewster area of the Deep Basin. Two wells have been drilled (discussed below) that prove this concept. The Company has numerous other 3D prospects inventoried in this area along with Crew Resources ("Crew"), the operator. These prospects will be drilled as the gas market rebounds. The acquisition also gives Kroes an expanded exploration capability as a result of its relationship with Vecta Oil & Gas in the U.S., ("Vecta U.S."). Vecta U.S. has opened a Denver office with several world class geoscientists and Kroes unique contractual arrangement with Vecta U.S. allows Kroes a non cash method to develop its prospects without incurring capital outlays. Oil and Gas Reserves The Company's share of oil and gas reserves was evaluated by Paddock Lindstrom and Associates Ltd. at December 31, 2008 and the details of this evaluation are provided in the Company's NI 51-101 Statement of Oil and Gas Reserves. Oil and Gas Drilling and Completion Activity Kroes drilled 8 wells with Montane Resources Ltd. ("Montane") under its Joint Venture Agreement with Montane as operator. Five of the wells are producing, two are suspended awaiting further evaluation and one was a dry hole. Crew, the operator in the Brewster area, drilled two wells to the Belly River formation resulting in a producing gas well at 15-11-43-13 W5 and a probable gas producer at 8-22-43-13 W5. The 15-11 well has produced 6,700 boe net to Kroes (40,000 mmcf of gas) as of December 31, 20008, and is currently producing about 14 boe/d net to Kroes (83 mcf/d of gas). The 8-22 well was drilled and cased and is awaiting completion, pipeline construction and connection. The operator has informed Kroes that they plan to complete the well and the pipeline in Q4, 2009. Crew also is planning to reenter and undertake a completion attempt in the Viking in a previously drilled well in 11-22-43-13 W5 at the same time as the 8-22 completion. Several other Belly River tests based on 3D seismic have been identified and will be drilled subject to additional financing and improved gas prices. Kroes is contemplating activity in Q4 in the area surrounding its shut in well at 12-15-42-13 W5. Several potential gas producing zones have been identified behind pipe. Kroes is currently evaluating economics with respect to this play. However, it is unlikely Kroes will participate in any drilling activity until natural gas prices improve significantly. Kroes has filed its 2008 Financial Statements, MD&A, CEO and CFO Certificates and NI 51-101 (F1, F2, F3) with the securities regulatory authorities in Canada. These filings are available for review at www.sedar.com. BOE's may be misleading, particularly if used in isolation. A BOE conversion ratio of 6MCF:1Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. |
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