Kroes Energy announces 2004 results and filing of AIF containing reserves information

CALGARY, April 29 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced
today that its net profit for 2004 amounted to $756,834 compared to $1,019,116
in 2003 when a non-recurring net gain due to the sale of Canadian production
inflated the net profit by $364,000. Cash flow from operations was $1,031,222
compared with $1,266,379 in the prior year.
Production in 2004 averaged 241 barrels per day compared to 287 barrels
per day in 2003 when the Canadian properties contributed 30 barrels per day.
Production in Ukraine was down by an average of 15 barrels per day due to
several wells being shut in during the latter half of the year for mechanical
reasons. These wells have since been put back on stream along with two new
development wells that were put on permanent production late in April.
With respect to the agreement with NAK Naftogas for the acquisition of
the 55% of the Kashtan joint venture, as reported earlier the reorganization
of state agencies and companies in Ukraine continues, and Kroes has been
assured that Naftogas intends to honor that agreement.
PetroGlobe Canada Ltd. recalculated the Company's reserves volumes at
December 31, 2004 and the volume of Proved reserves totalled 9.2 million
barrels, some 2% lower than a year ago primarily due to production during the
year. The volume of Proved and Probable reserves totalled 12.8 million
barrels, 12% lower than the previous year due to the negative impact of an
unsuccessful 2004 exploration well in the northwest corner of the field. The
value of Proved and Probable reserves, using a constant price and a discount
rate of 10%, however, increased by 11% to $78.6 million due to higher crude
oil prices.
The Company has calculated its net asset value using these new reserves
values and it amounts to $2.40 per share, fully diluted.
Mr. Fred Callaway, President, said: "Production volumes in our Ukrainian
joint venture were off somewhat from our 2004 target, but production is now on
its way up with essentially all of the wells back on stream and the addition
of the significant new volumes late in April from well No. 305. Furthermore,
two follow-up wells to No. 305 are expected to get underway in the second
quarter."
Kroes Energy also advises that it has today filed its annual information
form (AIF) for the year ended December 31, 2004 on the System for Electronic
Document Analysis and Retrieval (SEDAR). The AIF contains the supplemental
disclosure, including detailed reserves information, as mandated and required
by Canadian Securities Administrators National Instrument 51-101. A copy of
the AIF as well as the Statements and Reports mandated by N151-101 can be
viewed on the Company's documents page at www.sedar.com and will be posted on
the Company's website www.kroesenergy.com.

Kroes Energy is a junior oil and gas producer and explorer participating
in the Lelyaki Oilfield redevelopment project in Ukraine, one of Eastern
Europe's fastest growing economies. Kroes has a strong management team, with
extensive international experience. Shares trade on the TSX Venture Exchange
under the symbol KRS.

FORWARD-LOOKING STATEMENTS
This disclosure contains certain forward-looking estimates that involve
substantial known and unknown risks and uncertainties, certain of which are
beyond Kroes' control, including: the impact of general economic conditions in
the areas in which the Company operates, industry conditions, changes in laws
and regulations including the adoption of new environmental laws and
regulations and changes in how they are interpreted and enforced, increased
competition, the lack of availability of qualified personnel or management,
fluctuations in commodity prices, foreign exchange or interest rates, stock
market volatility and obtaining required approvals of regulatory authorities.
In addition, there are risks and uncertainties associated with oil and gas
operations; therefore, Kroes' actual results, performance or achievement could
differ materially from those expressed in, or implied by, these forward-
looking estimates and, accordingly, no assurances can be given that any of the
events anticipated by the forward-looking estimates will transpire or occur,
or if any of them do so, what benefits, including the amounts of proceeds,
that Kroes will derive from that.
%SEDAR: 00007855E