Kroes Energy announces normal course issuer bid and drilling update

CALGARY, July 11 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced
today that it has received approval from the TSX Venture Exchange for a normal
course issuer bid to purchase up to 2,050,000 common shares, approximately 10%
of the Company's public float. The Directors have extended this issuer bid as
they believe the current share price is well below the Company's net asset
value.
The normal course issuer bid will be effective from July 13, 2005 until
July 12, 2006. Northern Securities has been retained to implement the share
repurchase program on behalf of the Company. The repurchase of shares will be
made at the sole discretion of the Company.
In other news, the Company reported that in its 45% owned joint venture
in Ukraine, development well 301 has reached 1,500 meters and intermediate
casing has been set. Well 301 is the first follow-up well to the successful
305 well that encountered 11 meters of high quality net pay in the K1
formation in the Lelyaki field earlier this year. Well 301 will continue
drilling to the K1 formation at 1,700 meters where testing and completion will
take place. Kroes also advised that preparations are underway to commence
development well 304 in the next few weeks, the second follow up to well 305.

Kroes Energy is a junior oil and gas producer and explorer with a major
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.

To receive company news releases via e-mail, please advise
heather(at)chfir.com and specify "Kroes Press Releases" in the subject line

%SEDAR: 00007855E