CALGARY, April 28 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) announced
today that its net profit for 2005 amounted to $806,414 compared to $756,834
in 2004. Cash from operations was $1,289,545, a gain of 25% from the prior
year.
Average production in 2005 was up slightly at 246 barrels per day (bpd);
however, Kroes' share of volumes grew through 2005 to exit the year at 267 bpd
compared with 223 bpd at year-end 2004.
PetroGlobe Canada Ltd. recalculated the Company's reserves volumes at
December 31, 2005 for its 45% interest in the Ukrainian joint venture Kashtan
Petroleum Ltd. The volume of proved and probable reserves totaled 10.2 million
barrels, some 20% lower than a year ago due to lower than anticipated
production from wells in the northwest part of the field and reduced oil
saturation in the K1 zone attic oil. Despite the decline in reserves volumes
and the significant new royalty imposed by the Ukrainian Government, the value
of Proved and Probable reserves, using a constant price and a discount rate of
10%, amounted to $67.8 million. This is only 14% lower than at year-end 2004,
yet still represents more than $2.00 per share of value.
President of Kroes Energy, Fred Callaway, said "Despite the decrease in
our reserves volumes, our production numbers are steady while net profit and
cash from operations continue to increase. In other encouraging news, activity
is now underway on our first shallow gas prospect in western Canada and we
look forward to positive results in 2006."
Kroes Energy also advises that it has filed its Annual Information Form
("AIF"), Financial Statements and Management's Discussion and Analysis for the
year ended December 31, 2005 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 NI51-101 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.
In other news, at a meeting on April 25, 2006, the Directors appointed
Stewart D. Gossen as Secretary of the Company to augment his duties as Vice
President, Corporate Development.
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
