CALGARY, Nov. 1 /CNW/ - Kroes Energy Inc. (TSX Venture: KRS) today announced that development well No. 303 in the Lelyaki oilfield, Ukraine has commenced drilling and is currently at 300 meters toward a total drilled depth of approximately 2,000 meters. The well is designed to produce from the main P1 - P2 sands and will be deviated at 75 degrees from vertical through the producing horizon in order to extend the producing interval by four-fold. Fred Callaway, President of Kroes, stated "the drilling of this well confirms the aggressive approach the Joint Venture is now taking to field development. This will be the fourth well drilled in 2005 and we expect a similar four-well program in 2006." Meanwhile, Kroes also announced that development well No. 301 has now been placed on production in the deeper K1 zone. As announced in September, the well produced 183 barrels per day (bpd) on test (82 bpd net to Kroes). Stabilized production rates will be reported in a few weeks. Excluding the results of this well, the Company's net production in the Lelyaki oilfield is averaging 265 bpd. Kroes has a 45% interest in the Kashtan Petroleum Joint Venture that has the license to operate the Lelyaki oilfield. 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