PYR Pyr Energy Corp

DENVER, Nov. 29 /PRNewswire-FirstCall/ -- PYR Energy Corporation (AMEX:PYR) today announced audited financial results for its fiscal year ended August 31, 2005 ("2005"). The Company recorded increased production, operating cash flow, revenues, and proved reserves for 2005, as well as net income of approximately $12,000 or 0 cents ($0.00) per common share, compared with a loss of approximately $1.4 million, or 5 cents ($0.05) per common share for its 2004 fiscal year. Net income was impacted by a non-cash impairment of $0.580 million related to Canadian properties. Excluding the non-cash impairment, net income for 2005 would have been $592,000 or 2 cents ($0.02) per share. Net cash from operations increased approximately $3.016 million in 2005 from cash used in operating activities of $1.087 million in FY 2004 to net cash provided by operating activities of $1.929 million in FY 2005. During the fiscal year ended August 31, 2005, the Company recorded $6.102 million in revenues from the sale of oil and natural gas production. Net of lease operating expenses, taxes, and net profits expenses of $2.447 million, the Company reflected $3.655 million in net operating income from oil and gas operations, excluding non-cash charges totaling $1.465 million for accretion, depletion, and impairment. During FY 2004, the Company recorded $0.863 million in revenues from the sale of oil and natural gas production. In FY 2004, net of lease operating expenses and taxes of $0.335 million, the Company reflected $0.528 million in net operating income from oil and gas operations, excluding non-cash charges of $0.260 million for depletion and accretion expenses. Net revenues from oil and gas production increased by 592% from 2004 to 2005, due to both increased production and product prices. Net production for fiscal year 2005 totaled 765,799 Mcfe compared with 144,111 Mcfe for 2004, resulting in an increase of 431%. 2005 production received an average price of $7.96 per mcfe, compared with an average price realization of $5.99 per mcfe in 2004, resulting in an average price increase of 33% from 2004 to 2005. As of August 31, 2005, net production was approximately 3.02 MMcfe per day compared to 1.42 MMcfe per day for August 31, 2004, resulting in an approximately 113% increase. Lease operating expenses increased from $0.335 million in 2004 to approximately $1.104 million in 2005. This increase is attributed to the addition of new wells in 2005, as well as a full year of lease operating expenses on properties acquired from Venus Exploration. During fiscal year ended August 31, 2005, the Company also accounted for net profits expenses of approximately $1.343 million attributed to wells, reaching payout in 2005, which were part of the Net Profits Interest retained by the Venus Exploration Trust. During 2005, the Company recorded a non-cash accounting impairment of approximately $0.580 million of its initial oil and gas investment in Canada as the book value of the properties exceeded the estimated fair market value of such properties. August 31, 2005 estimates of total proved reserves were 7.064 Bcfe, which represents a 28% increase compared with May 31, 2004 estimates of 5.502 Bcfe. The increased estimates for total proved reserves result primarily from new PDP and PUD additions related to drilling on a number of properties in Texas and Oklahoma. For the year ended August 31, 2005, proved developed producing reserves are estimated at 3.908 Bcfe, proved developed non-producing reserves are estimated at 0.459 Bcfe, and proved undeveloped reserves are estimated at 2.697 Bcfe. At August 31, 2005, present value, discounted at 10% ("PV-10"), is $28.7 million for total estimated proved reserves, as compared with PV-10 at August 31, 2004 of $11.0 million for estimated total proved reserves. This increase in present value is a reflection of higher product prices at fiscal year end plus reserve additions and revisions. At August 31, 2003, the Company had no proved reserves on its books. At August 31, 2005, the Company had cash of $2.934 million, total assets of $18.086 million, current liabilities of $2.658 million, and stockholders' equity of $8.177 million, with 31.640 million common shares outstanding. Subsequent to August 31, 2005, the Company completed a Private Equity Placement consisting of the sale of 6.328 million shares of common stock at a price of $1.30 per share to a group of institutional and accredited individual investors. Net proceeds from this placement of approximately $8.158 million will be used principally for costs associated with the Company's drilling portfolio. Commenting on the year-end results, Scott Singdahlsen, President and Chief Executive Officer of the Company, stated: "We are extremely pleased with our progress during 2005 to increase daily production, cash flow, and reserves. Our resultant positive cash flow will help us to progressively fund more and more drilling opportunities. Our current drilling portfolio of development and exploration wells should allow us to continue our growth into 2006 and beyond." Denver based PYR Energy is an independent oil and gas company primarily engaged in the exploration for and the development and production of natural gas and crude oil. At the current time, PYR's activities are focused in select areas of the Rocky Mountain region, East Texas, and the Gulf Coast. Additional information about PYR Energy Corporation can be accessed via the Company's web site at http://www.pyrenergy.com/. This release contains forward-looking statements regarding PYR Energy Corporation's future plans and expected performance based on assumptions the Company believes to be reasonable. A number of risks and uncertainties could cause actual results to differ materially from these statements, including, without limitation, the success rate of exploration efforts and the timeliness of development activities, fluctuations in oil and gas prices, and other risk factors described from time to time in the Company's reports filed with the SEC. In addition, the Company operates in an industry sector where securities values are highly volatile and may be influenced by economic and other factors beyond the Company's control. This press release includes the opinions of PYR Energy and does not necessarily include the views of any other person or entity. This release may not have been reviewed or approved by the operator and/ or participants in any of the projects discussed. DATASOURCE: PYR Energy Corporation CONTACT: Scott Singdahlsen, President of PYR Energy Corporation, +1-303-825-3748, fax +1-303-825-3768 Web site: http://www.pyrenergy.com/

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