PYR Pyr Energy Corp

Provides Operational Update DENVER, April 17 /PRNewswire-FirstCall/ -- PYR Energy Corporation (AMEX:PYR) today announced financial results for the three months ended February 28, 2006. The Company recorded net income of $175,000 or $0.00 per common share for the quarter compared with net income of $30,000 or $0.00 per common share for the three months ended February 28, 2005. During the quarter ended February 28, 2006, the Company recorded $2,069,000 in total oil and gas revenues. Of this amount, we recorded $1,251,000 from the sale of 174,903 mcf of natural gas for an average price of $7.15 per mcf, and $818,000 from the sale of 13,550 bbls of hydrocarbon liquids for an average price of $60.41 per bbl. During the quarter ended February 28, 2005, we recorded $1,196,000 in total oil and gas revenues. Lease operating expenses during the quarters ended February 28, 2006 and February 28, 2005, respectively, were $331,000 and $120,000. Resulting net cash provided by operating activities was $899,000 for the quarter ended February 28, 2006 compared to net cash used by operations of $393,000 for the same period in 2005. Lease operating expenses (LOE) per produced Mcfe averaged $1.29 for the second quarter 2006. Net production for the quarter ended February 28, 2006 totaled 256,203 Mcfe compared to 167,869 Mcfe for the quarter ended February 28, 2005, resulting in an increase of 53%. Comparing the quarters ended February 28, 2006 (2Q06) and November 30, 2005 (1Q06), net production increased by 25%, from 205,856 Mcfe, due to increased production in Oklahoma and to production rate increases after curtailment of two major gas wells caused by the effects of Hurricane Rita during the fall of 2005. At February 28, 2006, the Company had cash of $6,713,000, oil and gas receivables of $1,584,000, current liabilities of $2,881,000, total assets of $27,101,000, and stockholders equity of $16,779,000. There were 37,915,259 common shares outstanding at February 28, 2006. Operational Update: At the Mallard project in Uinta County, Wyoming, the #1-30 Duck Federal well has been drilled, completed, and is currently flowing to gas sales. Since initial production, the flow rate has been inhibited by surface facility and water disposal limitations that have not allowed stabilized production flow to occur to date. Currently, on a constrained 15% choke, the well is averaging 6 to 7 MMcf per day of gas production with 175 barrels of associated condensate and approximately 1000 barrels of water at a flowing casing pressure (up 7" casing) of approximately 1000 psi. As part of our processing agreement, the plant operator is disposing of the water. Production to sales commenced in mid-March, and as such, revenues and volumes from this well are not included in the current quarter's financial statement. We own a 28.75% working interest in the well and surrounding acreage. It is anticipated that PYR and the working interest partners will acquire approximately 20 square miles of 3-D seismic data during the summer of 2006 in order to better delineate additional drilling opportunities in the area. At the Wilburton Field in Oklahoma, the Scharff #5-1 well was recently drilled and completed in the Lower Atoka (Cecil) formation, which resulted in initial production rates of up to 54 MMcfe per day, and is currently producing at an average rate in excess of 40 MMcfe per day. The Scharff #6-1 is currently undergoing completion activities in the Upper Cecil and is expected to be opened to full sales shortly. The Scharff #7-1 has been permitted and is expected to begin drilling operations in mid-May, 2006. The Company owns a 2.42% working interest in the wells. In Smith County, Texas, the Chisum #1 well has been completed in the lower Rodessa section. Initial flow testing of the Rodessa indicated commercial production. The initial test rates were constrained by flow into a low pressure system, but yielded rates in excess of 750 Mcf per day with 40 plus barrels of associated condensate production at a flowing tubing pressure of 2200 psi. The well is currently being hooked up to a high pressure pipeline system for production to sales. It is anticipated that this activity will take a number of weeks and will result in improved production rates. Rodessa production, within 3 miles to the north and northeast of the Chisum location, has yielded cumulative production ranging up to 6.4 Bcfe per well. The Company anticipates drilling additional wells to fully exploit the Rodessa potential in the project area. We expect the next well to commence drilling sometime this summer and it is anticipated that a 3D seismic survey will be acquired to better delineate the additional drilling opportunities. The Company owns a 28.57% working interest in the Chisum well and surrounding acreage. In the Hansford field, located in the Texas panhandle, the Company has recently drilled and completed the Lackey GU #2 (100% WI). The well is currently flowing to sales as the well continues to clean up from fracture stimulation. The Lackey GU #1(100% WI) has been recently worked over, and is flowing back stimulation fluids and gas. Both wells are currently having artificial lift installed to increase flow rates of both stimulation fluids and gas production. Currently, the combined production from both wells, which we anticipate will continue to improve, is 600 Mcf per day. A drilling location has been constructed for the first well in the Bayou Duralde Project, located in Evangeline Parish, Louisiana. The Company will participate in the initial 11,000 foot exploration well at a 15% working interest to test potential gas reserves and production potential in Yegua/Cockfield channel complexes. It is anticipated that the initial well will spud within the next 45 days. The Company and its partners currently control approximately 3000 acres of leasehold in the project. Commenting on the quarterly and operational results, Scott Singdahlsen, President and CEO, stated, "Overall, we are pleased that our production is increasing again after the effects of Hurricane Rita. We are excited to have the Duck well flowing to sales as the production continues to gradually improve with strong flowing pressures. Initial indications of the Rodessa potential at the Tortuga project are very encouraging and we look forward to further development. Continued drilling in Oklahoma, the Texas panhandle, and at our Tortuga project in Smith County should allow for ongoing increases in reserves, production, and cash flow into the future." 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 and the Company's website contain 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 and the Company's website include the opinions of PYR Energy and does not necessarily include the views of any other person or entity. DATASOURCE: PYR Energy Corporation CONTACT: Scott Singdahlsen, President, or Tucker Franciscus, VP, both of PYR Energy Corporation, +1-303-825-3748, or fax, +1-303-825-3768 Web site: http://www.pyrenergy.com/

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