PYR
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ENERGY
CORPORATION
NEWS RELEASE
July 15, 2005
PYR ENERGY REPORTS QUARTERLY FINANCIAL RESULTS
PROVIDES OPERATIONAL UPDATE
DENVER - PYR Energy Corporation (AMEX:PYR) today announced financial
results for the three months ended May 31, 2005. The Company recorded a net loss
of $314,973 or $(0.01) per common share for the quarter compared with a net loss
of $391,890 or ($0.02) per common share for the three months ended May 31, 2004.
The net loss for the quarter resulted, in large part, from a one time non-cash
accounting impairment of approximately $580,000 related to the exit from certain
Canadian projects and operations. For the quarter, the Company had record
production and oil and gas revenues.
During the quarter ended May 31, 2005, the Company recorded $1,637,202 in
total oil and gas revenues. Of this amount, we recorded $748,391 from the sale
of 104,033 mcf of natural gas for an average price of $7.19 per mcf, and
$888,811 from the sale of 17,482 bbls of hydrocarbon liquids for an average
price of $50.84 per bbl. During the quarter ended May 31, 2004, we recorded
$184,550 in total oil and gas revenues. Of this amount, we recorded $60,787 from
the sale of 11,435 mcf of natural gas for an average price of $5.32 per mcf and
$123,762 from the sale of 3,362 bbls of hydrocarbon liquids for an average price
of $36.81 per barrel. Lease operating expenses during the quarters ended May 31,
2005 and May 31, 2004, respectively, were $283,851 and $77,958. Resulting net
revenues from oil and gas production were $1,353,351and $106,593 respectively
for the quarters ended May 31, 2005 and 2004.
Net production for the quarter ended May 31, 2005 totaled 208,925 Mcfe
compared to 157,343 Mcfe for the previous quarter. Comparing the quarters ended
May 31, 2005 and February 28, 2005, net production increased by 33%, while net
revenues, from oil and gas production, increased by 37%. These increases are
primarily a result of increased production related to reaching payout status on
the Maness GU#1 well in Jefferson County, Texas combined with a slight increase
in average gas prices during the quarter. Lease operating expenses (LOE) per
producing Mcfe averaged $1.36 for the quarter.
At May 31, 2005, the Company had cash of $3,971,213, oil and gas
receivables of $2,227,978, current liabilities of $2,610,152, total assets of
$17,812,817, and stockholders equity of $7,925,429. There were 31,625,259 common
shares outstanding at May 31, 2005.
Commenting on the quarterly results, Scott Singdahlsen, President and
CEO, stated, "PYR Energy is proud to have recorded its fourth consecutive
quarter of double digit growth in production and revenue. We have built a strong
foundation upon which our current drilling program of development wells and new
projects should continue to provide success into the future."
Operational Update:
At the Nome Field in Jefferson County, Texas, the Sun Fee #1-ST well has
continued to produce at better than expected rates. The well has cumulative
production in excess of 5.2 Bcfe through mid-June while exhibiting minor
declines in productivity and flowing tubing pressures. As a result of the Sun
Fee well performance, the Company has proposed to drill an offset well (Tindall
#1), located approximately 1600 feet to the east of the Sun Fee #1-ST, within
the same fault block. The Company owns a 77.08% working interest in the proposed
well location. It is anticipated that the Tindall #1 well will be drilled in
late-summer 2005.
At the Constitution Field in Jefferson County, Texas, the Maness GU#1 well
continues to produce at an approximate rate of 5 MMcfe per day. The operator is
planning to drill an offset development well and the Company will participate in
the drilling with a 12.5% working interest. It is anticipated that the well will
be drilled within the next few months.
At the Tortuga Grande project in Smith County, Texas, the Chisum #1 well
continues to drill ahead toward a projected total depth of approximately 14,000
feet. The Company is participating in the drilling of the well with a 28.57%
working interest.
At the Mallard project in Uinta County, Wyoming, a drilling rig has been
contracted, and it is anticipated that the #1-30 Duck Federal well, suspended
last year, will be re-entered and drilled to test the southern end of the
Whitney Canyon Field. It is anticipated that the drilling rig will move on
location by mid-August. The Company will participate in the re-entry and
drilling activity with a 28.75% working interest. The Company and its partners
will also participate, this summer, in the acquisition of approximately 20
square miles of 3D seismic data over the Mallard prospect to help delineate
additional drilling opportunities.
At the Rogers Pass project in the Montana Foothills, the Flesher Pass
#14603-12 well has reached total drilling depth of approximately 16,000 feet,
and is currently being evaluated. The Company has retained a 12.5% overriding
royalty interest in the project.
On Monday August 8, 2005, PYR will hold its Annual Meeting for stockholders
at 10:00 a.m. MST at Wells Fargo Bank, 1740 Broadway, Denver, Colorado.
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 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.
Contact: 1675 Broadway, Suite 2450
Scott Singdahlsen, President Denver, CO 80202
Tucker Franciscus, VP Phone: 303.825.3748
Fax: 303.825.3768