Kingsmen Resources Ltd. press release

King Energy Inc. announces its year end March 31, 2005 results

2005-07-28

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CALGARY, July 28 /CNW/ - King Energy Inc. ("King) (TSXV:KNG) is pleased to present its financial and operating results for the 12 month period ended March 31, 2005.

Highlights:

Annual production averaged 150 boe/d, an increase of 35% over the year ended March 31, 2004.

Revenue for the year ended March 31, 2005 was $2,739,948, an increase of 93% over the year ended March 31, 2004.

Cash flow from operations for the year ended March 31, 2005 increased to $1,034,839 ($0.17 per share fully diluted) from $34,773 ($0.01 per share fully diluted) for the year ended March 31, 2004.

Net income for the year ended March 31, 2005 was $395,636 ($0.06 per share fully diluted) compared to a loss of $1,160,071 (loss of $0.22 per share fully diluted) for the year ended March 31, 2004.

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FINANCE Three Months Ended

($, except number of Jun 30 Sep 30 Dec 30 Mar 31 Total Total shares) 2004 2004 2004 2005 2005 2004

Petroleum & Natural Gas Sales 362,340 624,980 768,160 759,976 2,515,456 1,411,535 Other Income - - 50,881 164,611 215,492 - Total Revenue 362,340 624,980 819,041 924,587 2,730,948 1,411,535 Cash flow from operations 22,014 313,040 355,035 344,751 1,034,839 34,773 per share basic 0 0.06 0.06 0.06 0.018 0.01 Per share diluted 0 0.05 0.06 0.06 0.017 0.01 Net Income (loss) (127,190) 178,976 162,320 181,530 395,636 (1,160,071) per share basic (0.02) 0.03 0.03 0.03 0.07 (0.22) per share diluted (0.02) 0.03 0.02 0.03 0.06 (0.22)

OPERATIONS Three Months Ended ($/boe except daily Jun 30 Sep 30 Dec 30 Mar 31 Total Total production) 2004 2004 2004 2005 2005 2004 Daily production boe 94 146 188 169 150 111 Average price per boe 42.72 47.11 44.37 48.96 46.09 34.90 Operating expense per boe 14.21 9.02 9.33 12.48 10.91 13.88 Operating netback per boe (before G&A, interest and DD&A) 14.82 31.77 29.14 37.42 29.91 14.62

Notes:

Cash flow is used before changes in non-cash expenses to analyze operating performance. Cash flow does not have a standardized measure prescribed by Canadian Generally Accepted Accounting Principles and, therefore, may not be comparable with the calculations of similar measures for other companies.

"Boe" may be misleading, particularly if used in isolation. A boe conversion ratio of 6 mcf:1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. >>