Admiral Bay Resources Inc. has received an updated independent Gas Reserve Report from Questa Engineering Corporation of Golden Colorado. The report defines total net gas reserves as at August 31, 2005 of 311 Billion Cubic Feet (BCF), an increase of 217% from the previous report dated December 31, 2004.
As of August 31, 2005, only the Shiloh and Devon projects have Proved and Probable Reserves. As development continues on the other projects, current Possible Reserve estimates will be upgraded to either Proved or Probable Reserves. In the first eight months of operation in 2005, Admiral Bay has seen the reported Net Proved Reserves increase to 23.13 BCF from 3.414 BCF, an increase of 677%, the Net Probable Reserves increase to 9.61 BCF from 0.983 BCF, an increase of 977% and the Net Possible Reserves increase to 279.05 BCF from 138.923 BCF, or an increase of 200%.
As the Company continues to increase its acreage positions on its various projects, Possible Reserves will continue to increase. The Company currently holds approximately 140,000 acres and has set a target to increase its holding to 200,000+ acres by the end of 2006.
