PYR Pyr Energy Corp

Provides Operational Update DENVER, Jan. 18 /PRNewswire-FirstCall/ -- PYR Energy Corporation (AMEX:PYR) today announced financial results for the three months ended November 30, 2005. The Company recorded net income of $456,000 or $0.01 per common share for the quarter compared with net income of $61,000 or ($0.00) per common share for the three months ended November 30, 2004. During the quarter ended November 30, 2005, the Company recorded $2,003,000 in total oil and gas revenues. Of this amount, we recorded $1,241,000 from the sale of 130,244 mcf of natural gas for an average price of $9.53 per mcf, and $762,000 from the sale of 12,602 bbls of hydrocarbon liquids for an average price of $60.46 per bbl. During the quarter ended November 30, 2004, we recorded $1,083,000 in total oil and gas revenues. Lease operating expenses during the quarters ended November 30, 2005 and November 30, 2004, respectively, were $244,000 and $209,000. Resulting net cash provided by operating activities were $911,000 and $395,000 respectively for the quarters ended November 30, 2005 and 2004. Lease operating expenses (LOE) per produced Mcfe averaged $1.18 for the first quarter 2006. Net production for the quarter ended November 30, 2005 totaled 205,856 Mcfe compared to 146,925 Mcfe for the quarter ended November 30, 2004, resulting in an increase of 40%. Comparing the quarters ended November 30, 2005 (1Q06) and August 31, 2005 (4Q05), net production decreased by 16%, from 246,294 Mcfe, due to production curtailment of two major gas wells, located north of Beaumont Texas, caused by the effects of Hurricane Rita during the fall of 2005. Both the Sun Fee #1-ST (Nome Field) and the Maness GU #1 (Constitution Field) were shut-in as a safety precaution during and immediately after the hurricane passed just to the east. While not incurring any direct damage from the hurricane, production from the wells was periodically and significantly curtailed for the next month due to damage and subsequent repair to third party transportation and processing facilities. During the remainder of the quarter, production was brought back to pre-hurricane levels. At November 30, 2005, the Company had cash of $10,084,000, oil and gas receivables of $1,215,000, current liabilities of $2,167,000, total assets of $26,223,000, and stockholders equity of $16,622,000. There were 37,915,259 common shares outstanding at November 30, 2005. In mid-October 2005, the Company completed a private placement consisting of 6,327,250 shares of common stock at a price of $1.30 per share to a group of accredited institutional and individual investors. The Company received approximately $8.0 million in net proceeds after deducting related offering expenses. In December 2005, the Company filed a registration statement that would allow the re-sale by shareholders of the shares issued pursuant to this private placement. This statement became effective in January 2006. Commenting on the quarterly results, Scott Singdahlsen, President and CEO, stated, "While our production was down during the quarter, due to third party curtailments of two critical wells as a result of Hurricane Rita, our cash flow and net cash provided by operating activities continues to improve and grow. This combined with ongoing development at Wilburton and our soon to be realized initial production at the Duck Federal well in Wyoming, will allow the Company to increasingly fund its drilling program from internally generated revenue." Operational Update: At the Mallard project in Uinta County, Wyoming, the #1-30 Duck Federal well has been drilled, completed, and is currently awaiting initial production to sales. While previously anticipated that the well would be brought on-line to sales by mid-January, final start up of production has been delayed due to ongoing third party construction and modification at the gas processing plant. The operator has indicated that it is currently anticipated that production and sales will commence by late February contingent on no additional construction delays. The Company owns a 28.75% working interest in the well and surrounding acreage. At the Wilburton Field in Oklahoma, the Scharff #5-1 well has been completed and opened to sales at an initial rate of approximately 40 MMcf per day. The Scharff #6-1 well has reached total drilling depth of 15,206 feet, and casing is being set prior to initiation of completion activities. The Company owns a 2.42% working interest in the wells. 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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