Capitol Energy Announces Filing of Annual Information Form and Increased Credit Facility



    TSX: CPX

    All amounts in thousands of Canadian dollars unless otherwise specified

    CALGARY, March 21 /CNW/ - Capitol Energy Resources Ltd. ("Capitol" or the
"Company") (TSX - CPX), is pleased to announce it has filed its Annual
Information Form for the financial year ended December 31, 2006 on Sedar, at
www.sedar.com.
    In addition, Capitol has set a record date of April 5, 2007 in respect of
its Annual and Special Meeting of Shareholders to be held on May 10, 2007.
    Capitol is also pleased to announce the National Bank of Canada has
increased the Company's revolving credit facility to $68 million from
$45 million and cancelled Capitol's $15 million non-revolving development
credit facility. The increase is based on the bank's annual technical review
of the Dixonville oil pool asset.

    ABOUT CAPITOL ENERGY RE

SOURCES LTD. Capitol Energy Resources Ltd. is a junior oil and gas, exploration and production company. Capitol's primary asset is a conventional Montney oil pool, at Dixonville Alberta, with 263 million barrels of original oil in place as at December 2006. Development of the pool will include drilling on reduced spacing with all necessary regulatory approvals already in place, and conversion of producing wells to water injection to maintain reservoir pressure all of which will result in optimal oil recoveries. Capitol has approximately 125 additional well locations identified in the pool and 25 additional exploration locations that will provide the Company with visible production growth. Capitol's engineering studies and production histories of similar oil pools indicate primary and secondary oil recovery rates of 20% to 30% of original oil in place are achievable. Capitol currently has approximately 53 million shares outstanding (57 million including outstanding dilutives). In addition to the substantial reserves base, Capitol has 48,092 net acres of undeveloped land and 250 km of proprietary 2D seismic and 64 square kilometers of proprietary 3D seismic. Management and directors represent approximately 11% of the basic shares outstanding. Additional information about Capitol including Capitol's December 31, 2006 financial statements and Management's Discussion and Analysis may be viewed on SEDAR (http://www.sedar.com) or the Company's website (http://www.capitolenergy.ca). The TSX has neither approved nor disapproved the contents of this press release.

For further information:

For further information: Monty Bowers, President & CEO, Capitol Energy
Resources Ltd., Phone: (403) 508-6321, Fax: (403) 508-6309; Doug Dearing, Vice
President, Finance & CFO, Capitol Energy Resources Ltd., Phone: (403)
508-6320, Fax: (403) 508-6309

Organization Profile

CAPITOL ENERGY RESOURCES LTD.

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