Gemini Announces 2006 Year-End Reserves Information and Activity Update



    VANCOUVER, March 30 /CNW/ - Gemini Energy Corp. (GNI-TSX) is pleased to
report the results of its year-end reserves report prepared by Netherland,
Sewell Associates, Inc. as at December 31, 2006. The reserves information
summarized below is available in greater detail in National Instrument 51-101
format within the Company's Annual Information Form available on SEDAR at
www.sedar.com.

    Unless otherwise noted the currencies referred to are in United States
dollars ("US$").

    
    HIGHLIGHTS

    -   Year-end 2006 net Proved plus Probable reserves increased 11% to
        149.2 billion cubic feet of natural gas equivalent (Bcfe) compared to
        123.6 Bcfe at year-end 2005, resulting in a Proved plus Probable
        reserves replacement of 813%

    -   Year-end 2006 net Proved reserves increased 11% to 89.6 Bcfe compared
        to 80.1 Bcfe at year-end 2005, resulting in a Proved reserves
        replacement of 298%

    -   2006 net production totaled 3.02 Bcf natural gas and 22.6 thousand
        barrels of condensate, or 3.15 Bcfe, compared to 3.53 Bcfe produced
        in 2004, a decrease of 11%
    

    RESERVES

    The December 31, 2006 reserve report was prepared utilizing the
methodology and definitions as set out under National Instrument 51-101 ("NI
51-101") and standards contained in the Canadian Oil and Gas Evaluation
Handbook. Under NI 51-101, proved reserve assignments are based on a 90
percent probability that total quantities recovered will equal or exceed
proved reserve estimates. Proved plus probable reserves are the expected case
where there is an equal chance that the Proved plus Probable reserves will be
higher or lower than estimated.
    The year-end reserves for 2006 and 2005 presented include company working
interests before and net after royalties and using forecast and constant price
and cost assumptions. Where amounts and volumes are expressed on a gas
equivalent basis, liquids volumes have been converted to cubic feet of gas at
a ratio of 6,000 cubic feet of gas per barrel (6 Mcf/bbl). A conversion ratio
of one bbl to six Mcf is based on an energy equivalency conversion method
primarily applicable at the burner tip and does not represent equivalency at
the wellhead.

    
     Summary of Company Interest Oil and Gas Reserves - Forecast Prices
     ------------------------------------------------------------------
                                  and Costs
                                  ---------

                                             31-Dec-06
                              Condensate      Natural           Natural
    Reserves Category            NGLs           Gas          Gas Equivalent
                                                             (6 Mcf : 1 bbl)
                                    Net               Net              Net
                       Company    After  Company    After   Company  After
                         Gross  Royalties  Gross  Royalties  Gross Royalties
                          (Mbbl)   (Mbbl)   (MMcf)   (MMcf)  (MMcfe)  (MMcfe)
    Proved
    - Developed
       Producing            299      246   39,393   32,461   41,188   33,937
    - Developed
       Non-Producing          0        0        0        0        0        0
    - Undeveloped           523      425   65,351   53,065   68,488   55,612
    Total Proved            822      671  104,744   85,526  109,676   89,550

    Probable(1)             573    455.2   71,611   56,905   75,048   59,636

    Total Proved Plus
     Probable             1,395    1,126  176,355  142,431  184,724  149,186



                            31-Dec-05
                             Natural
    Reserves Category     Gas Equivalent
                         (6 Mcf : 1 bbl)
                                   Net
                        Company   After
                         Gross  Royalties
                        (MMcfe)  (MMcfe)
    Proved
    - Developed
       Producing         42,755   35,409
    - Developed
       Non-Producing          0        0
    - Undeveloped        55,466   44,733
    Total Proved         98,222   80,142

    Probable (1)         55,508   43,464

    Total Proved Plus
     Probable           153,730  123,607
    

    Note: Totals may not add exactly due to rounding.

    (1) Probable reserves were determined using the definitions for Proved
    and Proved plus Probable reserves as outlined in NI 51-101.

    Forecast product prices are based on a year-end price forecast by a major
    Canadian independent consultant, which for condensate are based on NYMEX
    West Texas Intermediate prices for oil less adjustments and on NYMEX
    Henry Hub natural gas prices with adjustments for regional price
    differentials.

    

             Forecast condensate and gas prices are shown below.
             ---------------------------------------------------
                              Condensate Price(1)  Gas Price(2)
                Period Ending     (US$/Barrel)     (US$/MMbtu)
                12-31-2007           62.00             7.25
                12-31-2008           58.75             7.50
                12-31-2009           55.75             7.50
                12-31-2010           53.75             7.50
                12-31-2011           52.75             7.50
                12-31-2012           52.00             7.75
                12-31-2013           52.00             7.90
                12-31-2014           52.00             8.05
                12-31-2015           52.00             8.20
                12-31-2016           52.00             8.40
                12-31-2017           52.00             8.55

    Thereafter, escalated 2% on January 1 of each year.
    (1) before $0.90 price reduction
    (2) before $1.59 location differential deduction


    Net Present Value of Reserves - Forecast Prices and Costs (US$)
    ---------------------------------------------------------------

                                                      31-Dec-06
    Reserves Category                       Future Net Revenue (US$ Million)
                                             Discounted at (% per year)(1)
                                                 0%      5%     10%     15%
    Proved
    - Developed Producing                    $169.2  $106.5  $ 77.1  $ 60.7
    - Developed Non-Producing                $  0.0  $  0.0  $  0.0  $  0.0
    - Undeveloped                            $210.9  $100.3  $ 52.3  $ 28.4
    Total Proved                             $380.2  $206.8  $129.4  $ 89.2

    Probable                                 $223.0  $ 52.7  $ 37.7  $ 16.5

    Total Proved Plus Probable               $603.2  $206.7  $167.2  $105.7

    Note: Totals may not add exactly due to rounding.

    It should not be assumed that the discounted future net production
    revenues represent the fair market value of the reserves.

    (1) Included in the Net Present Value determination are undiscounted well
        abandonment costs of $2.8 million for total proved reserves and $4.7
        million for total proved plus probable reserves.


    Reserves Reconciliation - Forecast Prices and Costs
    ---------------------------------------------------


    Company Gross          Condensate Natural Gas
                                 Liquids                   Natural Gas
                                            Net                       Net
                            Net      Net   Proved+     Net      Net   Proved+
                         Proved  Probable Probable  Proved Probable Probable
                         (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)   (MMcf)
    December 31, 2005       761      428    1,189   94,533   53,518  148,050
    Extensions              100      111      211   12,483   13,915   26,398
    Improved Recovery         0        0        0        0        0        0
    Technical Revisions     (11)      34      (22)   1,364    4,178    5,542
    Discoveries               0        0        0      0.0        0        0
    Acquisitions              0        0        0      0.0        0        0
    Dispositions              0        0        0      0.0        0        0
    Economic Factors          0        0        0                 0        0
    Production              (27)       0      (27)  (3,636)       0   (3,636)
    December 31, 2006       822      573    1,395  104,744   71,611  176,355



                           Condensate Natural Gas
    Net After Royalties          Liquids                  Natural Gas
                                            Net                        Net
                           Net      Net  Proved+      Net      Net  Proved+
                         Proved Probable Probable   Proved Probable Probable
                         (Mbbl)   (Mbbl)   (Mbbl)   (MMcf)   (MMcf)   (MMcf)


    December 31, 2005       615      332      947   76,453   41,473  117,927
    Extensions               87       98      185   10,922   12,176   23,098
    Improved Recovery         0        0        0        0        0        0
    Technical Revisions      (9)      25      (17)   1,168    3,256    4,423
    Discoveries               0        0        0        0        0        0
    Acquisitions              0        0        0        0        0        0
    Dispositions              0        0        0        0        0        0
    Economic Factors          0        0        0        0        0        0
    Production              (23)       0      (23)  (3,017)       0   (3,017)
    December 31, 2006       671      455    1,126   85,526   56,905  142,431

     Summary of Company Interest Oil and Gas Reserves - Constant Prices
     ------------------------------------------------------------------
                                  and Costs
                                  ---------
                                              31-Dec-06
                                               Natural
                                                 Gas
                         Condensate NGLs                    Natural
    Reserves Category                                    Gas Equivalent
                                                        (6 Mcf : 1 bbl)
                                    Net              Net               Net
                        Company    After  Company   After   Company   After
                          Gross  Royalties  Gross Royalties  Gross  Royalties
                         (Mbbl)   (Mbbl)   (MMcf)   (MMcf)  (MMcfe)  (MMcfe)
    Proved
    - Developed
       Producing            294      242   38,654   31,863   40,417   33,314
    - Developed
       Non-Producing          0        0        0        0        0        0
    - Undeveloped           447      364   55,927   45,520   58,611   47,705
    Total Proved            741      606   94,581   77,383   99,028   81,019

    Probable(1)             459      365   57,329   45,568   60,081   47,755

    Total Proved Plus
     Probable             1,200      971  151,910  122,951  159,109  128,774


                            31-Dec-05
                             Natural
                         Gas Equivalent
                         (6 Mcf : 1 bbl)
                                   Net
                        Company   After
                         Gross  Royalties
                        (MMcfe)  (MMcfe)
    Proved
    - Developed
       Producing         43,530   35,747
    - Developed
       Non-Producing          0        0
    - Undeveloped        63,658   50,786
    Total Proved        107,188   86,533

    Probable(1)          62,932   48,842

    Total Proved Plus
     Probable           170,121  135,375

    Note: Totals may not add exactly due to rounding

    (1) Probable reserves were determined using the definitions for Proved
        and Proved plus Probable reserves as outlined in NI 51-101.

    Constant natural gas price based on 12/31/2006 Northwest Wyoming Pool
    spot market price of $5.545 per MMBTU adjusted by lease for energy
    content and associated fees.

    Constant condensate price based on 12/31/2006 West Texas Intermediate oil
    price of $61.05 per barrel adjusted by a reduction of $0.90 per barrel


    Net Present Value of Reserves - Constant Prices and Costs (US$)
    ---------------------------------------------------------------


    Reserves Category                   31-Dec-06               31-Dec-05
                                   Future Net Revenue
                                      (US$ Million)
                              Discounted at (% per year)(1)

                                  0%      5%     10%     15%      0%     10%
    Proved
    - Developed Producing     $106.9  $ 72.7  $ 55.1  $ 44.5  $225.2  $108.1
    - Developed Non-Producing $  0.0  $  0.0  $  0.0  $  0.0  $  0.0  $  0.0
    - Undeveloped             $100.4  $ 47.7  $ 23.6  $ 11.0  $253.3  $ 71.4
    Total Proved              $207.2  $120.5  $ 78.6  $ 55.6  $478.4  $179.5

    Probable                  $ 90.6  $ 35.3  $ 13.7  $  4.6  $230.8  $ 32.5

    Total Proved Plus
     Probable                 $297.8  $155.7  $ 92.3  $ 60.2  $709.2  $212.1

    Note: Totals may not add exactly due to rounding.

    It should not be assumed that the discounted future net production
    revenues represent the fair market value of the reserves.

    (1) Included in the Net Present Value determination are undiscounted well
        abandonment costs of $1.2 million for total proved reserves and
        $1.9 million for total proved plus probable reserves.
    


    Activity Update
    ---------------

    In 2007, one proved reserve location is scheduled to be developed on
company acreage at the Warbonnet property. The company's capital budget for
2006 related to development operations is estimated at 2.9 million. Field
operations are expected to commence the second quarter of 2007.

    Gemini Energy Corp. is a public company listed on the Toronto Stock
Exchange with 24,608,642 shares issued. The company's business is focused on
the exploration, development, and production of natural gas and natural gas
liquids at its Pinedale Anticline properties in southwest Wyoming.

    Certain statements including future drilling programs, future reserves
and other information included herein constitute "forward looking statements"
within the meaning of applicable laws or regulatory policies. Such forward
looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements
described herein to be materially different from any future results or
achievements expressed or implied by such forward looking statements. In
particular, estimating reserves involves inherent engineering uncertainties as
well as inherent uncertainties about the future fluctuations in the price of
gas, which can cause estimates of economic reserves to be revised upwards or
downwards. Other factors affecting forward looking statements include, among
others, the inherent uncertainties associated with oil and gas exploration;
legislative, environmental, judicial, regulatory, political and competitive
developments in areas in which Gemini Energy operates; and technological,
mechanical and operational difficulties encountered in connection with Gemini
Energy's activities. You should refer to the risk disclosures set out in our
annual report and other disclosure documents filed from time to time with the
TSX and other regulatory authorities.





For further information:

For further information: Gordon Nielsen at (604) 669-1400 or visit the
Company website at www.GeminiEnergy.com

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GEMINI ENERGY CORP.

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