King Energy Inc. Announces First Quarter Results

CALGARY, Aug. 23 /CNW/ - King Energy Inc. ("King) (TSXV:KNG) is pleased
to present its financial results for the three month period ended June 30,
2005.

Highlights:

-  First quarter production averaged 165 boepd, an increase of 77% over
   the first quarter of 2004. Production was 4% lower than in the prior
   quarter ended March 31, 2005 due to temporary operational difficulties
   with one well, which have now been resolved.

-  Cash flow from operations in the first quarter totaled $295,587
   compared to $20,183 for the three months ended June 30, 2004

-  Net income for the three month period ended June 30, 2005 was $161,280
   compared to a loss of $127,190 for the quarter ended June 30, 2004.

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   FINANCE                                              Three Months
                                                        Ended June 30
                                                    ---------------------
   ($, all values)                                     2005       2004
   ----------------------------------------------------------------------

   Petroleum & Natural Gas Sales                      759,079    362,340
   Other Income                                        36,802          -
                                                    ---------------------

   Total Revenue                                      795,881    362,340
                                                    ---------------------

   Cash flow from operations                          295,587     20,183
     per share - basic                                   0.05       0.00
     per share - diluted                                 0.04       0.00

   Net Income (loss)                                  161,280   (127,190)
     per share - basic                                   0.03      (0.02)
     per share - diluted                                 0.02      (0.02)



   OPERATIONS                                           Three Months
                                                        Ended June 30
                                                    ---------------------
                                                       2005       2004
   ----------------------------------------------------------------------

   Daily production - boe                                 165         93

   Average price - $/boe                                50.63      42.72

   Operating expense - $/boe                            11.77      14.21

   Operating netback - $/boe
    (before G&A, interest and DD&A)                     31.36      14.82


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.

Copies of King's financial statements and accompanying notes for the
quarter ended June 30, 2005 and related Management Discussion and
Analysis may be obtained at www.sedar.com or by contacting the Company.

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

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%SEDAR: 00014713E