CALGARY, ALBERTA--(Marketwire - Aug. 28, 2008) - Kroes Energy Inc. ("Kroes" or the "Corporation") (TSX VENTURE:KRS) announced its second quarter results for 2008. Cash flow from operations for the six month period ended June 30, 2008 increased to $297,045 from a negative $102,185 in the comparable period last year reflecting the continued success of the western Canadian shallow gas program. Production for the first six months of 2008 averaged 88 BOE/D compared to 36 BOE/D in 2007.

During the first half of 2008 Kroes participated in drilling three wells with a 12.5% working interest. One well has been producing since mid July at 532 Mcf per day (11 BOE/D net to Kroes) and a second well is on production at a restricted rate of 248 Mcf per day (5 BOE/D net to Kroes) while cleanup from a fracture stimulation is in process. The third well was completed and tested for an expected production rate of 639 Mcf per day (13 BOE/D net to Kroes) and is scheduled to be onstream the last week in August. In total these three wells will increase Kroes net production by 177 Mcf per day (29 BOE/D). Kroes now has interests in 10 shallow gas wells that are on production. In addition the Company has interests in three shut in Viking gas wells that are expected to be connected in the fourth quarter after compression and pipeline tie-ins are installed.

Kroes is also currently participating in a four well drilling program (Kroes share 0.875 wells) that began on August 20, 2008. If successful, initial production would be expected in October or November 2008.

With respect to the recently acquired Vecta lands, the Company anticipates a very active program over the next few months in the Brewster area:

15-11-43-13 W5M - This Crew-operated well began producing in mid-July and continues to flow at an average gross rate of 2.5 Mmcf/day (55 BOE/D net to Kroes) plus some associated liquids from the Belly River formation into the nearby Encana gathering system. Kroes will have a detailed report soon regarding the liquid content as to condensate and load frac oil as the well continues to clean up. Kroes has a 13.125% working interest in this well.

08-22-43-13 W5M - This well will be spudded around the end of August or early September. Kroes has a 7.5% working interest in this Crew-operated well which is targets the Belly River formation and is on trend with the 15-11well and another industry producer.

07-16-43-13 W5M - This previously drilled well will be re-entered for completion in the Belly River zone. Crew, the operator, expects this operation to commence in early September. Kroes has a 13.125% working interest in this re-entry.

12-15-43-12 W5M - Kroes has received fracture stimulation proposals from Schlumberger and Gasfrac Services for the Rock Creek, Nordegg and Mannville zones in this well.