Welton Energy Corporation Operations And Corporate Update.

CALGARY, Alberta -- Welton Energy Corporation (TSX:WLT)(TSX:WLT.WT) ("Welton") is pleased to provide the following updates regarding its operations and current corporate developments, which are included in the filing of the Company's Preliminary Prospectus and Rights Offering.

OPERATIONS HIGHLIGHTS

The following table highlights Welton's current operational statistics:

Production     Undeveloped Acreage      Total Acreage
                (Net)
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                BOE/D       Gross         Net        Gross        Net
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Alberta
 Karr            269       13,440       2,944       16,640      4,320
 Majeau           88       15,360       9,437       19,200     11,174
 Kakwa            66        2,880         268        4,800        464
 Chime            49        3,840         653        5,760      1,178
 Ricinus          35       14,080       1,582       19,200      2,096
 Others           57       21,920       6,828       28,160      9,377
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 Subtotal        564       71,520      21,712       93,760     28,609


Saskatchewan
 Mantario        226        8,858       2,214        9,738      2,389

British
Columbia
 West Patry        -       29,382       2,240       30,035      2,330

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Totals           790      109,760      26,166      133,533     33,328
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Welton's significant acreage position in its key areas of activity provides the opportunity to develop meaningful increases in reserves and production on its existing asset base.

Future Guidance on Production

Welton is currently producing approximately 790 boe/d. As summarized in the table below, this rate is expected to increase by a total of 260 boe/d through to the end of the year following the tie-in of 18 gross (4.3 net) wells that have been completed and tested, and following the reduction to production resulting from the payout of the Karr well expected to occur also by year end. As a result, Welton's net production is expected to exit 2005 at approximately 1,050 boe/d.

Production
                                                        boe/d
-------------------------------------------------------------
Current Production                                        790

Estimated Production additions to December 31, 2005:
Mantario                                                  225
Majeau                                                     70
Chime                                                      15
Woking                                                     25
MedicineLodge                                              10
Ricinus                                                    30
                                       ----------------------
Production Additions                                      375

Karr Payout Adjustment                                  (115)
                                       ----------------------

Net Addition to Production                                260
                                       ----------------------

Estimated 2005 Exit Rate                                1,050
                                       ----------------------

The following table highlights Welton's Drilling Activity
(Gross) for fiscal year 2005:

Area        Drilled      Completed       Standing     Abandoned
---------------------------------------------------------------
Mantario          4              3              1             -
Majeau            5              3              1             1
Ricinus           5              4              1             -
Chime             1              1              -             -
Other             3              1              2             -
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 Totals          18             12              5             1
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Reserves Highlights

Welton also completed a mechanical update to its reserve reports in order to estimate the remaining reserves and their present values as at September 1, 2005. A mechanical update does not change any of the engineering assumptions or any of the production forecasts in the previously issued reserve reports for the Company's properties and recent acquisitions. This mechanical update only changed the effective date to September 1, 2005 to reduce reserves by the amount of forecasted production up to September 1, 2005 and uses new price assumptions, which were based on an independent engineers price forecast assumptions as at October 13, 2005. A complete listing of all energy prices used, including differentials is provided in the Company's Preliminary Prospectus. The following table summarizes the reserve estimates and their present values.

Pro
                                       Infiniti         Era     Forma
                             Welton  Properties  Properties  Combined
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Proved Reserves
 (before royalties)

  Crude Oil and NGL (MBbls)      23         581         514     1,118
  Natural Gas (MMcf)          1,195       1,827          98     3,120
  Oil equivalent (MBOE)         222         886         530     1,638

Proved plus Probable
 Reserves (before
 royalties)
  Crude Oil and NGL (MBbls)      46       1,253         617     1,916
  Natural Gas (MMcf)          2,318       3,186         123     5,627
  Oil equivalent (MBOE)         432       1,784         638     2,854

Proved Present Values
 (before royalties and
 without ARTC)
           Discount Rate
                0% (MM$)        8.6        31.0        11.0      50.6
                8% (MM$)        7.2        17.3         9.3      33.8
               10% (MM$)        7.0        15.5         9.0      31.5

Proved plus Probable
 Present Values (before
 royalties and without ARTC)
           Discount Rate
                       0%      16.7        65.0        13.0      94.7
                       8%      13.5        31.3        10.8      55.6
                      10%      13.0        27.4        10.3      50.7
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PROPERTY HIGHLIGHTS

Mantario East, Saskatchewan

On September 2, 2005, Welton closed the Era Acquisition. At the time of purchase, Welton acquired a 12.5%-25% working interest in 15 heavy oil wells and 9,738 gross acres (2,389 net) of land covering a heavy oil pool in the Mantario region of west central Saskatchewan. A total of 6 wells were producing at the time of the acquisition at a rate of approximately 225 boe/day (net to Welton) with the balance of the wells awaiting tie-in following completion of an expansion of the processing facility. The wells that are currently tied-in produce at a relatively high daily rate averaging over 150 barrels per day with little or no associated water which contributes to the low field operating costs of approximately $6.00 per barrel.

Subsequent to closing, Welton has participated in the drilling of 4 new wells: 2 are oil wells which are awaiting tie-in for production; 1 is a Viking gas well also currently awaiting tie-in; and the other is an exploratory well which is cased and pending evaluation.

The facilities expansion is scheduled to be completed in the fourth quarter of 2005 and the non-producing wells are expected to be tied-in over a 4 week period. Following completion of the tie-ins, Welton's share of production from the field is expected to exceed 450 barrels per day.

Existing wells have been drilled on 40 acre spacing. It is contemplated that future drilling will be done on 20 acre spacing which will potentially double the number of wells drilled in the field. Additional drilling to extend the pool and to identify new pools is planned and a total of 10 wells are expected to be drilled through the first quarter of 2006 which may add significantly to production levels.

Subsequent to the acquisition, Welton has acquired a 25% working interest in 1,920 gross (480 net) acres adjacent to its existing acreage. A 3D seismic program on the Corporation's lands is scheduled to be completed in early November to aid in identifying new drilling locations.

Majeau, Alberta

The Majeau project is located northwest of Edmonton. Multi-zone production potential exists from natural gas from the shallow Belly River, Viking, Mannville and Mississippian Banff sands. Depths range from 300 meters to 1,350 meters. Gas transportation and processing capacity is available nearby and access is year round. These projects wells can be drilled and cased for approximately $400,000 per well.

Welton currently holds working interests in 19,200 gross and 11,174 net acres plus 7,680 acres of farmin lands. Welton's interest in this project ranges from 30% to 50%, except for a six section license, where it is 100%.

Following the shooting of a 3D seismic program this summer, 5 exploration wells were drilled in the third quarter of 2005, 3 of which were successful and are currently being tied-in to be placed on production. The fourth well has been cased and will be completed and tied-in once sustained production rates from the 3 wells demonstrate sufficient reserves to support the cost associated with the longer tie-in distance for the fourth well. The fifth well has been abandoned. Several additional locations have been identified for drilling following satisfactory and sustained production experience from the wells being tied-in.

Brazeau, Alberta

This is a Nisku "I" Pool waterflood project, located approximately 90 miles west of Edmonton, owned 94.75% and operated by Welton. Independent engineering estimates indicate 1.3 million boe of proved and probable reserves may be recovered from this project. The costs to implement this waterflood are estimated at $1.1 million. Regulatory approval has been received and work has commenced. It is anticipated that increased oil production could commence as soon as 6 months and as late as 24 months from the date of this prospectus. The engineering report for this project projects production rates to average 150 barrels of oil per day in 2007 and peak at approximately 300 barrels per day in January 2008. This production will be processed through Welton's owned facilities in the area.

Non-recourse participating debentures of $3.0 million were issued in respect of the Brazeau property and accrue interest at prime plus 2%. After all costs incurred by the Company in respect to this project (capital, operating, overhead and interest) have been recovered, principal and interest under the debenture is then paid to holders at a rate equal to 50% of the net profits derived from the property until the principal and interest is fully repaid. Thereafter, the Corporation will pay 10% of net profits from the property to the debenture holders. Currently, the total obligation with accrued interest is approximately $3.6 million.

Chime, Alberta

Chime is a high impact, Deep Basin, multi-zone long life natural gas exploration project, located about 150 miles west of Edmonton. Welton owns a 19% working interest in 5,760 gross (1,178 net) acres in this project plus interests in 2 producing gas wells. This is an area of increasing interest for high impact multi-zone gas exploration from zones including Dunvegan, Fahler, Cadomin and Gething. Land prices and drilling activity have been increasing significantly in this area recently. Welton has participated for a 21% before payout and 19% after payout interest in a well which was successfully drilled and cased in September 2005. Completion work has commenced with tie-in and commencement of production expected in December. Follow-up drilling in this area is anticipated in 2006 with the timing and number of wells dependant on the production rate of the current completion.

Kakwa, Alberta

Kakwa is a multi-zone deep basin project located just north and west of Karr. Welton holds varying working interests in 4,800 gross (464 net) acres in this project. The Corporation participated in a completion program on a well located in 11-17-66-6 W6M in late 2004. This well has recently been placed on production at an initial rate of 1.4 mmcf per day. Welton has a 27% working interest before payout and 19% after payout in this well. Payout has been defined to include the drilling costs of the well, thereby extending the time period for Welton's 27% before payout working interest. A follow-up well is currently planned for drilling prior to year end.

Karr, Alberta

Karr has a multi-zone potential for both sweet and sour gas. Zones of interest include the Cadotte, Dunvegan, Bluesky, Gething and Wabamun. Welton holds working interests in 16,640 gross and 4,320 net acres plus a 20% working interest in a central compressor dehydration facility. Welton owns a 75% before payout and 40% after payout working interest in the natural gas and liquids rich well at 16-19-65-3 W6M. Payout is defined to include the total cost of Welton's acquisition cost for all the Karr assets plus its portion of the well completion and facility repair capital plus a $750,000 bonus payout amount. Payout is expected to occur in late 2005. The well has produced steadily at a rate of over 240 boe per day net to Welton since being placed on production in July 2004. Based on this rate, after payout production, net to Welton will be 125 barrels per day.

A Wabamun liquids rich sour gas well that tested at a rate of 11 mmcf per day in the 1990s is scheduled for completion in the fourth quarter of 2005 and tie-in prior to spring break-up in 2006. Up to now, natural gas from an uphole zone was being produced by a competitor so the deeper Wabamun zone was shut-in. An agreement has recently been concluded with this competitor whereby the Wabamun zone will be completed and placed on production through our facility this winter. Welton will own a 20% working interest, but will pay only 10% of the completion costs pursuant to this agreement. If successful, production from this liquid rich well could add up to an average of approximately 200 boe per day to Welton's production.

Additionally, 2 exploration locations have been seismically identified and drilling is planned for this winter. Welton plans to participate for its 40% working interest.

Ricinus, Alberta

Ricinus is a multi-zone natural gas resource play, with Welton holding working interests ranging from 8% to 20% in 30 sections of land - 19,200 gross (2,096 net) acres. This area is characterized by initial production rates ranging from 500 mcf/d to 1.2 mcf/d for the first 6-8 weeks, followed by a rapid rate decline to approximately one half of the initial rates, with a slow decline thereafter resulting in a reserve life exceeding 8 years. Drilling success rates for this project are very high, as evidenced by the fact that no dry holes have been drilled on this project to date this year. Since closing of the Infiniti Acquisition, 3 wells have been drilled on this project, 1 has been placed on production, while the other 2 are in the process of being completed and placed on production. One additional well is currently drilling and a further 2 wells may be drilled prior to year end. Until recently, well spacing was one well per section (640 acres); however, one well has been drilled in October on 320 acre spacing and a second well will be drilled on 320 acre spacing shortly. This reduced spacing could provide up to 25 additional drilling locations in this project.

CORPORATE UPDATE

The Company is finalizing a credit arrangement with its lending institution, which provides for a $3 million line of credit. This arrangement is currently under review to take into account recent successful activity.

Prospectus and Rights Offering (Convertible Debentures)

On October 21, 2005 the Company filed a Preliminary Prospectus. Welton is issuing to the shareholders of its outstanding common shares, transferable rights to subscribe for and purchase secured convertible debentures of the Corporation. The Corporation currently has 33,001,320 Common Shares issued and outstanding. Each Shareholder at the close of business on the Record Date noted in the Prospectus is entitled to receive one Right for each Common Share held. Rights are fully transferable and divisible. Rights entitle the holder thereof to purchase a Convertible Debenture in the principal amount of $100 at a price of $100, and at a coupon rate to be determined by early December 2005.

The proceeds of the offering will be used to repay the $10.5 million bridge financing arranged for the acquisition of Era Oil & Gas Corp. that was completed on September 2, 2005.

Corporate Appointment

Welton Energy Corporation is pleased to announce the recent appointment of Mr. David C. Whiteley to the position of Chief Financial Officer. In this capacity Mr. Whiteley will be responsible for all financing, budgeting, investor relations, financial reporting, taxation and regulatory compliance activities relating to  Welton. Mr. Whiteley will be actively involved as a member of Welton's executive team in the planning and execution of the Company's active growth plans. Mr. Whiteley brings a significant base of knowledge to the Welton team with over 15 years of professional experience in accounting, finance and corporate governance. Prior to joining Welton, Mr. Whiteley held senior financial and accounting positions at various public entities, and recently was the Vice President Finance at Rio Alto Resources International Inc. Mr. Whiteley is a Chartered Accountant, a member of the Alberta Institute of Chartered Accountants, and holds a Bachelor of Commerce degree from the University of Alberta.

OUTLOOK

Welton has emerged as an opportunity rich company with a diversified suite of prospects ranging from development, resources type projects such as Mantario East, Brazeau, Karr and Medicine Lodge; to lower risk exploration projects including Majeau, Woking and Chime that offer significant upside potential, to higher risk high potential exploration opportunities in the Peace River Arch and Patry (British Columbia). All of these projects have multi-zone potential and represent a balanced portfolio of opportunities for both short and long term growth. In addition to the wells described earlier in this press release, a further 6 wells have been drilled that are awaiting testing or further development to justify the cost of tie-in which should contribute to additional production in 2006. As well, the Company recently was successful at a crown land sale and added another 640 acres at Majeau and 480 acres at Mantario. In addition, with approximately 80 locations on the books and upwards of $26 million of projects identified, activity potential for 2006 and beyond is expected to be very significant for the Corporation. The Company's management team provides full-cycle expertise over all of its activities. The Corporation also continues to look at new acquisition opportunities to complement its drilling activities.

Cautionary Statements

Certain information set forth in this document contains forward-looking statements. By their nature, forward-looking statements are subject to numerous risks and uncertainties, some of which are beyond these parties' control, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, imprecision of reserve estimates, environmental risks, competition from other industry participants, the lack of availability of qualified personnel or management, stock market volatility and ability to access sufficient capital from internal and external sources. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of the preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Welton's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits Welton will derive therefrom. Welton disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A barrel of oil equivalent (boe) is derived by converting natural gas to oil in the ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent. A boe conversion may be misleading, particularly if used in isolation, as it is based on an energy equivalency conversion method primarily applicable at the burner tip and may not represent a value equivalency at the wellhead.

Welton Energy Corporation (TSX:WLT) (TSX:WLT.WT)