FieldPoint Petroleum Acquires Lusk Field in New Mexico

FieldPoint Petroleum has acquired a working interest in the Lusk Field, Lea County New Mexico. The acquisition price is $850,000 for working interest of 87.5% to 100% in three wells and related equipment. The financing came from the Company's line of credit with its bank. Based upon engineering reports and certain standard assumptions this could add approximately 120,000 BOE in proved developed producing reserves net to FieldPoint, and positive cash flow outside of oil and gas production, from the salt water disposal facility. Effective April 1, 2004 FieldPoint Petroleum will take over operations.

"We are proud to control operations of this field along with current fields that we operate. The Big Muddy Field, Converse County, Wyoming the Giddings Field, Fayette County, Texas and the Serbin Field, Lee and Bastrop Counties, Texas. This acquisition meets all of our criteria of acquire-and- exploit strategy," states Ray Reaves, President and Chief Executive Officer for FieldPoint. "We expect this purchase to show an excellent rate of return based on existing production, but this field offers certain development potential, which may serve to increase our production, earnings, and cash flow from operations," commented Reaves.

As is its practice whenever it acquires a new property, FieldPoint plans to pursue an active redevelopment program in the Lusk Field within the next 60 days. FieldPoint plans to undertake several operations designed to increase production and current reserves including facilities improvement, production equipment upgrades, and wellbore optimization activities.

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