Whittier Energy Acquires Operatorship of Cut Off Field

Whittier Energy has acquired an operated working interest in the Cut Off Field located in Lafourche Parish, Louisiana for $1.65 million from an undisclosed private company. Whittier acquired an average working interest of 73% in four producing oil wells, one salt water disposal well and two shut-in wells, with an effective date of March 1, 2004. Gross production from the field is approximately 210 Bopd (barrels of oil per day) and 150 Mcfd (thousand cubic feet per day). Net production to Whittier is approximately 105 Bopd and 35 Mcfd. Whittier paid for the property using $650,000 from working capital and $1.0 million from its revolving line of credit with Compass Bank. The Company has estimated net proved reserves in the field to be in excess of 350,000 barrels of oil equivalent.

Additionally, Whittier is pleased to announce that it has retained Enercom, Inc. to help with its investor relations needs. EnerCom works primarily with energy industry clients from its Houston and Denver offices.

"This property is a timely purchase given the current high commodity price environment we are in.'' said Bryce Rhodes, President and CEO. "We are excited about the additional cashflow this acquisition will generate and it fits within our existing area of operations. We have also identified behind-pipe reserves in two wells, reflecting our strategy of acquiring assets with upside potential to generate long-term value for Whittier. The field is in excellent condition and we believe there may be additional opportunities to improve its operating efficiency.'"

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