Rival Energy Enjoys Success During First Half 2004

Rival Energy has completed a successful first six months of operations for 2004. The Company's activities have yielded 8 potential natural gas wells (6 completed and 2 waiting on completion), one oil well and 3 abandonments in Canada. (75% success) Rival expects that once these wells are tie-in to existing infrastructure and placed on-stream that corporate production volumes will exceed 800 barrels of oil equivalent per day. Activity planned for the third quarter consists of drilling another 4-6 wells in Robsart, S.W. Saskatchewan, a minimum of 3 wells in east central Alberta (one of which has recently been drilled and cased as a potential natural gas well) and 2 wells in the Bellshill / Killam area. The fourth quarter of this year should see a similar level of activity. To date Rival has operated 100% of this activity and expects to maintain this control over its capital expenditure program.

The Company anticipates that its financial performance over the second quarter of 2004 will be similar to that of the first quarter. That is, on-track to meet or exceed its budget projections of $0.25/share annualized target. Production declined slightly through the quarter due to natural declines, but were offset by higher commodity prices. Production from recent wells are expected to boost Rival's overall production volumes as they are tied-in during the third quarter. The Company continues to prudently manage its operations by keeping its spending in-line with its cash flow. To date Rival has expended approximately $2.5 million of its 2004 capital budget.

Rival continues to work toward achieving its exit rate production target of 1000 barrels of oil equivalent for 2004 and expects that positive results from the Company's planned active drilling program will accomplish this objective. Although the market continues to be very competitive and acquisitions are difficult to complete, the Company continues to aggressively pursue opportunities to accelerate its growth and increase shareholder value.

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