FCP Encounters Pay with LEW-1 Well in Algeria


First Calgary Rourde Yacoub Block
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Lejmet Block, Berkine Basin, AlgeriaLejm
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First Calgary Petroleums Ltd announces a CDN$86.76 million bought deal financing and also an update on its operations and activities on Block 405b and Block 406a in Algeria, including the recent testing results from LES-1 and initial results from the drilling of LEW-1.

Bought Deal Financing

The Company is pleased to announce that it has entered an agreement with Canaccord Capital Corporation, under which Canaccord has agreed to purchase for resale to the public, on a bought deal basis, 6,000,000 Common Shares of FCP at a price of CDN $14.46 ( pnds stlg 6.50) per share, resulting in gross proceeds of approximately CDN $86,760,000 ( pnds stlg 39,000,000).

This transaction is subject to certain conditions, including normal regulatory approvals. The Common Shares will be offered in certain provinces of Canada by way of short form prospectus and on a private placement basis elsewhere. Closing is anticipated to occur on or about December 2, 2004.

Net proceeds of the offering will be used for exploration expenditures on oil and natural gas properties in the Republic of Algeria in which the Company holds an interest and for working capital purposes.

Operational update

LES-1 Exploration Well Testing Results

Production testing of the LES-1 well has resulted in a successful test of oil, gas and condensate of 21,105 barrels of oil equivalent per day (boe/d), comprised of 13,515 barrels of light oil per day (bbls/d), 30.9 million cubic feet of gas per day (mmcf/d) and 2,427 barrels of condensate per day (bbls/d), normalized to flowing pressures(1)(2) of 2,000 psi. Rates were as follows:


    <<
              ---------------------------------------------------------------
                      Test Conditions               Normalized Rates(1)
    -------------------------------------------------------------------------
    Gas       FWHP Choke   Gas  Condensate  Oil     Gas   Condensate  Total
    Interval   Psi  64th  MMcf/d   BBLS/D   BBLS/D  MMcf/d   BBLS/D  BOE/D(3)
    -------------------------------------------------------------------------
    Siegenian
     F6-2
     Lower   2,642    32    8.9    1,511        -     12.1    2,054    4,077
    -------------------------------------------------------------------------
    Siegenian
     F6-2
     Upper     251    44    1.5      470        -      1.2      373      580
    -------------------------------------------------------------------------
                                Sub-Total             13.3    2,427    4,657

              ---------------------------------------------------------------
                      Test Conditions               Normalized Rates(2)
    -------------------------------------------------------------------------
    Oil       FBHP Choke   Oil      Gas     Oil     Gas   Condensate  Total
    Interval   Psi  64th  BBLS/D   MMcf/d   BBLS/D  MMcf/d   BBLS/D  BOE/D(3)
    -------------------------------------------------------------------------
    Siegenian
     F6-1B
     Lower   5,761    32  3,601      4.7   13,515     17.6        -   16,448
    -------------------------------------------------------------------------
                                Sub-Total  13,515     17.6        -   16,448
                                          -----------------------------------
                                    TOTAL  13,515     30.9    2,427   21,105
                                          -----------------------------------

    FWHP - Flowing Wellhead Pressure
    FBHP - Flowing Bottom Hole Pressure
    (1) Rate normalized to a FWHP of 2,000 psi
    (2) Rate normalized to a FBHP of 2,000 psi
    (3) Using a conversion ratio of 6 thousand cubic feet of gas to 1 barrel
        of oil equivalent


This is the most southerly well drilled so far on Block 405b and has tested the highest rate of liquids from a single zone on the Ledjmet Block to date.

LEW-1 Initial Drilling Results

The LEW-1 exploration well is the most westerly exploration well drilled so far on Block 405b. It was drilled to a depth of 4,510 meters and is located approximately 7 km northwest of the recently drilled and cased MZLS-1 well. Wireline logging results indicate the presence of 67 meters of net hydrocarbon pay over multiple geological horizons. Production testing is expected to commence later this month.

Activity Overview

BLOCK 405b

The following table summarizes the ten wells that have been drilled to date on Block 405b. All ten wells have successfully identified hydrocarbons (gas, condensate or oil) through production testing and/or logging. The locations of the wells range from the MLE Field on the eastern side of the Block to the LEW-1 well in the central portion of the Block.


    -----------------------------------------
                 Normalized Rates(1),(2)
    -----------------------------------------
             Gas  Condensate   Oil     Total
    Well   (mmcfd)  (bbls/d) (bbls/d) (BOE/d)  Category     Status
    -------------------------------------------------------------------------
    MLE-1     31      784              6,019  Exploration  Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    MLE-2    192   13,098             45,151   Appraisal   Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    MLE-3    127    3,643             24,743   Appraisal   Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    MLE-4     23    1,223              5,090   Appraisal   Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    MLE-5     42    1,596              8,546   Appraisal   Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    LEC-1    105    2,602             20,059  Exploration  Cased Gas and
                                                            Condensate
    -------------------------------------------------------------------------
    LES-1     31    2,427   13,515    21,105  Exploration  Cased Oil, Gas
                                                            and Condensate
    -------------------------------------------------------------------------
    MZLN-1   214    9,863             45,596  Exploration  Cased Gas and
                                                             Condensate well
    -------------------------------------------------------------------------
    MZLS-1                                    Exploration  Production testing
                                                            expected to
                                                            commence in
                                                            November, 2004
    -------------------------------------------------------------------------
    LEW-1                                     Exploration  Production testing
                                                            expected to
                                                            commence in
                                                            December, 2004
    -------------------------------------------------------------------------

            ---------------------------------
    TOTALS   765   35,236   13,515   176,309
            ---------------------------------

    FWHP - Flowing Wellhead Pressure
    FBHP - Flowing Bottom Hole Pressure
    (1) Rate normalized to a FWHP of 2,000 psi
    (2) Rate normalized to a FBHP of 2,000 psi
    (3) Using a conversion ratio of 6 thousand cubic feet of gas to 1 barrel
        of oil equivalent
    (4) Test rates are from multiple zones.


The MLE appraisal wells drilled by FCP on the east side of Block 405b confirmed the presence of significant reserves within the MLE Gas and Condensate Field. Since then we have drilled a series of adjacent but independent hydrocarbon-bearing structural segments, extending over 32 km from the MLE Field west to the LEW-1 well.

The Company has now drilled four major structural segments on Block 405b and the geological and geophysical data indicate the presence of additional drillable structural segments west and northwest of LEW-1.

FCP also advises that drilling has commenced on the LES-2 appraisal well, located 2.7 km southeast of the LES-1 well. Initial logging results are expected by the end of December.

BLOCK 406a

Fieldwork continues on the 613 km2 3D seismic survey, initiated following the results of the ZCH-1 discovery earlier in 2004, and is expected to be completed in January 2005. The Company's 2005 drilling programme will include at least two exploration wells on this Block.

First Calgary Petroleums Ltd. is an oil and gas exploration company actively engaged in exploration and development activities in Algeria. The Company's common shares trade on the Toronto Stock Exchange in Canada (FCP) and on the AIM market of the London Stock Exchange in the UK (FPL).

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