First Calgary Petroleums notes recent media speculation regarding its current strategic discussions. On May 12, 2005, First Calgary announced it was in discussions with a number of parties which were progressing well. Since that time First Calgary has decided to focus on formal discussions with Repsol Exploration Argelia, S.A. regarding a potential joint venture transaction which it believes will be materially beneficial to the Company. The Company has therefore suspended talks with other parties in the interim. At this stage First Calgary is unable to comment on the exact nature of the discussions. The
discussions are ongoing and a further announcement will be made as
There can be no assurance that any transaction will be entered into or completed as a result of this process.