Bulldog Energy Begins 15-Well Program in SE Saskatchewan

Bulldog Energy has initiated field operations on a 15 well drilling and re-entry program in its South East Saskatchewan light oil area. To date, four wells have been drilled including a new discovery with additional follow-up drilling potential. This well is currently producing 125 bbls/day (80 bbls/day net) of initiated field operations on a 15 well drilling and re-entry program oil. At Tatagwa, we drilled two successful horizontal wells which are currently producing a combined 197 bbls/day (47 bbls/day net) of oil. The fourth well, a new horizontal leg on a low rate oil well at Carlyle, has improved the well's production to 22 bbls/day (15 bbls/day net) of oil. The fifth well in the program is currently drilling.

Bulldog's second major operating region is at Rosevear in West Central Alberta where we have existing liquids rich natural gas production. We expect to drill three wells during the fourth quarter with working interests varying between 35% and 70%.

Bulldog is currently producing 620 Boe/day consisting of 1,000 mcf/day of natural gas and 454 bbls/day of oil and natural gas liquids. We expect that the current drilling program will result in a year-end exit production rate of approximately 900 Boe/day. This rate will be more than 50% higher than our expected 2003 average of 575 Boe/day and will provide substantial momentum as we start 2004.

Recently, we agreed with ELM Energy Management Ltd., on behalf of the Qwest Energy Limited Partnerships, to be our drilling joint venture partner on a pay 100% to earn 60% basis. This deal improves Bulldog's economics, finding costs, and efficiency in the use of capital. After completion of the drilling program, Bulldog will make an offer to purchase ELM's and Qwest's interests in the wells and lands within 24 months from the close of the limited partnership's financing. ELM will join Bulldog in the drilling of two vertical wells and a minimum of five horizontal wells. Bulldog will participate for a 40% working interest to earn a 64% working interest in three horizontal wells at Manor, a horizontal well at Lightning, and a vertical well at Carlyle. At West Griffin, Bulldog will participate for a 35% working interest to earn a 50% working interest in a vertical well. At Carlyle, Bulldog will participate for 37% working interest to earn a 50% working interest in a horizontal well. In addition, ELM will participate in the drilling of a vertical well in the Rosevear area of Alberta.

Three 3-D seismic programs and one 2-D seismic program have been completed. A fourth 3-D program will be run in mid- November. Our seismic data has confirmed greater than 20 potential development drilling locations on Bulldog lands contingent on successful initial wells.

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Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
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