Bulldog Acquires Acreage in Southeast Saskatchewan

Bulldog Energy has finalized a purchase and sale agreement to acquire its partner's working interest in the Wordsworth property in Southeast Saskatchewan. The property was acquired from a company controlled by one of Bulldog's directors. The effective date of the sale was October 1, 2003. The company acquired a 25% working interest in four producing wells producing 55 Bbls/day net of oil, and oil processing, storage and salt water disposal facilities. The facility is pipeline connected to the Enbridge sales pipeline. Bulldog now has a 50% working interest in this property and is the operator.

The consideration paid for this property was $1,100,000 cash which will be funded through existing working capital and bank lines of credit.

A Gilbert Laustsen Jung Associates Ltd. Report dated October 1, 2003 for the acquired property assigned proven reserves of 106,917 Boe and established reserves (proven plus 50% probable) of 151,608 Boe. The net present value of the established reserves at 12% before tax was $1,216,000. As a result, the valuation metrics reflect costs of $10.29 per Boe proven reserves and $7.26 per Boe established reserves, and $20,000 per producing Boe.

The acquisition included our partner's 25% working interest, subject to a 2.5% gross over-riding royalty, in an adjacent undeveloped quarter section off-setting our successful horizontal wells at Wordsworth. Our recently shot 3-D seismic program indicates two drilling locations on this quarter. The first well, Bulldog 50% working interest, will be drilled as part of our current drilling program.

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