Turner Valley Oil Completes Phase 1 at its Karr Property

Turner Valley Oil and Gas reports that Phase 1 of the re-completion of the Karr Property well is now completed and initial testing operations are being conducted by Sun Ocean Energy Ltd., operator of the Karr Creek gas well (8-24-63-3W6) in northwest Alberta, Canada. The well flowed oil to the surface at over 500 bopd (barrels of oil per day) and produced gas rates of up to 3 mmcf/d (million cubic feet per day).

The flow and build up test results are still to be evaluated from reservoir pressure surveys, which are currently underway. The results will be reported by the Company in early February. Once the pressure surveys are completed these results will aid in the design of a permanent tie-in and production facility.

Due to environmental restrictions, the earliest that pipeline construction can commence is May 1, 2004. The well will be put on-line immediately following tie in. The Company will continue to report its progress as information becomes available.