Energytec Receives Drilling Permit Second Wyoming Well

Energytec, Inc. has received a drilling permit for the second well in its Wyoming Thermal Recovery Project. The well, the Cinnamon Bear 2-4, will be drilled on private land not under the auspices of the Bureau of Land Management (BLM) from whom Energytec leases more than 16,000 acres of adjoining federal land.

The "2-4" will start drilling this week and is expected to take 10-12 days to drill due to winter operating conditions. Upon completion, the 2-4 will be produced "cold" for four to six weeks while the steam injection system is assembled and the Company completes its additional reservoir engineering analysis. Steam injection is scheduled for early April and will continue for as much as 30 days depending on final engineering adjustments. Production should recommence in early May at an enhanced level.

Thereafter, the Company will start a second well on the more than 900 acres of the private lease and also return to its original well, the Cole Federal 1-26, in May to continue the drilling program suspended in November 2003 by the BLM.