Zeppelin Energy to Acquire Drayton Valley Acreage

Zeppelin Energy's Board of Directors has approved in principal the final terms of the proposed acquisition of certain shallow oil and gas interests in the Drayton Valley area of west central Alberta. Technical due diligence and analysis has now been completed on the area and the preparation of legal documentation is in progress. It is anticipated that the agreement to acquire the Drayton Valley shallow interests will proceed in two stages with the first stage consisting of the earning of oil and gas interests in a maximum of approximately 1,600 acres closing prior to April 23, 2004. In this first stage acreage Zeppelin expects to earn a 90% interest on approximately 1,120 acres and 30% interest on a further 480 acres. In the second stage, Zeppelin proposes to enter into an option agreement with the vendors to earn additional oil and gas interests in the remaining 720 acres.

The Zeppelin Board of directors has also approved a resolution to fund the Drayton Valley project by the issue of up to 1.5 million Zeppelin shares at market value plus up to a total of 15% gross royalty on the project. Agreements have been reached for initial funding of approximately $ Cdn 58,000, which will be sufficient to close the Drayton Valley project acquisition, under the terms of the board resolution.