Greentree Begins Exploration in Ontario

Greentree Gas & Oil has commenced drilling a deep exploration well in Norfolk County, Ontario, Canada. GGOL No. 66 is projected to reach total depth of approximately 1,200 meters and will be the first deep test in the Norfolk County region in many decades. The well will target the Ordovician Trenton/Black River and Cambrian formations in addition to testing gas potential in the Silurian Thorold formation. Talisman Energy Inc. (Fortuna Energy Inc.) is aggressively exploring the equivalent Ordovician Trenton/Black River formations in New York State with excellent success. Talisman has recently reported in press releases a number of new discoveries with initial natural gas flow rates in the range of 15 to 20 mmcf/d. Talisman has also disclosed that its production from the Trenton/Black River formations in the northeastern U.S. exceeds 100 mmcf/d and accounts for over 12% of its consolidated North American natural gas production.

In addition to potential in the Trenton/Black River formations, GGOL No. 66 has been designed to test an estimated 85 meter thick interval of Cambrian formation. A significant hydrocarbon show was encountered in the Cambrian formation approximately 17 kilometers north of GGOL No. 66 (280 mcf/d natural gas and 1 bbl/d oil) and the Innerkip Pool, another Cambrian formation discovery located approximately 60 kilometers to the north, has produced approximately 30 billion cubic feet of natural gas to date.

Greentree has applied for a drilling permit to test a potential extension of a recent Silurian Grimsby formation natural gas discovery north of West Lorne, Ontario. Data compiled at the Ontario Ministry of Natural Resources indicates that three of the recent discoveries in the West Lorne area had initial flow rates of between 1.2 and 4.2 mmcf/d with 980 psig reservoir pressure. Greentree has production infrastructure in the immediate area of the well location.

As an update to Greentree's existing operations, all four new natural gas discoveries previously reported in Norfolk County are on production at a combined rate of approximately 200 mcf/d. These wells are currently choked-back significantly pending further testing to determine their optimum production rate. In the Company's Rodney project area, six new oil wells are waiting on electrical power to be placed on production. The wells are expected to be on production in the next three weeks.

The Company also reports that the acquisition of the Ontario properties of Shiningbank Energy Ltd. is moving ahead and is expected to close on July 29, 2004.

Greentree Gas & Oil Ltd. is based in London, Ontario and is an explorer and producer of oil and natural gas in southwestern Ontario. Greentree Gas & Oil Ltd. has 30,365,299 common shares outstanding.