Extreme Energy to Acquire Acreage on Tsuu T'ina Lands

Extreme Energy has signed an agreement with Tsuu T'ina Energy Corp. to acquire a petroleum and natural gas lease covering 20,800 gross acres of lands on the Tsuu T'ina First Nation located immediately west of Calgary. The new lease is subject to Indian Oil & Gas Canada final approval and brings Extreme's lease and permit ownership on the Tsuu T'ina First Nation to a total of 34,240 gross acres (31,040 net acres).

As previously announced, Extreme has drilled one well on the Sarcee project which resulted in a potential dual-zone oil/gas discovery. Additional drilling on the Sarcee project is expected to commence by November, 2004.

In December, 2004, Extreme intends to shoot an approximate 10-square-mile three-dimensional seismic program across 11 sections of lands on the Whiskey Creek prospect located on the Sarcee project. The purpose of the seismic program will be to define drilling locations to offset and develop Extreme's producing Whiskey Creek Mississippian (Turner Valley) and Basal quartz (Blairmore) gas well located at 12-17-23-4 W5M. Extreme is the operator of the Sarcee project and maintains a 50- to 100-per-cent interest.

As previously announced, Extreme is currently tying in two natural gas wells in the Wizard Lake area of central Alberta. It is anticipated that the combined gas production from the two wells will be approximately a million cubic feet per day. One more well will be drilled in the Wizard Lake area prior to year-end 2004. Extreme is the operator of the Wizard Lake project and has approximately 18-per-cent interest.

Extreme also announces that it participated in the drilling and casing of a potential two- to three-zone oil/gas well in the Stachan area of central Alberta. Accrete Energy Inc. is the operator of the well and the subsequent planned development of the Stachan project. Extreme has a 12-per-cent participating interest in the new well.

In the Blueberry project (Peace River Arch area), located in northwest Alberta, Extreme is continuing to acquire lands and leases on prospects generated from a 126.5-square-mile three-dimensional seismic survey. Extreme plans to participate in the drilling of at least two wells prior to year-end in the Blueberry area. The wells will be drilled to a depth sufficient to test all formations down to and including the Kiskatinaw formation. Extreme has a 50-per-cent interest in the Blueberry project.

Extreme announces that it participated for a 12.083-per-cent interest in a well that has been drilled and cased to the Kiskatinaw formation in the Mulligan South project located in the Peace River Arch area of northwest Alberta. The well is currently being completed for potential natural gas production in the upper Kiskatinaw formation.

Additional drilling prior to year end 2004 will include Extreme operating one well in the Hotchkiss area and one well in the Grouard area. Both the Hotchkiss and Grouard areas are located in Northern Alberta. Extreme will have a 28.125-per-cent and 18.75-per-cent interest, respectively, in the Hotchkiss and Grouard wells.