Oiltec Hits in British Columbia

Oiltec Resources Ltd. and operator Impact Energy Inc. have flow tested a successful wildcat exploration well at Bubbles/Laprise, British Columbia. Based on well logs, the discovery well encountered 23 meters of net gas pay in the Baldonnel zone and 14 meters of net gas pay in the Halfway zone. Production testing delivered 3.0 (1.2 net)mmcf/d of raw gas at 825 psi tubing pressure from the Baldonnel and 1.4 (0.6 net) mmcf/d at 350 psi from the Halfway. An independent reserve evaluation commissioned by Impact indicates net sales gas reserves for Oiltec in excess of 4 bcf on a proven basis and 7 bcf proven plus probable. The well will be tied into a Westcoast-connected gas gathering system, scheduled for the fourth quarter of 2001.

On the strength of these results, and seismic analysis, up to six potential follow-up locations have been identified on 12 sections of jointly held lands. A rig is scheduled to drill the first of these locations in early October.