Vintage Completes Acquisition of Rio Alto Resources

Vintage Petroleum has recently closed its previously announced acquisition of 100 percent of the wholly-owned Argentine subsidiary of Rio Alto Resources International, Inc. (Calgary, Alberta) for total consideration of $36.4 million cash including normal course adjustments and subject to final adjustments. The acquired company's principal asset is an operated producing concession which covers approximately 54,000 acres in the north flank of the San Jorge basin of Argentina.

Current net production attributable to the producing Bella Vista Oeste concession is estimated at 1,900 barrels of oil per day from 52 active producing wells. Vintage estimates that it acquired approximately 7.2 million barrels of proved oil reserves in the transaction with Rio Alto, with proved undeveloped reserves accounting for approximately 20 percent of total proved reserves. In addition, the company believes that there are additional probable reserves, representing upside potential which may be realized through the 2004 work program and beyond.

Vintage believes the properties contain significant drilling, workover and waterflood potential which it plans to pursue along with the implementation of operational efficiencies. Drilling opportunities include infill drilling in the developed areas of the concession, and extensional or exploration drilling in the undeveloped portions of the concession. It is anticipated that one drilling rig would be utilized for drilling activities, with the first well planned to spud in late 2004. A number of workover opportunities have been identified at this time, with the work program assuming one dedicated rig commencing activities in late 2004. Additionally, a number of waterflood projects have been identified at this time, including the expansion of an existing waterflood. A dedicated rig for waterflood activities is also planned. The company had previously increased its 2004 capital budget for Argentina by $7.0 million to account for activity planned for this property during the remainder of 2004.