FCP Makes Gas Discovery at LEC-1 in Algeria

First Calgary Petroleums reports gas and condensate success at LEC-1. The LEC-1 well was logged to a depth of 4,437 meters and wireline logs indicated the presence of 42 meters of net hydrocarbon pay over multiple intervals. Production testing to date has resulted in a successful flow of gas and condensate of 20,059 barrels of oil equivalent per day, comprised of 105 million cubic feet of gas per day and 2,602 barrels of condensate per day, normalized to a flowing wellhead pressure of 2000 psi. Rates were as follows:

                              Test Conditions          Normalized Rates(xx)
                                             Conden-         Conden-
    Interval            FWHP   Choke    Gas    sate    Gas     sate    TOTAL
                       Psi(*)         Mmcf/d  Bbls/d  Mmcf/d  Bbls/d  Boe/d +
    Siegenian F6-2
    Middle              4878  32/64"    21.6     566      77   1,774  14,628
    Siegenian F6-2
    Upper               3644  32/64"    16.4     532      28     828   5,431
                              TOTALS    38.0   1,098     105   2,602  20,059
        (*)  FWHP - Flowing Wellhead Pressure per square inch
        (xx) rate normalized to a FWHP of 2000 psi
         +   using a conversion ratio of 6 thousand cubic feet of gas to 1
             barrel of oil equivalent

Richard Anderson, President and CEO stated, "Once again, we are delighted with the results from our operations on Block 405b. We have production tested 20,000 barrels of oil equivalent per day from two intervals in the LEC-1 well. These results confirm the continuation of the prolific Devonian-age rocks to the west of the MLE Field onto a previously undrilled structure. Prior to drilling this well the closest hydrocarbon indications were in the original MZL-1 well 5.5 km to the west and FCP's MLE-2 well 8 km to the east."

The LEC-1 testing unit is now moving to the recently drilled LES-1 exploration well.

A second testing unit is in operation on the MZLN-1 well with results expected within the next month.

Drilling has commenced on the Ledjmet West 1 (LEW-1) exploration well with initial results expected in mid-November.

Two further locations have now been identified for drilling in 2004 on Block 405b: LES-2, a step-out location from LES-1, and Zemlet er Rakeb 1 (ZER-1), an exploration location identified on the new 3D seismic survey on the western side of the Block.