MSEV Acquires Stake in Canadian O&G Project

Micron Enviro Systems has signed a Letter Agreement to participate in an oil project located in Alberta, Canada, subject to execution of a mutually acceptable operating agreement and receipt of an Authorization For Expenditure. One well on this prospect produced over 30,000 barrels of oil over 23 months of production. MSEV would acquire a 25% working interest in this prospect. Operations on this prospect are expected to commence within two weeks.

Alberta accounts for 55% of Canada's oil production. Alberta's crude oil and equivalent production was 1,534,000 barrels per day in 2003. One half of Alberta's oil and gas is exported to the US, providing 5% of US oil consumption and 12% of natural gas consumption. The Oil and Gas Journal reported that Canada ranks second largest, only behind Saudi Arabia, in terms of global proven crude oil reserves at 15% of world reserves. The majority of these reserves are found in Alberta.

MSEV is making a more concerted effort to market itself to prospective shareholders. The marketing campaign will occur throughout the coming months as drilling results from our Texas and Canadian prospects are announced.

Bernie McDougall, president of MSEV stated, "We are continuing to make every effort to grow the company. Acquiring this new prospect located in a world-class oil and gas region only adds to our growth potential. The 25% working interest negotiated in this prospect may substantially add to our future revenue. This is the second prospect in Alberta that MSEV has signed in the past two weeks. MSEV is currently negotiating on other prospects. Our drilling program on the Martex Prospect, in Texas, is scheduled to commence drilling within seven days. When all these factors are taken into account, we feel that MSEV has embarked on an aggressive drilling program to build the company's revenue. It is possible that MSEV may be drilling on three separate oil and gas prospects this month. The last time MSEV was able to announce drilling results for a Canadian prospect the shares traded from 2.7 cents to a high of 8.7 cents within two days and traded over 24,500,000 shares on each of those two days. This occurred when the company had only four wells in production, no marketing campaign, and oil and gas prices were at much lower levels than today. Our goal is to become a mid-range oil and gas company and we are making every effort to bring this goal to fruition."

Operations are expected to commence within the next two weeks on the Red Water gas prospect in Alberta. The prospect consists of one initial well, with the potential to drill multiple wells if the first well is successful. The formation of primary interest on this property is the Viking Sands, which is gas productive throughout the immediate area. Recently, the Viking zones have been tested and produced gas in a number of wells in the immediate area of the prospect. Drill stem tests have resulted in flows in excess of 12,000,000 feet of gas per day.

Due to continued rain, drilling on the Stuart Wells in Texas has been further delayed. MSEV has already paid for drilling costs on the next three wells. The first five wells drilled on this prospect were successfully put into commercial production. The operator has informed MSEV that they expect drilling to commence within 7 days.