MSEV Increases Stake in Canadian Oil Project

Micron Enviro Systems has signed an agreement to increase its working interest to a 50% participation in an oil project located in Alberta, Canada. One well on this prospect produced over 30,000 barrels of oil over 23 months of production. Operations on this prospect are expected to commence within days.

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 has commenced and will be occurring throughout the coming months as drilling results from our Texas and Canadian prospects are announced.

Bernie McDougall, president of MSEV stated, "Being able to increase our interest to 50% could be a huge factor in our short and long term growth. Operations on this prospect could start as early as this week. Considering our Texas wells are scheduled to commence next week, this will be very active drill period for MSEV. We are looking forward to the new year as we could be involved in at least three separate drill programs through the end of December and into January. These next few months could be the turning point in MSEV's growth as we strive to become a mid-range oil and gas producer."

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.

The operator has informed MSEV that they expect drilling to commence on December 28, 2004. 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.