San Telmo Energy Increases Production from McLeod Well

San Telmo Energy has eliminated all facility capacity restrictions experienced at our McLeod 6-18-58-13W5 well (6-18), as of December 3, 2004.

McLeod 6-18 has been restricted to between 200mcf/d and 900mcf/d for the last 8.5 months, and is currently producing at approximately 2.3mmcf/d with associated liquids. Rates are being increased gradually, using good production practices, to a stabilized rate of approximately 2.7 mmcf/d.

San Telmo Energy Ltd has a 70% working interest in the McLeod 6-18 well.