Virtus Acquires Producing Properties in Alberta

Virtus Energy Ltd. has signed a purchase and sale agreement to acquire producing oil and gas properties in central Alberta and southwest Saskatchewan. The oil and gas properties in central Alberta will be 100% owned and operated by Virtus and currently produce about 150 barrels of 34 (degree) API oil per day. The southwest Saskatchewan property is non-operated and currently produces about 25 barrels of 22 (degree) API oil per day. The properties have proven oil reserves of 364,000 barrels and 108,000 mcf of natural gas. Established reserves are 463,000 barrels of oil and 216,000 mcf of natural gas. The purchase price of the oil and gas properties is for cash consideration of $3,750,000 including 3D seismic of about $130,000. The acquisition is expected to close by the end of November 2001. Virtus is a Calgary based emerging oil and gas company with producing properties in the Golden Spike area of Alberta. The company trades on the Canadian Venture Exchange under the symbol "VEL".