Caliber Energy Says Seismic Survey Shows Potential Oil Targets

Caliber Energy reports that the seismic review and interpretation on the Bolloque Project was completed by a third party reservoir engineer and an independent geophysicist. The seismic line that crosses the Company's leases is a previously shot, east-west, 2-D seismic line. The line was purchased and re-interpreted by the independent consultants to the Company. The interpretation confirms that a Leduc Pinnacle Reef buildup exists under the Company leases.

An estimate made from the seismic section indicates a reef buildup of approximately 30 meters (98.5 feet). Drill Stem Tests (D.S.T.'s) of this zone in nearby wells gave significant fluid recoveries from the flanks of the reef indicating good permeability. The reef has never been tested for oil at its highest development coincident to a topographic high. The Company plans on drilling at the highest location on the leases to test for an oil accumulation. The presence of a strong structural trap has increased greatly the probability of success of discovering a significant oil accumulation on the leases. The Company now feels that the Bolloque may represent a northern extension of the historic Leduc reef and that it may represent the extension of the prolific Leduc D-3 pools.

In a direct analog comparison, the Acheson D-3A pool with 100 oil wells with an average pay thickness of 82 feet and had peak production rates of 300 barrels per day.

The project is located 60 miles north of Edmonton, Alberta in the prolific oil producing Leduc area. Leduc Reef oil fields south of Bolloque contain oil wells that produce oil at rates of several hundred barrels per day and also well that have cumulatively produced over one million barrels of oil. Of the 680 oil wells drilled in D-3 pools, the production has been between a low of 145 and a high of 400 barrels per day with pay thickness of 35 to 142 feet.

Drilling as reported earlier is planned during May-June 2005 following spring breakup when road bans restricting movement of heavy equipment by the Province are lifted. The well depth to test the top of the Leduc is approximately 3,300 feet (1,100 metres) and an oil well is estimated to cost $280,000 for dry hole, and an additional $125,000 to complete the well. Caliber is earning its 49% working interest by drilling, casing and completing an exploratory well on the leases.