Galleon Makes Oil Discovery in Peace River Arch

Galleon Energy has drilled a deep oil well which is, on early test, flowing in excess of 1,500 barrels/day of light sweet 40 degree API crude oil. The well is expected to be placed on production within two weeks at an estimated 500 barrels/day. The well is located in Galleon's core area of the Peace River Arch, Alberta.

Galleon owns 100% of this well and has an 85% interest in a 20,000 barrel/day facility of which 5,000 barrels/day are currently being processed. Galleon plans to drill an additional 8 to 13 deep oil tests in 2005 and 2006.