Tracer Petroleum Bids For Deepwater Block Offshore West Afri

Tracer Petroleum Corporation has signed a Memorandum of Understanding with West African Energy Company of Nigeria ("WAEL") to prepare a joint bid document for a prospective deepwater oil block situated offshore Sao Tome and Principe and Nigeria. WAEL is an investment management and energy project company which operates in the oil and gas sector of the Nigerian and West African oil rich region which is administered by the Joint Development Authority set up between Nigeria and Sao Tome and Principe, and is known as the Nigerian Sao Tome and Principe Joint Development Authority.

Final selection of the offshore oil blocks will be selected based on data that Tracer will be acquiring in the coming weeks. It is anticipated that the preparation and submission of the bid documentation will proceed once licensing issues between Nigeria and Sao Tome and Principe are concluded, expected to be in the first quarter of 2003. Further information will be released to Tracer's shareholders when available.

The pursuit of the deepwater offshore blocks is in addition to Tracer's previously-announced pursuit of onshore fields in Nigeria known as "marginal fields." In conjunction with two different local partners, the Company has participated in bidding for a number of marginal fields and is now awaiting the final award of the fields.