First Calgary Petroleums Makes Algerian Gas Discovery

First Calgary Petroleums Ltd. has made a gas discovery located on its 100% held Ledjmet Block (405b) in Algeria. Production liner is being set to total depth of 4390 meters in the MLE-2 discovery well. The MLE-2 well has in excess of 140 meters of net pay in 6 zones, as compared to 60 meters of net pay in the nearby MLE-1 gas well. In addition, all pay zones in the MLE-2 discovery well, including the Triassic Tagi, Carboniferous, and Upper and Lower Devonian zones are 28 to 40 meters structurally high compared to the nearby MLE-1 gas well. Rig release is anticipated for January 7th, immediately after which a service rig will move on site and an extensive production testing program will be commenced for all pay zones. The MLE-2 discovery well is located 2.5 km updip from the MLE-1 gas well which yielded through a production test, 43 million cubic feet per day of gas and 1745 barrels per day of condensate (8700 barrels oil equivalent per day) from 3 zones. The two gas wells are situated on one of several structures on Block 405b, which is 1108 km2 or 255,000 acres in area. First Calgary's MLE pool, prior to the discovery of the MLE-2 gas well, contained proven and probable reserves of 1.021 trillion cubic feet of gas equivalent (TCFe) of which 447 billion cubic feet equivalent (BCFe) were proven (evaluated by DeGolyer MacNaughton - independent Reservoir Engineers). The MLE-2 well is expected to add substantially to these reserves.

First Calgary will shortly be moving the drilling rig from the MLE-2 discovery well to its 100% Yacoub Block (406a) in order to commence drilling the YCB-1 well in mid to late January, 2003. Both blocks 405b and 406a lie within the prolific "Berkine Trend" where more than 5 billion barrels of oil and substantial gas reserves have been established in the last 12 years.