Pebercan Reports Production from Block 7 Tops 10 Mln Barrels

Pebercan says production at Block 7, the Company's main property in the Republic of Cuba, has topped 10 million barrels of hydrocarbons. In 2002, production reached 5,218,040 barrels. This output comes from 12 wells, plus the Canasi 9 well on which drilling began in January 2003 will start producing shortly. "The production tests under way are encouraging," explained Gerard Bourgoin, Chief Executive Officer of Pebercan. "This new well, combined with the four wells brought on-stream in 2002, will contribute to increasing Pebercan's production in 2003. With this enhanced production and the high petroleum prices we have seen since the beginning of the year, we can look forward to an excellent first quarter 2003."

A reassessment of the Company's reserves is about to be completed by the BEICIP, a subsidiary of the French Petroleum Institute. "The information received so far leads us to believe the results will be highly positive. Once this study is finished, in a few weeks at the most, we will release its results" said Mr. Bourgoin.

Pebercan Inc. is involved in the exploration, development and exploitation of oil reserves in the Republic of Cuba. It currently holds five concessions covering 7,285 sq. km., including Block 7 - the only one exploited so far - whose investments and profits are shared with its partner "Sherritt International" ("Pebercan": 52.5%; "Sherritt": 47.5%). Pebercan sells all its output to the Cuban Government because of strong local demand, but is not subject to any restrictions with regard to selling its oil.