Eni Acquires First Calgary, Increases Stakes in Algerian Assets

Eni S.p.A. has reached an agreement to acquire all the common shares of First Calgary Petroleums Ltd. First Calgary is a Calgary (Canada) based oil and gas company actively engaged in exploration and development in Algeria and is listed on the Toronto and London AIM Stock Exchanges.

First Calgary has a 75% interest in the perimeter of Ledjmet (Block 405b), located in Algeria, which includes several fields, with total resources in excess of 1.3 billion boe, of which approximately half is gas. Eni estimates that the Acquisition will increase its reserves by approximately 190 mmboe (2P) within its Algerian asset portfolio. Production start up is expected in 2011 with a plateau of Eni's share of production of approximately 30,000 boepd by 2012.

Through the transaction, Eni will also ensure access to skilled and experienced management, strengthening its presence in a core country in which it has been active since 1980.

Under the terms of the agreement, First Calgary shareholders will receive C$3.60 per share in cash and convertible debenture holders will receive US$108,000 (plus accrued interest) in cash for each US$100,000 par value of bonds held. The Acquisition values the fully diluted share capital of First Calgary at approximately C$923 million.

The Board of First Calgary has voted unanimously to recommend the Acquisition to its shareholders. The Acquisition, subject to required regulatory approvals, will be effected by way of a plan of arrangement and is conditional upon the approval of First Calgary shareholders and convertible debenture holders. The transaction is anticipated to close late in 2008.

In connection with the Acquisition, certain shareholders, directors and officers of First Calgary have entered into agreements pursuant to which they have agreed to vote in favour of the plan of arrangement, representing in aggregate approximately 18.3% of the outstanding shares and options of First Calgary.

Commenting on the Acquisition, Paolo Scaroni, Chief Executive Officer of Eni, said, "We are pleased to have reached an agreement with First Calgary to acquire the company. The transaction is in line with our strategy of increasing our presence in our core countries, acquiring high potential assets. We will utilize our well established expertise and experience in Algeria. to leverage operational synergies. We are committed to the successful and rapid development of these gas fields and the consequent rapid start up of an important resource for the country."

Shane O'Leary, First Calgary's President and CEO said, "We are very pleased to support this transaction which we believe delivers the highest value for FCP shareholders compared with other strategic options."

"We will work with Eni to ensure a smooth transition and avoid disruptions to the project. We believe the resources and expertise that Eni can bring to this project should accelerate the development."