FCP Updates Status of Ledjmet Block in Algeria

First Calgary Petroleums Ltd. announced positive reserve results from its ongoing appraisal drilling in Algeria. The independent engineering firm, DeGolyer and MacNaughton of Dallas, Texas, has estimated the gross proved, probable and possible reserves of FCP's Ledjmet Block 405b to be more than 5.7 trillion cubic feet equivalent (TCFe) of recoverable natural gas reserves. Of this total, proved reserves are 708 billion cubic feet equivalent (BCFe) and proved plus probable reserves are 2.4 TCFe.

To date, three wells have been drilled on Ledjmet Block 405b that include MLE-1, MLE-2 and MZL-1. The MLE-1 and MLE-2 wells, located on the same geological structure, successfully tested gas and condensate from multiple geological horizons totaling 53,200 barrels of oil equivalent per day on a combined basis.

Based on the wells drilled to date and the 3D seismic, the structure has been mapped to be in excess of 100 km2 in size. Immediate plans are to drill three additional appraisal wells to further delineate the MLE structure. Enafor Rig No. 29 is presently rigging up on the MLE-3 well location and will commence drilling in the next few days. The MLE-3 well will be immediately followed by the MLE-4 and MLE-5 wells. These wells are expected to move the majority of the reserves in the possible category to the proved and probable categories.

"The Ledjmet Block, held 100 percent by FCP and Sonatrach, the Algerian national oil company, is emerging as a world class gas and condensate field far exceeding our original expectations," explains Richard Anderson, President and CEO of FCP. "The field has all the required elements: extensive reserves at high working interest, large production rates, and excellent market opportunities for the products to Europe." Algeria provides 15% of the continent's natural gas consumption and some 29% of Europe's gas imports. European consumption of natural gas is projected to increase approximately 46 per cent by 2010 while Algeria is looking to increase its production capacity by 40 per cent by 2005.

FCP is well positioned to take advantage of Algeria's planned gas production expansion plans. With the Ledjmet reserves supporting commercial exploitation, the Company has initiated project development and financing discussions with parties which will not have a diluting effect for FCP's shareholders. The Company is in the enviable position of having a large field close to existing pipelines with readily available markets.

FCP also reports the acquisition of 600 km2 of 3D seismic data, immediately adjacent to and west of the MLE pool, is proceeding. FCP expects to identify drilling locations on two large separate mapped structures by the fourth quarter of 2003. In addition, a 240 km 2D seismic acquisition program on the Yacoub Block 406a has been completed and processing and interpretation are underway to identify a second drilling location on the Block.