Gulf Canada Announces First Production

Gulf Canada Resources Limited announced the first gas from the Q4-A field located offshore in the Dutch sector of the North Sea. The gas came on stream in late December 2000, on schedule and on budget. Gulf Canada Resources Limited, through its wholly owned subsidiary Clyde Petroleum Exploratie B.V. is the operator of the block and holds a 29.85 percent interest in the field. The other partners are CLAM Petroleum B.V., Dyas B.V. and EBN B.V.

Gulf believes this is the first time in the 30-year history of Dutch exploration and production that a field has been brought on stream using a completely refurbished North-Sea platform.

The Q4-A gas field was discovered by the Q4-9 well in July 1999. Currently, this discovery well is producing at a steady rate of 48.5 MMSCFD. Gas is exported via the Clyde operated, P6-A processing facilities. Two additional development wells, Q4-A2 and Q4-A3, are now being drilled and are expected to be on production in the second quarter of 2001.

This initial production growth is a significant step in achieving Clyde's objective of doubling gas production in the next two years. In addition to Q4-A, the Q4-B field (discovered in 1998) will be developed via the Q4-A platform, with first gas expected in the second half of 2002. The Q4-B field is located seven kilometres to the SE of Q4-A.

"The work done on Q4-A is an excellent example of a fast track development," said Dick Auchinleck, President and CEO of Gulf Canada. "We believe that eighteen months between the discovery of the field and actual production is a tremendous accomplishment for the Dutch North Sea. I'm proud of what the Clyde staff and management have achieved and would also like to thank our partners for their support."