FCP Begins Drilling 5th Well on Ledjmet Block in Algeria

First Calgary Petroleums Ltd. has commenced drilling operations on the MLE-5 appraisal well on the company's Ledjmet Block 405b in Algeria.

The MLE-5 well, a 4550 metre test, is the fifth well located on the Menzel Ledjmet East (MLE) gas and condensate field. The well is located 1.3 km east of the MLE-3 gas well which tested 24,743 barrels oil equivalent per day. The MLE-5 well is particularly significant in that it will test a separate structural block which extends across the eastern side of the field. A successful well in this location has the potential to add significant reserves to the MLE field.

FCP also advised it will commence a 40 day production test on the recently completed MLE-4 well in early January, 2004. The MLE-4 well, located 4.9 km south of the MLE-3 gas well, was a successful appraisal of the southerly extent of the MLE Field and encountered at least five hydrocarbon- bearing zones with cumulative net pay over 56 meters. A further 33 meters of potential pay was encountered in a deeper horizon. This horizon has not been tested so far in the MLE Field but will be included in the upcoming testing program.

FCP further advised that following the company's recent acquisition of 600 sq. km of 3D seismic data to the immediate west of the MLE Field, the company is contracting a second drilling rig for early January 2004. The first location to be drilled with this rig will be the LEC-1 well which will be followed by at least seven additional exploration and appraisal locations.