Re Agreement

    First Calgary Petroleums Ltd. announces joint development of MLE gas

    field in Algeria

 

    CALGARY, Nov. 2 /CNW/ - First Calgary Petroleums Ltd. ("FCP") announces

it has reached an agreement in principle with Sonatrach, the Algerian National

Oil Company, to jointly develop the Menzel Ledjmet East (MLE) gas and

condensate field in Block 405b of the Berkine Basin.

    FCP and Sonatrach have agreed to work together to finalize the plan for

development of the MLE field. Preparation for front-end engineering and the

awarding of an engineering, procurement and construction (EPC) contract are

anticipated in 2004 with first production expected in 2007. It is projected

the development plan will include the construction of a 650 million cubic feet

per day plant for processing natural gas and natural gas liquids. The cost of

the development, including development wells, field gathering, facilities and

tie-ins is estimated to be in excess of US $700 million. As part of the

agreement, FCP and Sonatrach have agreed to jointly secure markets and

Sonatrach has further agreed to allocate sufficient pipeline capacity to

deliver the product.

    The independent engineering firm of DeGolyer and MacNaughton has

estimated gross proved, probable and possible reserves to Ledjmet Block 405b

of more than 5.7 trillion cubic feet of gas equivalent (TCFe) of recoverable

natural gas reserves. Since these reserve estimates were prepared, FCP has

drilled two additional appraisal wells which have extended the current limits

of proved and probable reserves. FCP has recently completed the acquisition

and interpretation of 600 square kilometers of 3D seismic immediately adjacent

to and west of the MLE field. Based on the results, the Company intends to

accelerate its drilling program on Block 405b by contracting a second drilling

rig. At least eight exploration and appraisal locations have been identified

for drilling on the Block over the next year.

    Richard Anderson, president and CEO of FCP stated, "We are delighted to

receive this confirmation from Sonatrach regarding the joint development of

the field and the pipeline allocation. This represents a significant step

towards monetizing the reserves. Within two years of obtaining the Block, the

Company has acquired 700 square kilometers of 3D seismic, drilled wells and

confirmed the reserves to be world class in size containing an estimated

5.7 TCFe. Algeria, as a member of the Gas Exporting Countries Forum, is

strategically located to capitalize on the growing gas market evolving in

Europe as well as the expanding liquefied natural gas (LNG) market throughout

the world."

    First Calgary Petroleums Ltd. is an oil and gas exploration company

actively engaged in international exploration and development activities,

primarily in Algeria. The Company's common shares trade on the Toronto Stock

Exchange in Canada (FCP) and on the AIM market of the London Stock Exchange in

the UK(FPL).

 

    This news release includes statements about expected future events and

financial results that are forward looking in nature and subject to risks and

uncertainties. Readers are cautioned that actual performance may be affected

by a number of factors, many of which are beyond its control. Future events

and results may vary substantially from what First Calgary Petroleums Ltd.

currently foresees.

 

    For further information: Richard G. Anderson, President and CEO, First

Calgary Petroleums Ltd., Tel: [phone], Website: www.fcpl.ca; European

contacts: James Henderson, College Hill, Tel: [phone]; Carina

Corbett, 4C Communications Ltd., Tel: [phone]

    (FPL)

 

 



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