First Calgary Petroleums Ltd. Advises on Reserves - ALGERIA

    TSX SYMBOL: FCP

    LSE SYMBOL: FPL

    CALGARY, May 6 /CNW/ - First Calgary Petroleums Ltd. (FCP) today updated

the status of the Engineering Report assessing the reserves and values on the

company's Ledjmet Block 405b in Algeria. Dallas based DeGolyer & MacNaughton

has been retained to independently evaluate the reserves and has assigned 5.74

TCFe (trillion cubic feet equivalent) of recoverable gas to the 3P (Proved +

Probable + Possible) category. The reserves relating to the 2P (Proved +

Probable) and the 1P (Proved) categories require a complete field development

plan presently being designed and results will be made public when completed.

    FCP's immediate plans are to drill three additional appraisal wells to

further delineate the MLE structure. The drilling location is being prepared

for the MLE-3 well. The additional appraisal wells will follow.

    To date three wells have been drilled on Block 405b: MLE-1, MLE-2, and

MZL-1. The MLE-1 and MLE-2 wells, both located on the same geological

structure, successfully tested gas and condensate from multiple geological

horizons. The test results recently released by FCP on the MLE-2 well

indicates the MLE structure contains a world class gas and condensate field.

Combined production rates over six zones in this well total 189 million cubic

feet of gas per day (mmcf/d) and 12,874 barrels of condensate per day (bc/d),

at 2,000 psi flowing tubing head pressure (FTHP).

    "We are delighted with how the reserves base is developing on Block

405b", said Richard Anderson, President and CEO of FCP. "These results clearly

indicate the logging and testing of MLE-2 has resulted in a significant

increase in the estimated reserves attributable to the block. FCP's

independent engineers have recognized the size of the pool to be in excess of

5.7 TCF(e) recoverable gas based upon the wells drilled plus the 3D seismic

which has delineated the structure to be in excess of 100 km2 in areal extent.

    The pool is emerging as a giant gas and condensate field far exceeding

any of FCP's original expectations. The field has all the required elements:

extensive reserves at high working interest, large production rates and

excellent market opportunities for the products. The reserves support

commercial exploitation and FCP has initiated project financing discussions

with parties which will not have a dilutive effect on FCP's shareholders. FCP

is in the enviable position of having a giant field close to existing

pipelines with readily available markets".

    The European gas market has grown steadily over the past few years.

Algeria provides 15% of the continent's natural gas consumption and some 29%

of Europe's gas imports. Algeria, along with Russia and Norway, is a founding

member of the Gas Exporting Countries Forum (GECF) which was established to

address the global patterns of natural gas demand and in particular the

liberalization of the markets in Europe. European consumption of natural gas

is projected to increase approximately 46% by 2010 while Algeria is looking to

increase its production capacity by 40% by 2005. FCP is well positioned to

take advantage of Algeria's expansion plans.

    FCP also announces that WesternGeco, the world's largest seismic company,

has been contracted for the acquisition of 600 km2 of 3D seismic data

immediately adjacent to and west of the MLE pool covering 2 large separate

mapped structures. FCP expects to have drilling locations on these structures

identified by the 4th quarter of 2003. FCP further advises a 240 km 2D seismic

program is currently underway on the Yacoub Block 406a to finalize a 2nd

drilling location on the Block.

    First Calgary Petroleums Ltd. is a Canadian oil and gas exploration

company that is actively engaged in international exploration and development

activities, primarily in North Africa. The company's common shares trade on

the Toronto Stock Exchange in Canada and on the Alternative Investment Market

of the London Stock Exchange in the UK.

    This news release may include statements about expected future events

and/or financial results that are forward looking in nature and subject to

risks and uncertainties. First Calgary cautions 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 currently

foresees.

 

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

(403) 264-6697, European Contact: 4C Communications; Carina Corbett, Tel    

+44 (0) 20 7907 4761, Website: www.fcpl.ca

    (FCP.)



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