FPL First Calgary

Reserves Estimates First Calgary Petroleums Ltd. Updates Algeria Reserves Estimates effective October 31, 2004 TSX: FCP LSE: FPL CALGARY, Jan. 17 /CNW/ - First Calgary Petroleums Ltd. (FCP or the Company) today announces it has received a summary of its reserves and values as of October 31, 2004 as estimated by the independent engineering company, DeGolyer and MacNaughton. The gross proved, probable and possible recoverable reserves estimated by DeGolyer & MacNaughton have increased to 13.5 trillion cubic feet of natural gas equivalent (TCFe), consisting of 8.4 trillion cubic feet of natural gas and 860 million barrels (MMBBLS) of oil, condensate and LPG. The reserves are attributed to the Ledjmet 405b and Rhourde Yacoub 406a blocks located in Algeria's Berkine Basin. The reserves estimates were prepared in accordance with Canadian Securities National Instrument 51-101 Standards of Disclosure for Oil & Gas Activities and are based on work completed and information available to October 31, 2004. The specific conditions under which the results reported herein were estimated are contained in the final report of DeGolyer and MacNaughton. The gross and FCP net recoverable gas, oil, condensate and LPG (natural gas liquids) reserves estimated by DeGolyer and MacNaughton are as follows: ------------------------------------------------------------------------- Gross Recoverable Reserves FCP Net Recoverable Reserves ------------------------------------------------------------------------- Gas Oil, Total Gas Gas Oil, Total Gas Condensate Equivalent Condensate Equivalent and LPG Volume and LPG Volume ------------------------------------------------------------------------- BCF MMBBLS BCFe BCF MMBBLS BCFe ------------------------------------------------------------------------- Proved Undeveloped 615 65 1,008 121 15 214 ------------------------------------------------------------------------- Probable 2,164 229 3,535 285 46 556 ------------------------------------------------------------------------- Proved and Probable 2,779 294 4,543 406 61 770 ------------------------------------------------------------------------- Possible 5,631 566 9,025 640 112 1,313 ------------------------------------------------------------------------- Proved, Probable and Possible 8,410 860 13,568 1,046 173 2,083 ------------------------------------------------------------------------- FCP's estimated future net revenue and present values relating to the reserves are as follows: ------------------------------------------------------------------------- Future Net Revenue and Future Net Revenue and Present Values (after tax) Present Values (after tax) using Forecast Prices using Constant Prices (US $Million) (US $Million) ------------------------------------------------------------------------- PV PV PV PV Undiscounted (8%) (10%) Undiscounted (8%) (10%) ------------------------------------------------------------------------- Proved Undeveloped $799 $383 $316 $875 $447 $377 ------------------------------------------------------------------------- Probable $2,211 $1,194 $1,029 $2,409 $1,351 $1,177 ------------------------------------------------------------------------- Proved and Probable $3,010 $1,577 $1,345 $3,284 $1,798 $1,554 ------------------------------------------------------------------------- Possible $5,752 $2,923 $2,516 $5,784 $3,104 $2,702 ------------------------------------------------------------------------- Proved, Probable and Possible $8,762 $4,500 $3,861 $9,068 $4,902 $4,256 ------------------------------------------------------------------------- (1) The gross and net recoverable reserves volumes are estimated under the constant price case. (2) The reserves estimates relate to Ledjmet Block 405b and Rhourde Yacoub Block 406a and reflect only the drilling and production test results obtained to October 31, 2004. Excluded from these figures are the test results from LEW-1 and the drilling and production test results from LES-2 and MLE-6. (3) FCP's net reserves allocations are based upon the terms of the contracts relating to each block. The Ledjmet Block 405b reserves allocation is calculated annually based upon a sliding scale formula that considers capital investment, production levels and product prices. Accordingly, the net allocation can vary annually and will be dependent upon the costs, production levels and product prices realised. For Rhourde Yacoub Block 406a, FCP is allocated the equivalent of 49% of the gross production on an equivalent-barrel basis. (4) Future net revenues are after Algerian royalties and taxes. The Company believes there will be no Canadian income taxes payable on the production of these reserves. (5) Gas equivalent units have been calculated by the Company at 1 barrel (BBL) for 6 thousand cubic feet of natural gas equivalent. (6) BCF means billion cubic feet of natural gas and BCFe means billion cubic feet of natural gas equivalent. Richard G. Anderson, FCP's President and CEO, commented, "The reserves estimate of 13.5 trillion cubic feet equivalent of natural gas by DeGolyer & MacNaughton is nearly double that of last year. During this ten month period the Company drilled seven wells, of which six were exploration and one appraisal, realising a 100% success rate. To have a reserves base increase of this magnitude from the drilling of seven wells, together with a large undrilled acreage position, positions FCP for continued growth and development." Additional information respecting the Company's reserves is contained in the Renewal Annual Information Form which is available on SEDAR at www.sedar.com. First Calgary Petroleums Ltd. is an oil and gas exploration company actively engaged in international exploration and development activities 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. FCP 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 Petroleums Ltd. currently foresees. For further information: Richard G. Anderson, President and CEO, First Calgary Petroleums Ltd., Tel: (403) 264-6697, Website: www.fcpl.ca; European contacts: Jim Joseph, College Hill, Tel: +44 (0) 207 457 2020; Carina Corbett, 4C Communications Ltd., Tel: +44 (0) 207 907 4761 (FPL) END

Copyright