First Calgary Petroleums Ltd. closes $140 million financing and updates

    testing and drilling results in Algeria

    TSX: FCP LSE: FPL

    CALGARY, Oct. 20 /CNW/ - First Calgary Petroleums Ltd. (the "Company" or

"FCP") announces the Company has closed the previously announced common share

issuance of 35,000,000 shares at a price of Cdn. $4.00 per share, resulting in

gross proceeds of Cdn. $140,000,000 (21,161,500 common shares at pnds stlg

1.79 per share and 13,838,500 common shares at Cdn. $4.00 per share).

    Canaccord Capital (Europe) Limited, Canaccord Capital Corporation and

Octagon Capital Corporation acted as agents for this offering.

    FCP also announces testing has been completed on the MLE-3 appraisal well

located on Block 405b. The MLE-3 well is located 3.7 kilometres east of the

MLE-2 appraisal well. The MLE-3 well was drilled to total depth of

4,497 metres and encountered 121 metres of hydrocarbon net pay over multiple

intervals. Production testing resulted in combined production flow rates of

24,743 barrels of oil equivalent per day, comprising approximately 127 million

cubic feet of gas per day and 3,643 barrels of condensate per day at 2,000 psi

flowing tubing head pressure. Two of the tested pay intervals encountered in

the well did not contribute to the flow rates. Both of these intervals will be

tested in future wells.

    The Company further announces drilling on the MLE-4 appraisal well

(located 4.9 kilometres southwest of the MLE-3 well) has reached a depth of

4,400 metres as at October 20, 2003 with a projected total depth of

4,600 metres. An intermediate logging run and a reservoir pressure survey were

conducted over the Carboniferous and Upper Devonian reservoirs, to a depth of

3,650 meters. Interpretation of this data indicates the MLE field extends

southward from the current limits of proven and probable reserves. Drilling is

now continuing to total depth, expected to be reached on or around October 24,

2003, after which a full suite of logs will be run to total depth and a

testing program will commence. Following the completion of the MLE-4 well, the

drilling rig will move to the MLE-5 appraisal well located 1.3 kilometres to

the east of the MLE-3 well.

    The MLE pool has reserves estimated by the Company's independent

engineers, DeGolyer and MacNaughton, of 5.7 trillion cubic feet equivalent on

a proved, probable and possible basis and the three wells drilled to date have

combined flow rates in excess of 77,000 barrels oil equivalent per day. Upon

completion of the MLE-4 and MLE-5 wells, FCP expects to have completed the

appraisal stage of the MLE field and anticipates moving directly to the

development stage.

    In June 2003, FCP commenced a 600 square kilometre 3D seismic program

immediately adjacent to and west of the MLE field. Field acquisition of

seismic data was completed in September 2003. Based on the results to date,

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.

    "The results of the wells continue to exceed our expectations. The early

interpretation of the 3D seismic to the west of the MLE field is encouraging

and has led management to accelerate the drilling program on the block," said

Richard Anderson, President & CEO.

    On Yacoub Block 406a, the Company has completed the acquisition of

240 kilometres of 2D seismic data and has received a three month extension to

complete the drilling of a second exploration well by February 10, 2004.

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

company 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 (FCP) and on the AIM market of the London

Stock Exchange in the UK (FPL).

    This news release shall not constitute an offer to sell or the

solicitation of an offer to buy the securities in any jurisdiction. In Canada,

the offering is made in Alberta, British Columbia and Ontario by prospectus

only and copies thereof may be obtained from the Agents.

    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: James Henderson, College Hill, Tel: +44 (0) 207 457 2020; Carina

Corbett, 4C Communications Ltd., Tel: +44 (0) 207 907 4761; Neil Johnson,

Canaccord Capital (Europe) Limited, Tel: +44 (0) 207 518 2777

    (FCP.)



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