Osprey Agrees to Sell Jenner Shallow Gas Property in Alberta

VANCOUVER, B.C., CANADA


BRIDGEWATER, Nova Scotia, Aug. 2, 2001 (PRIMEZONE) -- Osprey Energy (CDNX:OEL) is pleased to announce it has agreed to sell its Jenner Shallow gas property in southeastern Alberta to a senior Canadian oil and Gas Company. These Jenner holdings, which were purchased in 1994, are comprised of a 12.9943% working interest in 69 producing shallow wells. This decision follows a comprehensive evaluation of all Company assets in terms of market conditions and this year's commodity prices. That process determined that shareholder value could best be maximized by liquidating the Jenner Shallow property in favor of the much higher growth potential and return on investment to be realized from other Company assets.

The Company's business plan projects production to grow from the current 950-1,000 barrels of oil equivalent per day to more than 2,000 BOED by the end of calendar 2001. In addition, the Company continues to aggressively develop its existing assets in Canada and Louisiana while seeking out other opportunities that could add significant new reserves and production beyond current forecasts.


                 ON BEHALF OF THE BOARD OF DIRECTORS OF 
                             OSPREY ENERGY LTD.
                              "R. Gary Malone"
                                  President

"This release was prepared by management who take full responsibility for its contents. The CDNX neither approves nor disapproves of this news release". WARNING: The Company relies on litigation protection for "forward-looking" statements.


        

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