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To: E. T. who wrote (37)	4/5/2001 2:51:04 PM
From: The Osprey	Read Replies (1) \| Respond to of 39

News out on OEL.V to-day!!!!Looks good.Osprey Energy Ltd - News Release Osprey commences remedial work on Crosby 36A well Osprey Energy Ltd OEL Shares issued 5,334,288 2001-04-04 close $0.75 Thursday Apr 5 2001 News Release Mr. R. Gary Malone reports Osprey Energy has commenced remedial work on its Crosby 36A well in Louisiana. An interim financing will enable the company to complete the work necessary to produce the proven reserves of 7.8 billion cubic feet gas and 270,000 barrels of oil. The Crosby 36A, a high-pressure well with a total depth of 19,800 feet was successfully drilled by Union Pacific Resources in late 1998 but never equipped, produced or tied in to the commercial gas gathering system. A pipeline was recently constructed tying in the Crosby 36A well to the infrastructure of another company well, the Crosby 25, which was also drilled and completed early in 1998 by UPR. The Crosby 25 is fully equipped and tied into a commercial gas gathering system. It produced 142,821 barrels of oil and 554 million cubic feet of gas prior to being plugged with shale in late 1999. Once the work is completed on the Crosby 36A, a schedule to commence the remedial work on the Crosby 25 will be finalized. In October, 2000, a Houston geological firm, Keljor Group, LLC, indicated proved reserves of 11.2 billion cubic feet of gas, 498,000 barrels of oil and assigned a present value, net to Osprey's after payout 50-per-cent working interest of $24,006,108 (U.S.), a PV 10-per-cent value of $11,986,021 (U.S.) and a PV 15-per-cent value of $9,764,321 (U.S.) for these two wells. Osprey acquired a working interest in the property from UPR, 75 per cent prior to payout and 50 per cent after payout, effective January, 2000, when oil and gas were trading near 30-year lows. Subsequent to September, remedial work has been completed and production commenced on five other wells. The remedial work for the Crosby 36A is the most ambitious to date and is expected to dramatically increase revenue and cash flow. The company has also agreed to a 1.5-million-unit non-brokered private placement. Each unit will consist of one common share at 75 cents per share and one 12-month warrant exercisable at $1.00 per share. In addition, the company has agreed to issue 600,000 flow-through units at 75 cents per share. Each unit will consist of one share and one share purchase warrant exercisable for 12 months at $1.00 per share. A finder's fee will be paid on these financial transactions. The company has also entered into an option agreement to increase its working interest in this Louisiana property by an additional 10 per cent. An option for the first 5-per-cent working interest will be obtained by issuing one million of Osprey's common shares. Once the first 5-per-cent working interest is exercised, the company will have 24 months to exercise the second 5-per-cent option by issuing one million common shares valued at $1.00 (U.S.) per share. These transactions are subject to Canadian Venture Exchange approval. Over the past several months, remedial work completed on the company's three Louisiana properties has significantly increased revenues and cash flow. The oil and gas from the Crosby 36A is projected to more than double the company's daily production, which is expected to exceed 1,000 barrels of oil equivalent a day. WARNING: The company relies upon litigation protection for "forward-looking" statements. (c) Copyright 2001 Canjex Publishing Ltd. canada-stockwatch.com old url (better for printing)