To: The Osprey who wrote (11500 ) 2/26/2003 1:24:10 PM From: Al Collard Respond to of 11802 OEL-v ...in the news:Osprey makes arrangements to convert debts Wed 26 Feb 2003 News Release Mr. Bernard Robichaux reports Osprey has signed a letter of intent by Mako Megbiz K.F.T. of Bridgetown, Barbados, in which it agrees to convert an outstanding $1.65-million debt to a four-year convertible debenture, maturing on Feb. 26, 2007. It will bear interest at a rate of 10 per cent per year. The debenture will be convertible into Osprey common shares at a rate of 65 cents per share in year one, 75 cents per share in year two, 85 cents in year three and 95 cents in year four. The lender will also receive one-half of a share purchase warrant for each share converted. Each full warrant will have an exercise price to purchase Osprey common shares at 75 cents per share in year one, 85 cents per share in year two, 95 cents in year three and $1.05 in year four. The company also announces that BPR Energy Ltd. agrees to convert an outstanding $180,000 debt with Osprey Energy to a two-year convertible debenture with interest at 6 per cent per year. The debenture will be convertible into Osprey common shares at a rate of 65 cents per share in year one and 75 cents per share in year two. BPR will also receive one-half of a share purchase warrant for each share converted. Each full warrant will have an exercise price to purchase Osprey common shares at 75 cents per share in year one and 85 cents per share in year two. The $180,000 debt was part of Osprey's consideration for the purchase of a 25-per-cent interest in the Woodlawn property in Southwest Louisiana. On Monday the company announced the successful drilling of a natural gas well in that Hackberry trend prospect. A completion rig will be on site over the next several weeks to make preparations for bringing the well into production. Bernard Robichaux, the president of Osprey Energy, is also the president of BPR Energy. The agreements are subject to regulatory approval.