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Gold/Mining/Energy : BPI Industries Ltd (BPR-VSE) -- Ignore unavailable to you. Want to Upgrade?

To: VIP Condo who wrote (85)	1/19/1998 5:02:00 PM
From: VIP Condo	Respond to of 355

BPI Industries Inc. SYMBOL : BPR.V 650 West Georgia Street, Suite 610, Vancouver, B.C. V6B 4N7 Tel : 604-685-8688 Fax : 604-683-1797 NEWS RELEASE For Immediate Release, January 16, 1998 Coalbed Methane Project Update - Project Development Plan Prepared BPI Industries Inc. ("BPI" & the "Company") (BPR-VSE) wishes to update the developments on its 43,000 acre coalbed methane project in Illinois Basin of southern Illinois. BPI has advanced US$2,879,982 to date as required to exercise its option to acquire 49% of the income stream in the project. Incidental to this exercise, BPI entered into an AAPL 610 Operating Agreement with Mid-Continent Methane, Inc. ('MCMI"), the project operator, on December 15, 1997, providing for the operation of the project and BPI's continued 49% support of the project operating costs. The initial option exercise funds were advanced to the operator for the purpose of drilling eight coalbed methane wells, building a gas gathering systems, and drilling a deep well to test the New Albany shale. That program was revised by MCMI, the operator of the project, and expanded to include drilling and testing of an additional 11 wells for a total of 19 wells. The wells were strategically located to test reserves held in the project. The preliminary results from all these wells were better than expected and have been previously reported. For the protection of the parties, and consistent with industry standards, the necessary testing, such as Xenon, Desorption Isotherms, and many other tests that have been and are currently being performed to properly evaluate the project, are held confidential by the operator. Similarly, BPI has been advised that for competitive and operational reasons, other interpretive information will also be held on a confidential and preferential basis by the operator until completion of certain project procedures and intends to release updated non-proprietary technical information on the project as soon as it is available. Methane Management, Inc., a subsidiary of International Resource Management, Inc. has recently acquired a 50% interest in MCMI which includes its interest in the coalbed methane project in southern Illinois. This acquisition includes the interest that were previously held in the project by Mr. Clyde House and Harrison & Moberly. Mr. James Azlein, the President of Methane Management, Inc., has taken over the financial aspects of the methane project for MCMI while Mr. Wheat will continue to manage all field operations and technical analysis. Mr. Azlein brings vast experience in development of a variety of international projects to the management team and will be playing an active role in the management of MCMI and the project. BPI will be relying on the recommendations of Mr. Wheat and Mr. Azlein from time to time in the development of the project given their expertise in the industry. In addition, Petroleum Geologist, Ken Bottoms, BPI's technical advisor and a director of the Company will continue to evaluate technical information on behalf of the board of directors as development progresses. In this regard, BPI has been advised that the operator has prepared a development program for the project which includes the drilling of 72 coalbed methane wells, 4 New Albany Shale wells, a gas gathering system and a water gathering and disposal system at a cost of US$24,328,912. The operator has notified BPI of its intent to begin the first stage of the recommended development during the second quarter of 1998. The Company is pleased that Mr. Azlein and Mr. Wheat are confident about making the decision to prepare for and initiate a development plan prior to the completion of the Cawley, Gillespie & Associates report on the project. BPI is awaiting delivery of a copy of the MCMI's technical information and the independent reports commissioned by the operator in connection with the development program. In addition, detailed AFE and proforma cash flow statements are currently being finalized to reflect anticipated capital expenditures, income, expenses and net cash flow from the project. Representatives of BPI are meeting with MCMI next week to review both joint and independent funding options for the $24.3 million recommended program. ON BEHALF OF THE BOARD OF DIRECTORS LUCKY JANDA Director For Further Information Contact 800-803-3204 or 604-685-8688 info@bpi-industries.com The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

To: VIP Condo who wrote (85)	1/20/1998 2:30:00 PM
From: ian dodge	Read Replies (1) \| Respond to of 355

VIP Condo, Sittig #1 has a great flow rate and indicates a truly viable project. Since it was drilled 2 years ago, the company has drilled another 18 or so wells on the property, but not released any flow or test results. Either these other results are less than spectacular, or they are keeping a lid on things for production/financing discussions. I suspect (pray for) the latter. Another thing I find interesting are the number of warrants expiring in the next 4 months. 50,000 @$1.15 exp feb 26 '98 630,000 @$0.70 exp mar 30 '98 1,000,000 @$1.44 exp apr 3 '98 1,000,000 @$1.92 exp May 17 '98 360,000 @$1.87 exp May 23 '98 We'll have to get some action if 'insiders' are going to get anything out of these. I'm still long on BPR - there are still lots of risks - but the opportunities are there. Did you read the full version of the Strain Consultants Report? It suggests a potential break-up value for BPR of $21.81. Now that would be something. What are your thoughts on BPR for the next 6 mo? I see a push back to $5 to exercise the warrants and if they can get production financing, $8-10 is realistic.