Encal Adds to West Central Alberta Holdings With Acquisition

  CALGARY, July 23 /CNW-PRN/ - Encal Energy Ltd. announced today it has 
signed a definitive agreement for the acquisition of a significant package of 
producing properties, undeveloped land, processing and gathering facilities. 
The properties are located in the Medicine River/Sylvan Lake  area of west 
central Alberta and are being purchased from a major producer.  
The total transaction, which is effective August 1, 2000, is valued at 
approximately $110 million and will be funded by the subsequent sale of non 
core assets and approximately $90 million of new debt.  Total debt at the end 
of 2000 is forecast to be $360-370 million with year 2000 cash flow estimated 
to be $250-260 million.  The cost of this acquisition, inclusive of 
exploitation activities planned for the balance of 2000, is expected to be 
below $7.00 per barrel of oil equivalent per day (6:1) and $8.00 per barrel of 
oil equivalent per day (10:1) on established reserves with production addition 
costs in the $21,500 barrel of oil equivalent per day  (6:1) and $26,000 
barrel of oil equivalent per day (10:1) range.  
``This acquisition is consistent with Encal's strategy of striving for 
dominance in key growth areas and a disciplined financial approach relative to 
acquisition investments. This group of properties is extremely complementary 
to Encal's Markerville/Sylvan Lake core area with respect to both operations 
and facilities,'' said David D. Johnson, President and C.E.O. of Encal.  
As a result of this investment, Encal has increased capital expenditures 
for 2000 from $225 million to $315 million.  
Encal Energy Ltd. is a Calgary-based public oil and gas company with core 
operations in northeastern British Columbia and west central Alberta.  The 
company focuses on growth through drilling primarily directed toward natural 
gas targets.  The company is listed on the Toronto Stock Exchange (symbol ENL) 
and the New York Stock Exchange (symbol ECA).  
  Certain information contained herein may constitute forward-looking 
statements under applicable securities laws.  Such statements are subject to 
known or unknown risks and uncertainties that may cause actual results to 
differ materially from those anticipated or implied in the forward- looking 
statements. 
  

SOURCE  Encal Energy Ltd.  
  -0-                        7/23/2000  
/CONTACT: David D. Johnson, President and C.E.O., Steven A. Allaire, Vice 
President, Finance and CFO, Michael R. Culbert, Vice President  Marketing  and 
Business Development, (403) 750-3300/  
(ENL. ECA)  
CO:  Encal Energy Ltd. 
ST:  Alberta 
IN:  OIL 
SU:  RLE  
  -30- 
-0- Jul/23/2000 18:13 GMT 
EOS   (PRN)    Jul/23/2000    14:13       85 
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-0- (PRN) Jul/23/2000 18:28 GMT
 
 
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