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.     /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  â  -0- (PRN) Jul/23/2000 18:28 GMT