Encal Energy Ltd.

  CALGARY, Feb. 2 /PRNewswire/ - In response to unusual trading activity in  the common shares of Encal Energy Ltd., Encal advises that it is in  preliminary discussions with a party regarding a possible combination.  The  company routinely evaluates all of its alternatives on a continuing basis.  No  assurance can be given that an agreement within respect to any transaction  will be reached or that a transaction will be consummated.   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).      SOURCE Encal Energy Ltd.  /CONTACT: David D. Johnson, President and Chief Executive  Officer or Steven A. Allaire, Vice President Finance and Chief Financial  Officer, Tel: (403) 750-3300, fax (403) 266-2337, E-Mail invrel@encal.com/   (ENL. ECA)   CO: Encal Energy Ltd.  ST: Alberta  IN: OIL  SU:     -30-  -0- Feb/02/2001 17:20 GMT