Encal Energy Ltd. and Calpine CorporationAnnounce Share Exchange


                         Ratio 
                                  For Merger 


  CALGARY, Alberta and SAN JOSE, Calif., April 16 /PRNewswire/ -- 
Encal Energy Ltd. (NYSE: ECA; Toronto: ENL) ("Encal") and Calpine Corporation 
(NYSE: CPN) announced today that the share exchange ratio for the companies' 
proposed merger has been calculated as 0.1493 exchangeable shares of Calpine 
Canada Holdings Ltd. for each existing Encal common share.  This exchange 
ratio is based on the weighted average trading price of Calpine common stock 
for the measurement period of ten consecutive trading days ending on the third 
trading day before the Encal special meeting scheduled for April 18, 2001 and 
the average currency exchange rate from U.S. dollars to Canadian dollars for 
such ten day period.  Based on the Encal special meeting scheduled for 
April 18, 2001, the measurement period ended April 12, 2001.  The weighted 
average trading price of Calpine common stock was US$51.2635 and the average 
currency exchange rate was C$1.5683 for each U.S. dollar for this measurement 
period.  In total, Calpine expects to issue approximately 16.6 million shares 
in connection with the merger.  
The exchangeable shares will be traded on The Toronto Stock Exchange.  The 
shares will be exchangeable, at each shareholder's option, into shares of 
Calpine common stock on a one-for-one basis.  The exchangeable shares will 
have economic and voting rights equivalent to shares of Calpine common stock.  
The merger of Encal and Calpine was announced on February 8, 2001.  The 
merger is subject to the approval of the shareholders and optionholders of 
Encal, approval by the Court of Queen's Bench of Alberta as well as the 
fulfillment of certain other terms and conditions, including regulatory 
approvals.  The Encal special meeting of shareholders and optionholders to 
vote upon the merger is scheduled for April 18, 2001 and the closing of the 
transaction is scheduled for April 19, 2001.  
Encal Energy Ltd. is a Calgary-based public oil and gas company with core 
operations in northeastern British Columbia and west central Alberta.  Encal 
focuses on growth through drilling, primarily directed toward natural gas 
targets.  For more information about Encal, visit our website at 
www.encal.com.  
Upon completion of the transaction, Calpine will gain approximately 
1.0 trillion cubic feet equivalent of proved and probable natural gas 
reserves, net of royalties.  The transaction also provides access to firm 
natural gas transportation capacity from western Canada to California and the 
eastern United States, and an accomplished management team capable, together 
with Calpine's existing management team, of leading Calpine's business 
expansion in Canada.  
The transaction will increase Calpine's net production to approximately 
390 million cubic feet natural gas equivalent per day in North America.  Daily 
natural gas production under the combined companies' control will be 
sufficient to fuel approximately 2,300 megawatts of generation.  Upon 
completion of the transaction, Calpine's proved and probable reserves will be 
approximately 1.7 trillion cubic feet of natural gas equivalent, net of 
royalties.  
Based in San Jose, Calif., Calpine Corporation is dedicated to providing 
customers with reliable and competitively priced electricity.  Calpine is 
focused on clean, efficient, natural gas-fired generation and is the world's 
largest producer of renewable geothermal energy.  Calpine has launched the 
largest power development program in North America.  To date, Calpine has 
approximately 31,200 megawatts of base load capacity and 6,500 megawatts of 
peaking capacity in operation, under construction and in announced development 
in 28 states and Canada.  Calpine was founded in 1984 and is publicly traded 
on the New York Stock Exchange under the symbol CPN.  For more information 
about Calpine, visit its website at www.calpine.com.  
The matters discussed in this news release may be considered 
"forward-looking" statements within the meaning of Section 27A of the 
Securities and Exchange Act of 1993, as amended, and Section 21E of the 
Securities Exchange Act of 1934, as amended.  Such statements include 
declarations regarding the intent, belief or current expectations of Encal and 
Calpine and their management.  Prospective investors are cautioned that any 
such forward-looking statements are not guarantees of future performance and 
involve a number of risks and uncertainties and actual results could differ 
materially from those indicated by such forward-looking statements.  Among the 
important factors that could cause results to differ materially from those 
indicated by such forward-looking statements are (i) that the information is 
of a preliminary nature and may be subject to further adjustments, (ii) risks 
associated with mergers including the ability to integrate Encal and Calpine 
operations, (iii) changes in government regulation, (iv) general operating 
risks, (v) the dependence on third parties, including Encal shareholders, 
(vi) the dependence on senior management, (vii) the successful exploitation of 
an oil or gas resource that ultimately depends upon the geology of the 
resource, the total amount and cost to develop recoverable reserves, and 
operational factors relating to the extraction of natural gas, and 
(viii) other risks identified from time to time in Encal's Annual Report and 
Annual Information Form filed with the Canadian regulatory authorities and 
Calpine's reports and registration statements filed with the Securities and 
Exchange Commission. 
  

SOURCE  Calpine Corporation  
-0-                             04/16/2001  
/CONTACT:  David D. Johnson, President and Chief Executive Officer, or 
Steven A. Allaire, Vice President Finance and Chief Financial Officer, both of 
Encal Energy Ltd., 403-750-3300, or fax 403-266-2337, or invrel@encal.com; or 
investors, Rick Barraza, ext. 1125, or media, Bill Highlander, ext. 1244, both 
of Calpine Corporation, 408-995-5115/  


    /Web site:  http://www.encal.com/ 
    /Web site:  http://www.calpine.com/ 


(CPN ECA ENL.)  
CO:  Calpine Corporation; Encal Energy Ltd. 
ST:  Alberta, California 
IN:  OIL UTI 
SU:  TNM  
-0- Apr/16/2001 13:01 GMT
 
 
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