ALBERTA ENERGY COMPANY BOOSTS CONVENTIONAL OIL RESERVES BY 7 MILLION BARRELS.

NEW YORK--(BUSINESS WIRE)--JANUARY 19, 1995--ALBERTA ENERGY(Alberta Stock Exchange: AEC ) ALBERTA ENERGY COMPANY LTD. said today its exploration success in the Ogston area of Alberta's East Peace River Arch region has increased AEC's proven and probable conventional oil reserves by more than 7 million barrels, or 25 percent.

Gwyn Morgan, AEC's President and Chief Executive Officer, today told delegates at a Goldman Sachs/First Energy-sponsored Canadian exploration and production conference that continued growth of AEC's oil reserves and production capability through successes like Ogston helps to offset the impact of lower gas prices.

One of Canada's top 10 oil and gas companies, AEC holds 40,000 net acres in its 100-percent-owned Ogston play, 200 miles northwest of Edmonton, Alberta, in Western Canada. Recent independent engineering evaluations by McDaniel & Associates have added 7.2 million barrels to the previously assigned one million barrels in proven and probable reserves in the Ogston pool. The light, sweet crude is 38o API. AEC holds a 100 percent interest in the 8 wells drilled in this pool and, by year-end, the Company plans another 6 wells. This Granite Wash pool is at a depth of 5,000 feet and is expected to have operating costs of less than Cdn$3 per barrel. Production at Ogston is currently at 1,600 barrels per day, and the Company expects to commission a 2,500-barrel-per-day production facility by April.

Mr. Morgan told investors that preliminary reserve calculations indicate AEC's 1994 exploration and acquisition successes will replace more than three times its 1994 conventional oil production.

ALBERTA ENERGY COMPANY BOOSTS CONVENTIONAL OIL RESERVES BY 7 MILLION BARRELS Total 1994 Oil and NGLs Production Up 18%

"AEC's 1994 liquids production was 36,800 barrels per day. This shows a growth trend for AEC ---an 18 percent increase over 1993 levels of 31,000 barrels per day and a 64 percent increase since 1990," said Mr. Morgan.

In addition to growth at Ogston, he said the Company anticipates further liquids production increases in 1995, to 39,000 barrels per day, as AEC increases other oil and NGLs production capability and Syncrude continues to expand its production levels. AEC owns 13.75 percent of Syncrude.

"AEC will continue to maintain the integrity of its reserves bases. On a combined Syncrude and conventional basis, AEC has more than 270 million barrels of oil reserves with a 24-year reserve life. Although AEC is identified primarily as a natural gas company, stronger oil prices have a significant impact on the Company as each US$1 change in world oil prices adds Cdn$7 million to the bottom line," said Mr. Morgan.

Mr. Morgan also told investors that AEC's position as a leading Canadian natural gas producer, with 1.8 trillion cubic feet in proven and probable reserves and a 15-year reserve life, was further strengthened in 1994. Estimates of natural gas reserves additions, through exploration and acquisitions, replaced more than 150 percent of its 1994 gas production.

In addition to its oil and gas exploration, production and marketing activities, Alberta Energy Company is active in pipeline transportation, and natural gas storage as owner/operator of North America's largest independent storage facility, the AECO C HUBTM in southeast Alberta. AEC has more than 40,000 shareholders and a stock market value in excess of $1.2 billion.

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