APF Energy Inc. Acquires Gas Property.

CALGARY, ALBERTA--(BUSINESS WIRE)--Jan. 23, 1997--APF (TSE AY.IR.) APF Energy Inc. announces that it has reached an agreement with a private company to buy natural gas assets located in the Countess area of Alberta of $10.6 million. The transaction has an effective date of November 1, 1996 and closing is expected to occur in mid-February subject to due diligence. The acquisition will add 5.6 Mmcf of daily gas production and 18.5 Bcf of reserves. The Countess property is strategically located adjacent to the Countess-Leckie property, in which APF Energy Inc. already has a 100 percent working interest and daily gas production of approximately 3.3 MMcf.

Cash flow from Countess will be included in the royalty payable to APF Energy Trust, which completed its initial public offering of 3.5 million royalty trust units at $10.00 per unit by way of instalment receipts on December 17, 1996. The transaction will be financed by existing credit facilities, which will be paid down when the second instalment on the APF Energy Trust units comes due on August 1, 1997.

1HE TORONTO STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED OF THE CONTENTS OF THIS PRESS RELEASE.

CONTACT: APF Energy Group

Martin Hislop, 403/ 294-1000

403/ 294-1074 (FAX)

[phone] (Toll Free)

[e-mail]

or

APF Energy Group

Steven Cloutier, 403/ 294-1000

403/ 294-1074 (FAX)