Ascentex announces flow-through private placement.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 18, 1996--Ascentex Energy, Inc. (TSE: AEN) Ascentex Energy Inc. announced today that it has agreed to issue up to 1,930,000 Flow-Through Special Warrants by way of a Private Placement through Wolverton Securities Limited and E.C.C. Energy Corporate Consultants Ltd.

The Special Warrants will be offered on a best efforts basis at a price of $0.52 and enable the holder thereof to exchange each such Special Warrant for one "Flow-Through" Common Share of Ascentex.

The Private Placement is expected to be completed by October 31, 1996 with the net proceeds being dedicated to supplement Ascentex's remaining 1996 and 1997 exploration and development programs.

Ascentex has focused operations in southern Alberta and southeast Saskatchewan, as well as an interest in 33 net sections of exploration acreage in Manitoba, primarily along the Mississippian, Lodgepole subcrop trend. Additional interest is centered on a recent farmout to a major oil company of Ascentex's 33.33 percent working interest at Delia, Alberta (Twp. 31, Rge. 19, W4M) where a 1,750 meter Devonian, Leduc test will be drilled before the end of November, 1996. Ascentex has the option to retain a 16.67 percent working interest in the property following the drilling of the farmout well.

The Company's shares trade on the Toronto Stock Exchange - symbol AEN.

CONTACT: Ascentex Energy, Inc.

Eric C. Gronberg, 403/265-3320