Baytex Energy Arranges Private Placement.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 28, 1998--Baytex (TSE:BTE.A.) (Alberta Stock Exchange:BTE.A.)--Baytex Energy Ltd. (BTE.A - TSE, ASE) of Calgary, announced today that it has arranged for a private placement issuance, from treasury, of 1.2 million Class A, Flow-Through shares at a price of $5.70 per share.

The issue was placed, on a best efforts basis, by a syndicate of agents which includes Nesbitt Burns Inc., First Marathon Securities Limited, Goepel McDermid Inc. and Yorkton Securities Inc. Closing is scheduled to be on or before Nov. 24, 1998. Proceeds from the issue will be used to fund Baytex's winter capital expenditure program.

Baytex is also pleased to announce the appointment of John Leach, CA to the position of Vice President Finance and Administration. Leach has been with Baytex since 1993 in various senior positions in the company's Finance Department. In his new position, Leach will be reporting to Raymond Chan, Senior Vice President and Chief Financial Officer. Other recent appointments include the promotion of Garry Wasylycia to the position of Vice President of Exploration. Wasylycia joined Baytex in 1996 as a senior member of the company's Exploration Department.

It is with regret that Baytex announces the resignation of Norbert ("Bert") Kloster from his position as Executive, Vice President and a Director of the company. Kloster was a founder of Baytex and has played an integral part in its growth from 1993 to the present. Baytex would like to thank Kloster for his contributions in the past years and wish him the best in his future endeavors.

Baytex Energy Ltd. is a Canadian company engaged in exploration, development and production of natural gas and crude oil. The company's Class A shares are listed on The Toronto Stock Exchange and The Alberta Stock Exchange under the trading symbol "BTE.A".