Benz Announces 548% Revenue Increase for Second Quarter.

HOUSTON--(BUSINESS WIRE)--Sept. 18, 1998--Benz Energy Ltd. (VSE:BZG) today announces that oil and gas revenues were $1,314,774 for the six months ended June 30, 1998, compared to $268,779 for the six months ended June 30, 1997, a 548% increase over the corresponding period in 1997. This revenue increase resulted from a 900% increase in natural gas sales and 65% increase in crude oil sales over the same period in 1997. Natural gas contributed 89% of the total production revenues in the second quarter 1998.

Production for the six months ended June 30, 1998 averaged 4.35 million cubic feet of gas equivalent ("MMCFED"), an increase of 853% from the similar period ended June 30, 1997. This production level does not yet include the addition of the recently announced Wausau, East Morgantown and Baber discoveries being completed, the two development wells currently being drilled on its Oakvale Dome discovery and the exploratory well still under way in East Texas.

General and administrative costs increased over the prior year to $3,142,945, primarily due to the increase in staff necessary to carry on the current capital program. Approximately 20% of the general and administrative expenses are non-recurring due to one-time costs associated with the rapid growth process. The Company incurred net interest expense of $2,687,169 of which $1,277,000 was amortization of issue discounts associated with issuance of its convertible debentures and the credit facility in 1997. As a result, the Company posted a net loss of $5,258,411 ($0.17 per share) as compared to a net loss of $1,314,774 ($0.06 per share) in the second quarter of 1998.

Prentis Tomlinson, chairman and CEO, stated, "This period's improvements are directly in line with our business plan. We expect that Benz will continue to show significant results in production rates and income throughout the balance of 1998 and into 1999. The Company focus on gas-oriented projects in regions of the United States with good access to attractive gas markets ensures that further financial improvement is tied primarily to our continuing success with the drillbit and not to oil price."

Benz Energy Ltd. is an exploration and development company based in Houston, Texas focused on natural gas in the U.S. Gulf Coast of Texas, Mississippi and Louisiana.

Cautionary Statement as to Forward-Looking Information

Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information ("forward-looking statements (information)"). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including rates of inflation, natural gas prices, reserve estimates, drilling risks, future production of oil and gas, changes in future costs and expenses related to oil and gas activities and hedging, financing availability and other risks related to financial activities.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release. -0-

                        BENZ ENERGY LTD.
        Consolidated Statement of Operations and Deficit
                          U.S. Dollars
                     (U.S. GAAP, Unaudited)
                                             Six Months Ended
                                                 June 30,
                                            -------------------
                                           1998              1997
                                           ----              ----
Income
Petroleum revenue                          $1,740,939              $268,779
Direct Expenses
Lease operating expenses                     337,558                52,732
Depreciation, depletion
 and amortization                             989,531               152,673
                                        1,327,089            205,405
                                     ------------        -----------
                                          413,850             63,374
                                     ------------        -----------
Other Expenses (Income)
General and administrative
 expenses                                   3,142,945             1,411,619
Interest expense                           2,694,993                33,839
(Gain) loss on sale of
 marketable securities                             142,147              (107,126)
Interest and other income                    (307,824)               (23,558)
                                        5,672,261          1,314,774
                                     ------------        -----------

Net Loss for the Period                   (5,258,411)            (1,251,400)
Deficit - beginning of
 the period                                  (5,045,686)              (855,693)
Deficit - end of the period                $(10,304,097)           $(2,107,093)
                                     ------------        -----------
Basic Loss Per Share                              $(0.17)                $(0.06)
                                     ============        ===========
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Operating Statistics
Gas Production, MCFGD                             3,782.1                 288.0
Oil Production, BOD                                95.1                  36.5
                                          -------             ------
      Equivalent (6:1) MMCFGDE                  4,351.7              507.0
Average Gas Price US$                               $2.26                 $2.90
Average Oil Price US$                              $11.32                $17.85
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Selected Balance Sheet Items                       As of June 30, 1998
                                                     (Unaudited)
Cash & Equivalents                                      $11.0
Current Assets                                               10.0
Net PP&E                                               62.3
Total Assets                                               89.1
Current Liabilities (Note)                               25.1
Long Term Debt (Note)                                       40.7
Shareholders' Equity                                       23.3
  (Note: Current Liabilities includes, and Long Term Debt excludes,
current portions of Long Term Debt totaling $12.0 million due December
31, 1998)

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