Berkley Petroleum Corp. Company Update.

CALGARY, Alberta--(BUSINESS WIRE)--Aug. 18, 1997--Berkley Petroleum Co. (Alberta Stock Exchange, TSE:BKP) is pleased to report financial reports for the first six months of 1997 and provide an update on recent exploration drilling.

Net revenue in the first six months was $21.48 million compared to $14.29 million in the first six months of 1996. Cash flow in the first six months of 1997 was $15.08, a 36 percent increase over 1996 cash flow of $11.1 million. Six month 1997 net earnings were $1.46 million. Production in the first six months averaged 7,013 barrels of oil equivalent per day (47.3 million cubic feet per day sales gas, 2283 barrels per day of oil and natural gas liquids). Average natural gas sales price was $1.71 per million cubic feet in the six months, average oil price was $26.79 per barrel Cdn. -0-

Year  Earnings(a)  Earn/Share(b) Cash(a) CF/Share(b)  Net Revenue(a)

1H 96    4.3           .33       11.12     .83          14.29

1H 97    5.2           .10       15.08     .30          21.48

2Q 96    2.15          .16        5.72     .42           7.59

2Q 97    1.46          .03        5.72     .11           9.59

(a) Millions of dollars
(b) Stock split three for one in June 1997.

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The Company participated in 34 wells in the first six months, resulting in 13 gas wells (5.5 net), 15 oil wells (6.4 net), four suspended wells (1.3 net) and two dry holes (0.8 net).

Production in the second quarter averaged 7015 BOEPD (1331 BOPD oil and 49.7 MMCFPD natural gas). Production was less than forecast due primarily to the shut-in at Carstairs as unitization and GPP are pursued. The company anticipates unitization and a resumption of production at Carstairs late in the third or early in the fourth quarter. Outside operated gas volumes were also less than forecast due to facility related delays in NEBC. At Midale, unitization is complete and waterflood approval has been obtained, production will be increased from August through to year end in conjunction with the waterflood. These delays in bringing new production on-stream have led to a decrease in the 1997 forecast average production level from 15,000 BOEPD to 12,500 BOEPD. The company does remain on schedule to achieve the exit target of 20,000 BOEPD in the fourth quarter through GPP for three major oil pools (Midale, Carstairs and Pembina) and ongoing gas developments at Puskwa, Stoddart, Fort St. John and Wildhay River.

Berkley's Exploration program has been very successful thus far in 1997 with many new significant discoveries made to date. In addition to the discoveries at Bovie Lk., Simonette and Carstairs non-unit made in the first quarter, the company has operated or participated in second quarter cased significant new pool discoveries at Harthaven, Puskwa, Crossfield and in northwestern Alberta.

At Harthaven, in S.E. Saskatchewan, the Founders Berkley et al Harthaven 7B-2-10-9W2 well, operated by Berkley, flowed 41 API sweet crude from the Ordovician at rates of 600 BOPD with a five percent water cut on production test. At Crossfield, the company has a cased new pool Elkton discovery with the BPC et al Crossfield 9-1-28-2W5 well.

Production testing and step-out drilling are planned immediately, Richland Petroleum has a 33% working interest in the Crossfield well. These discoveries will contribute to Berkley's 1997 exit volume and offer significant development upside in 1998. The company initiated the next phase of Exploration drilling in July, with 35 new pool wildcats planned prior to spring break-up 1998.

The company currently has eight operated rigs drilling and is participating in six outside operated wells.

Berkley Petroleum's News Releases for the past 14 months can be accessed electronically through Canadian Corporate News website at http://cdn-news.com -0-

Neither the Toronto nor Alberta stock exchange has approved or disapproved the information contained herein.

CONTACT: Berkley Petroleum Corp.

Mike Rose, 403/571-3600