Berkley Petroleum Reports Financial Results for First Nine Months of 1997.

CALGARY, ALBERTA--(BUSINESS WIRE)--Nov. 24, 1997--Berkley (TSE:BKP.) (Alberta Stock Exchange:BKP.) Berkley Petroleum is pleased to report financial results for the first nine months of 1997 and provide an update on recent development activities and exploration drilling. The company is also pleased to report that the nine month production levels have been more than doubled over the past six weeks. Net revenue in the first nine months was $31.4 million compared to $23.1 million in the first nine months of 1996. Cash flow in the first nine months of 1997 was $20.0 million, nine month 1997 net earnings were $6.2 million. Production in the first nine months averaged 7000 barrels of oil equivalent per day. Average natural gas sales price was $1.61 per million cubic feet in the nine months, average oil price was $26.16 per barrel Cdn.

Year       Earnings  Earn/Share   Cash  CF/Share   Net Revenue
              (x)       (xx)       (x)    (xx)         (x)
----       --------  ----------   ----  --------   -----------
9mos '96     6.5        .16       17.0     .42        23.1

9mos '97     6.2        .12       20.0     .38        31.4

3Q   '96     2.3        .05        6.1     .15         8.8

3Q   '97     1.0        .02        4.9     .09         9.9

(x) Millions of dollars

(xx) Stock split three for one in June 1997.

The Company participated in 58 wells in the first nine months, resulting in 17 gas wells (7.5 net), 29 oil wells (12.5 net), five suspended wells (1.8 net) and seven dry holes (2.8 net).

Production in the third quarter averaged 6965 BOEPD (2218 BPD oil and liquids and 47.5 MMCFPD natural gas). Production in the third quarter and during the first nine months of 1997 has been less than anticipated, primarily due to delays in unitizing and obtaining GPP for the company's three large oil pools at Midale, Pembina and Carstairs. All three are now unitized and all will have GPP prior to year end, enabling the company to achieve the forecast exit target of 20,000 boepd. Plant related shut-ins in NEBC significantly reduced July production volumes and impacted overall third quarter volumes. Current daily production levels are 18,031 BOEPD, and will hit the 20,000 mark in mid-December through further increases and additions at Carstairs, Crossfield, Midale, Froude and Fort St. John. Cash flow and earnings were also lower in the second and third quarters due to the temporary replacement of high net-back shut-in Carstairs production with lower price/lower net back gas production from NEBC. With the new unit production from Midale and Pembina and the resumption of production from Carstairs, corporate net-backs will increase considerably.

At Midale in SE Saskatchewan, waterflood approval and GPP were obtained for the Red River A pool in August. The company decided not to increase production volumes until reservoir voidage could be maintained through the waterflood, which is now the situation with the two A pool injection wells, drilled in the third quarter. The three unit horizontal producers have been drilled and are currently being brought on production. Only one of the three horizontals is currently producing, the 15-3-7-11W2 well is producing 1125 BOPD with no water. The Company expects net production in excess of 5000 bopd from the Midale complex by year-end. A new pool discovery in the Devonian Duperow formation was made in September, with the Berkley et al Midale 13-2-7-11W2 flowing clean 45 degree API oil at approximately 425 bpd. Several Duperow follow-up locations exist. Berkley Petroleum and partners have entered into an agreement to acquire the interests of Cavell Energy Corp. in the Midale area for $7.3 million, complementing Berkley's existing production base and opportunity inventory. Berkley Petroleum and partners Paramount Resources and Westminster Resources have also entered into an asset exchange agreement with Upton Resources Ltd. whereby Berkley Petroleum and partners will acquire all of Upton's interests below the Mississippian Frobisher-Alida beds at Midale-Weyburn. A December closing is anticipated, Berkley has a 50 percent interest in both the Cavell and Upton transactions. The acquisitions will add 750 BOPD to Berkley's 1997 exit volumes and provide considerable development opportunity for 1998.

At Carstairs, working interest owners have agreed to an interim unitization arrangement for the Carstairs Elkton G pool, operated by Berkley. Contingent upon AEUB approval, a December 1 production start-up date under GPP is currently anticipated. The BPC et al Crossfield E 6-5-30-1W5 horizontal well in the Elkton G oil pool tested oil from the Elkton at rates of 4025 bopd, with a GOR of 127m3/m3 and less than 5 percent drawdown. A second horizontal, BPC et al Crossfield 8-5-30-1W5 is currently drilling. At Crossfield, the BPC et al Crossfield 9-1-28-2W5 new pool Elkton discovery, made in August, will be brought on production at 10 MMCFPDE in late November. A successful follow-up has been drilled at 4-5-28-1W5 and a third well, BPC et al Crossfield 13-6-28-1W5, is currently drilling. 3D seismic and further drilling at Crossfield are anticipated in the first quarter of 1998.

The 1997 exploration program has exceeded expectations thus far with significant discoveries in each of the four targeted major reserve growth areas; The NWT, western Alberta deep Devonian, the Alberta Foothills and extensions of the regional S.E. Saskatchewan deep oil play.

In the second half of 1997, Berkley Petroleum has been successful in extending the Ordovician light oil play beyond the original Midale discovery. With new pool discoveries at Harthaven, Clairlaw and Froude, a significant regional scope has been demonstrated by Berkley. The Berkley-Founders 7B-2-10-9W2 Harthaven well flowed 600 BOPD of 41 degree API oil on original production test. A 15 square mile 3D seismic survey was subsequently shot and a follow-up well is currently being tested. The Berkley- Richland Clairlaw 4-35-7-5W2 well tested clean 38 degree API oil at rates of 150 bopd. The company is currently defining follow-up locations with a new 3D survey. At Froude, the Berkley et al Froude 2-32-8-10W2 is currently producing 42 degree API oil at rates of 1875 BOPD from the Ordovician. The step-out, Berkley et al Froude 4B2-32 is a successful Ordovician horizontal oil well with GPP. This well will be brought on production during the next several days. Berkley has a net 50 percent working interest in the Froude wells, Paramount Resources and Westminster Resources have a 25 percent interest. Oil has been tested in several other horizons at Froude, an additional 4-6 locations are planned by Berkley and partners over the next three months. An additional four new pool wildcats in new SE Saskatchewan exploration areas, already defined by 3D seismic, are planned by Berkley in the next 2 months.

At Waskahigan, the BPC Chevron Waskahigan 11-36-62-25W5 well is currently drilling at 3200 m, with both Leduc and Swan Hills the primary objectives. The well has already encountered three uphole gas zones which are currently behind intermediate casing. Berkley is participating in the currently drilling Chevron et al Musreau 2-29-62-6W6 test, a step-out to the Berkley interest Chevron et al 8-25-62-6W6, cased gas well. Further deep exploration and development tests are planned in the Waskahigan-Simonette-Musreau play corridor during the first quarter of 1998.

Berkley Petroleum is currently participating with Imperial in two wells in the Red Cap and Voyager areas of Alberta, Berkley has a net 30 percent working interest. Berkley has received a licence for a new pool wildcat at Voyager, the BPC et al 7-22-45-18W5 well is expected to spud in early December. Also expected to spud in December are the BPC et al Turner V. 12-35-20-3W5 and the Esso-Berkley Turner V. 4-21-21-3W5 wells, both pursuing large volume Mississippian targets.

In the NWT, production testing of the C-76 Bovie Lake gas discovery will take place in December when surface access is re-established. The Paramount-Berkley Maxhamish b-57-L 94-0-15 well is currently drilling. Berkley and Paramount are planning a two rig, four well deep drilling program this winter including a step-out to the Bovie discovery and two deep new pool wildcats on separate prospects.

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

The following information has been neither approved nor disapproved by the Toronto and Alberta Stock Exchange.

CONTACT: Berkley Petroleum Corp.

Michael L. Rose, 403/ 571-3600