CAYC Finalizes $17.5 Million Funding Agreement.

LAS VEGAS--(BUSINESS WIRE)--July 15, 1998--Caye Chapel, Inc. (OTC BB: CAYC) announced today that it has finalized the $17.5 million funding agreement with privately owned Honduras Petrochemical Oil Corp. (HPC) to sell 51% of its outstanding common shares from its largest shareholder, privately owned Churchill Resources, Inc. (Churchill), and infuse necessary growth capital.

According to the terms of the agreement, HPC will initially invest $2.5 million with $15 million over a period of one year, in $5 million increments. Additionally, Churchill will enter into a long-term management, acquisition and operations contract. The funding agreement will enable CAYC to grow through the acquisition of portable swabbing units, drill, test, complete, and equip new in-field oil wells as well as provide the funds for select acquisitions and for its day-to-day operations. With the infusion of capital over a period of 12 months, it is estimated that CAYC will be producing in excess of 3,000barrels of oil per day. The $15 million will be funded to CAYC under joint-venture transactions and will be non-dilutive to the CAYC shareholders.

CAYC recently acquired the assets of privately owned Great Plains, Inc. (GPI), which include 1,800 oil and gas wells with approximately 21 million barrels of proven oil reserves on 15 separate fields in central Texas. CAYC also acquired from GPI 6 portable swabbing units, rolling stock and all of its field and office equipment outright. In addition, CAYC recently acquired an additional 160 producing wells in Lytle and Summerset, Texas, with an estimated 3 million barrels of proven oil reserves. CAYC also has the right to convert its investment in Oilex, Inc. (OTC BB: OLEX) into common shares and has been discussing the possible consolidation of the two entities. Additionally, CAYC has two other acquisitions pending.

CAYC management is very pleased with the finalization of the funding agreement between CAYC and HPC. CAYC management believes that the relationship between the two entities is long term and should be beneficial to both parties as well as the shareholders of CAYC.

This news release includes forward-looking statements that involve risks and uncertainties. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, the company's ability to produce and market products and/or services and other risks detailed from time to time in the company's reports filed with the Securities and Exchange Commission.

Caye Chapel, Inc. web site: http://www.jstocks.com/caye.html

   CONTACT:  C. Jones & Co.
              Allen Jones, 303/470-8783