CORDEX completes the drilling of the Lago X-2 Wildcat Well in the Bermejo Basin, and acquires additional development acreage in the Austral Basin Argentina.

DENVER--(BUSINESS WIRE)--Dec. 18, 1996--CZX.A (TSE CZX.A.) CORDEX Petroleums Inc. announces that it has plugged and abandoned the Lago X-2 well on December 17th, 1996. The well bottomed in Paleozoic age claystone at a total depth of 847m. No significant oil or gas shows were encountered while drilling this exploratory well. lago X-2 was located in the Mogna block (CCyB-4), Bermejo Basin, Central Argentina at 30 degrees 58' 08.4" S latitude and 68 degrees 25' 08.9" W longitude. The well spudded on December 11th.

Based on the negative results of the Lago X-1 and X-2 wells, CORDEX and its partner, Monument Exploracion Limited, plan to relinquish the Rodeo and Mogna blocks.

CORDEX has acquired an additional 16.66 percent interest from Edival S.A. in the 104,000 acre, Laguna Los Capones block (CA-2) located in the Austral basin. With this purchase, CORDEX now holds 66.6 percent interest in the block, and has taken over operations. Yacimiento Del Sur holds the remaining 33.33 percent interest in the block. Laguna Los Capones was discovered in the mid 1970's and initial production began in 1977 out of the Springhill sandstone at an average depth of 1300 m (4263'). The field is presently producing 140 BOPD from 5 wells. Cumulative production is 2.6 MMBO and 14.6 BCF of gas. Proven developed producing oil reserves net of royalties are 148,000 BO with 0.95 BCF of gas. Probable oil reserves net of royalties in the field are 17,000 BO with 3.87 BCF of gas. Additional probable and possible reserves on associated structures are mapped using available well and seismic control near the field. Other exploration prospects have been mapped on the block.

CONTACT: CORDEX Petroleums Inc.

Bob Zilinski, 303/297-2016 x-122