Cabre Reports Success at Rabeh-2 Well, Egypt.

CALGARY, Alberta--(BUSINESS WIRE)--Oct. 15, 1998--(TSE:CBE.) Cabre Exploration (Cyprus) Limited ("Cabre"), wholly-owned by Cabre Exploration Ltd., is pleased to report that the Rabeh-2 well in the West Esh El Mallaha ("WEEM") Concession, Egypt spudded September 10, 1998, 500m from the 1997 discovery well Rabeh-1, and has been drilled to total depth of 6426' in basement strata.

The well was subsequently logged, cased and tested initially through 50 feet of perforations in pre-Miocene Matulla sands. The well flowed 28.4 degrees API oil with minimal water and gas at 1630 B/D on a one-half inch choke. As the well is still cleaning up, a reliable production rate cannot yet be calculated. Testing of additional zones in the Matulla are planned. The Rabeh-2 well is also oil-bearing in the Miocene Nukhul formation, which is producing about 250 BOPD and equal volumes of water in Rabeh-1. Rabeh-1, which is some 120 feet structurally lower than Rabeh-2, tested 1570 BOPD from a different Matulla sand than tested in Rabeh-2.

The Sante Fe drilling rig was released from the Rabeh-2 location and spudded the Abu Marwa North-1 well on October 13, 1998. This well is targeting a potential separate fault structure some 1.9 km to the southeast. At least two more wells will be drilled following Abu Marwa North-1. In 1998 over 200 Km2 of 3-D seismic and 400 km of 2-D data was shot. Interpretation of these data is scheduled by early 1999 and is expected to identify additional drilling targets.

Production from the area is being trucked to tidewater. However, if sufficient volumes are established, a sales pipeline may be built by the Egyptian General Petroleum Corporation ("EGPC").

The operator of the WEEM Concession is ESHPETCO, a joint company set up by EGPC, Coplex (Egypt) Limited ("Coplex") and Cabre. Cabre and Coplex each hold a 50 percent interest in WEEM.