Canadian 88 Energy Corp.: Exploitation Focus Adds Significant Opportunities at Olds.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 22, 2001

Canadian 88 Energy Corp. of Calgary, Alberta (AMEX:EEE) (TSE:EEE.) announced today the results of its successful 100% working interest Wabamun and Viking drilling program in the Olds area.

Wabamun Drilling results

The Company has successfully drilled, and put on production the 15-28-31-01W5 horizontal well in its 100% owned Olds Unit. The well was drilled in December, 2000 and put on production on January 10th, 2001. The well is currently producing at a restricted (choked) rate of 10 mmcf/d (282 10(3)m(3)/d) of raw gas and 180 bbl/d of condensate at a flowing tubing pressure of 870 psi (6,000 kPa).

This horizontal well targeted an area of highly fractured dolomite mapped from recently reprocessed 3-D seismic. The success of this horizontal well plays a significant role in development of the Olds field where the 3-D seismic results will be used to locate future horizontal wells in the highly fractured areas of the field. This highly prospective development program is expected to result in significant increases in production rates and reserves. In the Olds area, Canadian 88 has 75 undrilled sections of land that continue to be the target of the ongoing horizontal drilling program.

Viking Drilling results

The exploitation focus at Olds has identified a significant number of shallow gas Viking drilling opportunities. The Company has successfully drilled and completed three 100% working interest Viking gas wells. These three wells are part of a new drilling program targeting both new pools and extension of existing pools:

      -- 2-24-31-1W5 new pool discovery was drilled and put on production
in October, 2000. The well is currently producing at 1.5 mmcf/d (44
10(3)m(3)/d) at 385 psi (2,650 kPa) tubing pressure from the Viking
zone.
      -- 8-23-31-1W5 was drilled in December 2000 as a follow up to the
2-24-31-1W5 well. This well flowed at 2.1 mmcf/d (60 10(3)m(3)/d) at
800 psi (5,550 kPa) and is expected to be on production by mid
February, 2000.
      -- 2-14-31-1W5 was drilled and completed in December 2000 as an
extension of an existing Viking pool. This well flowed at 0.9 mmcf/d
(25 10(3)m(3)/d) at 36 psi (248 kPa) and is expected to be on
production this week.

The success of the recent Wabamun and Viking drilling programs is a good example of the significant exploitation opportunities at Olds where the Company has over 70,000 acres of net undeveloped land, 318 square miles of high resolution 3-D seismic and 100% ownership in the Olds Gas Plant.

The Company has extended the access to its data rooms by one week in response to requests from a number of interested parties. The Special Committee of the Board of Directors will continue to ensure that stakeholders are updated at key points in this active sales process.

Canadian 88 Energy Corp. (EEE) is an independent public oil and gas company with its head office in Calgary, Alberta, Canada. The shares of Canadian 88 Energy Corp. are traded on the Toronto and American Stock Exchanges.

The information contained herein has neither been approved nor disapproved by the respective Exchanges.