Canadian 88 Energy Corp. Announces Normal Course Issuer Bid.

Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--July 5, 2001

Canadian 88 Energy Corp. (AMEX:EEE)(TSE:EEE.) announced today that it will be proceeding with a normal course issuer bid to purchase, through the facilities of The Toronto Stock Exchange, up to 6.7 million of its common shares, representing slightly less than five percent of Canadian 88's 134 million issued and outstanding common shares.

A maximum of two percent of the outstanding common shares may be purchased in any 30 day period. Purchases by Canadian 88 can commence two trading days after acceptance by the TSE of Canadian 88's notice of intention to make a normal course issuer bid and will end no later than one year after the commencement of purchases.

Canadian 88 will pay the market price for its common shares on the TSE at the time of acquisition and no purchases will be made other than by means of open market transactions during the period the normal course issuer bid is outstanding. Canadian 88 has not purchased any of its common shares within the past 12 months, whether by way of normal course issuer bid or otherwise.

"We believe our common shares currently are undervalued by the market and do not reflect the financial strength and net asset value of the Company said Don Gardner, Executive Vice President and CFO. All common shares purchased under the issuer bid will be cancelled, increasing the respective proportionate share interests of all remaining shareholders."

The making of the normal course issuer bid by Canadian 88 is subject to the approval of The Toronto Stock Exchange.

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. For further information please contact: Forward Looking Information

This release contains statements that constitute forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and Section 21 of the Securities Exchange Act of 1934 and are subject to the safe harbor provisions of those sections and the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties including those described in our filings with Canadian and U.S. securities commissions, and that the actual results or developments may differ materially from those in the forward-looking statements as a result of various factors. We have based these forward-looking statements on information currently available and disclaim any intention or obligation to update or revise any forward-looking statement.