Canadian 88 Energy Corp. and Prize Energy Inc. Announce Major Wyoming Foothills Natural Gas Discovery.

CALGARY, Alberta--(BUSINESS WIRE)--May 19, 1999--

Canadian 88 Energy Corp. (AMEX:EEE)(TSE:EEE)(ASE:EEE) and Prize Energy Inc. (ASE:PZI) of Calgary, Alberta, Canada announced today that they have successfully completed the drilling of their No. 1-10P Windy Point Federal Exploration Unit deep foothills exploration well in Western Wyoming. The Companies said in Calgary today that the test well has encountered significant natural gas pay in the Mississippian Mission Canyon formation.

The Windy Point well is one of the first deep exploration wells to be drilled in southwest Wyoming in the last ten years and was directionally drilled to a total depth of 14,483 feet into the Mississippian aged Mission Canyon formation on the Windy Point Federal Unit in the Overthrust Belt of Wyoming's Green River Basin.

Canadian 88 President Greg Noval said in Calgary today that the test well encountered over 600 feet of highly fractured, structurally high dolomite in the Mission Canyon formation. The Company said that completion operations on the well will commence within the next 30 days and the plans are underway to commence the drilling of several follow-up wells.

The Windy Point Federal Exploration Unit comprises some 7,029 gross acres in the Foothills Overthrust Belt in Lincoln County, Wyoming. The acreage is located approximately 35 miles north of Evanston, Wyoming in a prolific oil and gas producing area. Canadian 88's prospect is the result of the Company targetting a large seismically defined satellite feature adjacent to the giant Whitney Canyon/Carter Creek Field, located approximately four miles southeast of the Windy Point Federal Unit boundaries which has estimated natural gas reserves of 5.3 Tcf and 115 mmbbls of liquids. The discovery well was directionally drilled re-entering an existing well from a surface location in NESW of Section 10, T19N-R120W at a cost of approximately US$3.2 million with Canadian 88 Energy (U.S.A.), Inc. paying 85 percent of the costs to earn 75 percent in the prospect and Prize Energy (U.S.A.) Inc. paying 15 percent of costs to earn 12.5 percent in the prospect. Redwood Energy, Ltd. (VSE:RWD) and Legacy Energy Corporation, a private Denver company have carried interests of 10.15635 percent and 2.34365 percent, respectively, in the test well.

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, Alberta and American Stock Exchanges.

The information contained herein has neither been approved nor disapproved by the Toronto, Alberta and American Stock Exchanges.