Canadian 88 launches large fall multi-well deep foothills gas drilling program.

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 9, 1996--Canadian 88 Energy Corp. (TSE, ASE SYMBOL:EEE) of Calgary, Alberta announced today that it is preparing to launch a major deep natural gas drilling program in the Alberta foothills.

Canadian 88 will spend approximately $20 million prior to yearend drilling, completing and tieing-in a minimum of 10 deep gas wells in the area. The exploration program will concentrate on the multi-zone potential of West Central Alberta, focusing on Devonian and Mississippian Formations utilizing the benefits of extensive 2-D and 3-D seismic conducted by Canadian 88 over the past twelve months and a number of the wells will utilize deep horizontal gas drilling techniques recently successfully developed and applied by Canadian 88 in the area.

The initial deep test in the new program is preparing to spud at 8-10-29-3 W5. The well is a Beaverhill Lake (Swan Hills) test licensed to a depth of 3,750 meters. Canadian 88 is operator and holds a 50 percent working interest in the deep gas prospect with a senior production company. The well is the first of 2 Beaverhill Lake prospects planned in the Cremona area by Canadian 88 and its partner within the next six months. If successful, the well will be tied into Canadian 88's 100 percent working interest Olds Gas Plant, which is preparing to undergo a $20 million expansion of throughput processing capability from 70 to 140 million cubic feet per day in 1997. Gross drilling costs are estimated at $2.5 million per well.

At Chedderville, near Caroline Alberta, Canadian 88 recently completed an extensive 3-D seismic survey which has confirmed numerous exploration locations on Canadian 88 lands in the area. A 100 percent working interest exploration well, testing the Leduc Formation to a depth of 3600 meters, is slated for drilling commencing prior to the end of September. Drilling and completion costs are estimated at $2.5 million.

At Natook, just north of Canadian 88's 70,000 contiguous acre Olds Gas Unit #1, the company is preparing to spud the first of three 100 percent working interest Mississippian gas tests using horizontal drilling technology successfully developed and applied by Canadian 88 operations staff over the past year. The prospect is similar in character to a recently announced horizontal discovery by Canadian 88 at nearby Harmatton. The Natook well, at 4-32-33-1 W5, will be drilled to a true measured depth of 3,250 meters, with a horizontal leg of 930 meters. Drilling and completion costs are estimated at $1.25 million per well.

Within the Olds Gas Unit, three 100 percent working interest horizontal gas wells targeting the Wabamum Formation are planned, with the initial test well having just been spudded. The 3 wells are Canadian 88's initial follow-up to 2 recent horizontal successes in the area, and are the first locations in what is expected to be at least a 20 well horizontal program targeting the Wabamum Formation at Olds. Drilling and completion costs are estimated at $1.5 million per well.

Canadian 88 has in addition made two new natural gas discoveries at Cygnet, in West Central Alberta, and at Frenchman's Butte. The discoveries compliment a recent string of successful exploration wells at Carstairs, Harmatton and Waterton, where further follow-up development drilling is planned prior to year-end.

Canadian 88 Energy Corp. is an independent exploration and production company with shares listed for trading on the Toronto and Alberta Stock Exchanges under the symbol EEE. -0-

NOTE TO EDITORS: The information contained herein has neither been approved nor disapproved by the Toronto and Alberta Stock Exchanges.

CONTACT: Canadian 88 Energy Corp., Calgary

Greg S. Noval, 403/974-8800; 403/974-8811 (FAX)