Canrise Resources Ltd. closes major core area property acquisition.

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 4, 1997--Canrise Resources Ltd. announced today that it has completed the acquisition of Mobil Oil Canada, Ltd.'s oil and gas assets in the McLeod Area of Alberta for $22.95 million. The effective date of the acquisition was January 1, 1997. The purchase was financed by $15.75 million raised from the sale of 2.25 million Special Warrants on January 28, 1997 and the remainder through utilization of a portion of the Corporation's newly expanded $45 million bank credit facility.

The assets acquired include various interests in 45 sections of Crown land of which 22 are undeveloped, 20 (7.3 net) producing gas wells of which 12 are operated, and 3 (1.4 net) capped gas wells of which 2 are operated. Current net sales production from the acquired properties is approximately 6,600 mcf/d of natural gas and 260 bbls/d of associated NGL.

Of strategic importance, the acquisition also includes a 33.3% interest in a gross 21,000 mcf/d, deep-cut, operated gas plant and a 37.5% interest in a gross 21,000 mcf/d, deep-cut, non-operated gas plant. Overall, the acquisition will allow Canrise to significantly reduce the third-party processing fees it currently pays to plant owners, and also affords Canrise ready processing and market access for additional production from its 1997 area drilling program.

The acquisition value is split between the reserves and strategic plant interests. An independent engineering evaluation of the assets by Brusset Consultants as at January 1, 1997, estimates Proven reserves to be 2 million boe, and 50% Probable reserves to be 0.381 million boe. The estimated present value before income taxes of Proved plus 50% Probable reserves is $24.87 million discounted at 15%.

The property is adjacent to Canrise's successful core exploration prospects at McLeod and Niton. Canrise commenced area operations in late 1995 and now generates net sales production of 6,700 mcf/d of natural gas and 260 bbls/d of NGL from four wells. In 1997, the Corporation anticipates drilling as many as 7 (3.8 net) initial locations on the Mobil lands for an aggregate 20 (10.8 net) area locations.

Including the Mobil assets purchased, Canrise's current net sales production is approximately 22,600 mcf/d of natural gas and 1,050 bbls/d of oil/NGL. The Corporation anticipates the tie-in of several recent successes over the next several months. Corporately, Canrise has budgeted for the drilling of 40 (25 net) wells in 1997 throughout its focus area of west central Alberta.

Giving effect for the Mobil acquisition, the Corporation has bank debt of $14.9 million and assuming the exercise of the Special Warrants upon clearance of the final prospectus there will be 14,032,599 shares outstanding. Canrise is an Alberta based corporation engaged in the exploration, development and acquisition of oil and gas properties in Western Canada. Canrise is listed on the Toronto Stock Exchange under the trading symbol CRE.

The Toronto Stock Exchange has neither approved or disapproved the information contained herein.

CONTACT: Peter J. Kurceba David M. Fisher, CA

1-888-262-3385 1-888-262-3385

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