Carmanah Drilling at Natuna Underway.

CALGARY, ALBERTA--(BUSINESS WIRE)--April 27, 1998--Carmanah Resources (TSE:CKM.) Carmanah Resources Ltd. ("CKM" - TSE) announced today that its wholly-owned subsidiary, GFB Resources (Natuna) Limited, the operator of the Northeast Natuna Production Sharing Contract in Indonesia, commenced drilling the Durian Besar-1 well at 1830 hours on April 27, 1998 utilizing the Sedco 600 semi-submersible rig. The well is a scheduled 4,800 foot test to evaluate the hydrocarbon-bearing potential of a large, seismically-defined Miocene Terumbu reef and is located in 554 feet of water. It may be deepened if the target reservoir is still hydrocarbon-bearing at the proposed total depth. A total of 32 days have been budgeted for the well, including drilling to the prognosed depth and testing.

Participants in the well include Carmanah/GFB, PT Binatek Reka Natuna and Esso Exploration and Production Durian Besar Ltd., an affiliate of Exxon Corporation, which company is incurring the costs of the well pursuant to a Farmout Agreement.

The Toronto Stock Exchange has neither approved nor disapproved the contents hereof.

CONTACT: Carmanah Resources Ltd.

Mr. R. A. Gusella, 403/266-4975

403/266-5042 (FAX)

[e-mail]

or

Carmanah Resources Ltd.

Mr. A. F. Badwi, 403/266-4975