Carmanah Secures Rigs for Natuna and Langsa Projects in Indonesia.

CALGARY, ALBERTA--(BUSINESS WIRE)--Oct. 15, 1997--Carmanah (TSE CKM.) Carmanah Resources Ltd. ("CKM"- TSE) announced today it has entered into a Letter of Intent with P.T. Hitek Nusantara Offshore Drilling ("PT Hitek") to engage two additional drilling rigs in 1998 to conduct operations at Northeast Natuna and Langsa, both offshore Indonesia.

Pursuant to the terms of the agreement, the Sedco 601 semi-submersible rig, currently working in Thailand, will be contracted to Carmanah's wholly-owned subsidiary, GFB Resources (Natuna) Limited, the operator of the Northeast Natuna PSC, for a firm period of 30 days with an option, exercisable on or before January 31, 1998, for a further 60 days. This will facilitate the drilling of the first exploratory well on the seismically-defined Terumbu reef prospect on the PSC, commencing on or about May 1, 1998. A decision on drilling a second well on the Natuna PSC with the Sedco 601 during 1998 will await interpretation of new seismic scheduled for later this year. This should be completed prior to the January 31, 1998 exercise date.

Simultaneously, Carmanah's wholly-owned subsidiary, GFB Resources (Langsa) Limited, ("GFB Langsa"), the operator of the Langsa TAC, will contract the Trident 9 jackup rig for a firm period of forty days with an option of another forty days, to be exercised prior to commencement of field operations, likely to occur on or about March 1, 1998. The Trident 9 will be utilized to re-enter and complete a minimum of two of the four existing wells at Langsa with a view to production startup on July 1, 1998 at forecast rates of 5,000 BOPD. GFB Langsa is presently finalizing a Plan of Development for Pertamina approval later this year which incorporates this early production system and a permanently-moored storage tanker. The decision to exercise the option for a second forty-day period will depend in large measure on the availability, on a timely basis, of subsea wellheads to enable completion of the remaining two wells at Langsa. Should this occur, production targets would then be raised to 9,000 to 10,000 BOPD. GFB Langsa is also presently in negotiations to secure a suitable tanker capable of storing 200,000 to 300,000 barrels of Langsa crude oil, thereby permitting periodic liftings or sales every 30 to 60 days. The tanker would be contracted under a long-term charterparty arrangement.

The successful negotiations to secure the Sedco 601 for Natuna and the Trident 9 for Langsa is a major development for Carmanah, especially in the context of a tight market for rigs in southeast Asia. Carmanah had previously announced a third rig will be utilized at its Camar field, also offshore Indonesia, for an extensive development drilling and tieback program scheduled to occur throughout the first half of 1998.

The two development programs at Camar and Langsa will materially impact on production levels in 1998 and beyond, while the drilling program at Natuna exposes Carmanah's shareholders to a high potential exploratory play at no cost to the company.

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

403/266-5042 (FAX)