Castleguard Nearing Completion and Testing of New Gas Well in East Texas.

Business Editors

DALLAS--(BUSINESS WIRE)--Feb. 20, 2001

Castleguard Energy, Inc. (OTCBB Symbol: MOAT), a Dallas-based independent oil and gas company, reports reaching total depth and setting casing on the Inman No.A2 in the Mings Chapel Field near Gilmer in East Texas.

The well, drilled to a total depth of 12,064 feet with approximately 94 feet of net pay, is awaiting completion and testing.

"What we like about the Mings Chapel Field is its history of solid, long-term natural gas production," Scott Heape, Castleguard Chairman, said. "Based on the results of testing on the Inman No.A2, Castleguard has five additional drilling sites in the Mings Chapel Field ready to go."

Castleguard Energy, Inc. holds working interests in properties located in Texas, Louisiana and Alabama. Castleguard focuses on development projects, joint working relationships and non-operated properties.

This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Although Castleguard believes that its expectations are based on reasonable assumptions, it can give no assurance that its goals will be achieved. Important factors that could cause actual results to differ materially from those in the forward-looking statements include political developments in foreign countries, federal and state regulatory developments, the timing and extent of changes in commodity prices, the timing and extent of success in drilling, discovering, developing and producing or acquiring oil and gas reserves, and conditions of the capital and equity markets during the periods covered by the forward-looking statements. Castleguard's periodic reports filed with the Securities and Exchange Commission include a discussion of important factors that could cause actual results to differ materially from those indicated in forward-looking statements.