Chancellor Energy acquisition update -- Chancellor Energy Resources Inc. and Northridge Exploration announce completion of plan of arrangement.

CALGARY, Alberta--(BUSINESS WIRE)--July 24, 1995--Chancellor Energy (Alberta Stock Exchange: CHC) -- Chancellor Energy Resources Inc. and Northridge Exploration Ltd. announced that the Arrangement pursuant to the Business Corporations Act (Alberta) involving Northridge, its shareholders and Chancellor became effective on July 21, 1995.

Pursuant to the Arrangement, all common shares of Northridge were transferred to Chancellor and the previous shareholders of Northridge were entitled to receive, for each of their Northridge common shares, either: (i) 0.428 common shares of Chancellor, or (ii) $0.75 cash subject to an aggregate maximum cash payment of $7,400,000.

As a result of the Arrangement, Northridge became a wholly-owned subsidiary of Chancellor. After giving effect to the issuance of all shares pursuant to the Arrangement, Chancellor has 59,566,787 common shares outstanding.

The common shares of Chancellor trade on the Toronto and Alberta stock exchanges under the trading symbol "CHC."

CONTACT: Chancellor Energy Resources Inc., Calgary

T.J. MacKay or Doug Baker, 403/233-8426;

403/265-6032 (fax) REPEATS: New York 212-575-8822 or 800-221-2462; Boston 617-330-5311 or

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