Chroma Energy and XL Petroleum Sign Exploration Agreement.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Aug. 20, 2002

Chroma Energy Inc. today announced that it has signed an exploration services agreement with XL Petroleum Limited, LLC of Tulsa, Okla., to provide seismic interpretation and prospect generation services in support of their ongoing exploration activities in the Atchafalaya Basin of southern Louisiana. Under the terms of the agreement, XL will have access to Chroma Energy's data mining and prospect generation services as well as its proprietary ImageGenetics(TM) pattern recognition and ChromaVision(TM) visualization software.

According to Don Voelte, CEO of Chroma Energy, "This agreement represents another significant step in the growth of Chroma's business. We are pleased that XL has recognized the value of Chroma's exploration experience and its proprietary technology. We are excited about the opportunity to explore in this highly prospective hydrocarbon province."

D.O. (Swede) Nelson, manager of XL commented, "I have watched with interest the development of Chroma's technology and its business offering. I am impressed by the speed and accuracy with which this revolutionary approach identifies quality leads and prospects. XL is extremely pleased to have Chroma Energy contribute to our exploration and development efforts."

Chroma Energy Inc. is an energy exploration company specializing in proprietary pattern recognition and visualization technology. The company develops high quality prospects by combining the proven oil and gas finding expertise of its staff with those of its partners' own exploration staffs. Utilizing standard geological / geophysical seismic interpretation packages and its own state-of-the-art proprietary pattern recognition and visualization tools, Chroma is able to reduce the cycle time from lead identification to drillable prospect. Chroma Energy has provided services and participated in more than three dozen projects with various domestic and international exploration and production firms since its founding.

Headquartered in Houston, Chroma Energy maintains its research and development facility in Boulder, Colo. For more information about Chroma Energy, visit www.chromaenergy.com

This news release contains forward-looking statements that are based on current expectations subject to various risks and uncertainties that could cause Chroma Energy's actual results to differ materially from those included in the forward-looking statements. Although Chroma Energy believes its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct. Factors that could cause actual results to differ materially from those contained in forward-looking statements include, but are not limited to, those relating to the results of exploratory drilling activities, fluctuations in oil and natural gas prices, operating risks, regulatory and environmental matters, capital requirements, availability of drilling rigs, weather, and the general condition of the economy and its effect on the securities market. Investors are directed to consider such risks and other uncertainties.