Danoil Updates Offer to Purchase.

CALGARY, Alberta--(BUSINESS WIRE)--July 14, 1997--Danoil(Alberta Stock Exchange DAN.A. ) Danoil Energy Ltd. is pleased to announce that its Offer to Purchase dated June 14,1997 for all of the outstanding common shares of Vintage Resource Corp. has resulted in the tender of 13,068,556 common shares (69.5 percent). These shares together with the shares already owned by Danoil, represent over 86 percent of the outstanding shares of Vintage. All of the conditions of the bid have been satisfied and Danoil has taken up and paid for all of the shares tendered to the bid resulting in the expenditure of approximately $8,000,000 and the the issuance of approximately 3,134,000 Class A shares.

Danoil intends to proceed to a second stage transaction to acquire those shares which were not tendered and intends to vote all of the shares acquired under the bid in favour of the amalgamation of the two companies. Prior to that undertaking, the offer will be extended for a further 10 days to July 21, 1997 in order to provide any shareholders who may have withheld their shares pending receipt of this information or shareholders who may not have tendered in a timely fashion the opportunity to accept the offer.

The combination of Danoil and Vintage results in a company with current production of 11 million cubic feet per day of natural gas and 2,200 barrels of oil per day (3,300 boepd).

Danoil is listed on the Alberta Stock Exchange under the symbol DAN.A.

The Alberta Stock Exchange has neither approved nor disapproved of the information contained herein.

CONTACT: Danoil Energy Ltd.

Jack C. Lee, 403/261-9010

FAX: [phone]

[e-mail]