Doreal Energy Reports on the Nine Months September 30, 1996.

VANCOUVER, BRITISH COLUMBIA--(BUSINESS WIRE)--Nov. 7, 1996--DOREAL ENERGY CORP.(Alberta Stock Exchange DOY.)

PROJECT STATUS Portugal

During the first half of 1996, 225 kilometers of seismic were acquired on the 465,000 acre license. This delineation seismic has been processed, integrated with the existing 1,000 kilometers of seismic and interpreted. Several large drillable prospects have been identified having potential closure of 10,000 to 40,000 acres. Surface permitting of the first location is now underway with drilling to start in the second quarter of 1997. Doreal has a 10 percent working interest and a 9.15 percent net revenue interest.

Colombia

In the Llanos Basin, 83 kilometers of new seismic have been combined with over 1,000 kilometers of prior data, confirming nine drillable prospects on the license. Permit requests have been submitted for exploratory drilling of the Matequefa prospect having an anticipated spud date of January 1, 1997. Doreal has a 12.5 percent working interest and an 11.67 percent net revenue interest in this 240,000 acre license.

USA

The Williston Basin re-entry program, using proprietary log analysis, has been delayed until 1997 due to excessive land costs tied to deeper exploration in the area.

In a second project in the Williston Basin, Doreal has committed to an exploration test of the Mississippian Midale and Mission Canyon Formations, with drilling expected to commence in early November, 1996. Doreal has a 50 percent working interest, a 37.53 percent net revenue interest before payout in the initial two wells on the acreage. After payout, Doreal will have a 30 percent net revenue interest and will have the right to maintain a 37.53 percent interest in the balance of the 1,600 acre block.

England

The operator has completed a first draft interpretation of the re-processed seismic data and has been granted an extension to January 15, 1997. Doreal has a 16.67 percent working interest and a 16.67 percent net revenue interest in the 58,387 acre licence.

CORPORATE

Doreal was listed and began trading July 30, 1996 on the Alberta Stock Exchange. The initial public offering was 4,500,000 units at $0.50 and raised $2,004,281 net to Doreal. Each unit included one share and one warrant. The warrants expire April 24, 1997 and two warrants entitle the holder to purchase one share at $0.85 per share. For a consecutive 20 day trading period, the weighted average closing price of the shares exceeded $1.25. As a result, Doreal has the right to send notice that the expiry date of the warrants has been moved forward to a date that is 30 days from the notice date. As of the end of the period Doreal has not exercised this right but is encouraged that more than 200,000 warrants have been voluntarily exercised.

INVESTOR RELATIONS

A corporate profile was prepared during the period to respond to shareholder and stockbroker enquiries. A Web Page is being maintained on the Internet for the convenience of shareholders and investors.

Management conducted a number of presentations to Members of the Alberta, Vancouver and Toronto Stock Exchanges during the period. -0-

FINANCIAL HIGHLIGHTS

ASSETS
Current Assets               $  1,236,689
Oil & Gas Properties            1,312,771
                             ------------
Total Assets                 $  2,549,460

LIABILITIES
Current Liabilities          $     51,410
Long Term Liabilities                   0
                             ------------
Total Liabilities            $     51,410

NET WORTH                    $  2,498,050

REVENUE
Interest                     $     13,049
Expenses                         (238,150)
                             -------------
Loss for Period              $   (225,101)

Deficit - End of period      $   (241,717)

-0- On Behalf of the Board of Directors James H. Dorman, President & CEO -0- The Alberta Stock Exchange has neither approved nor disapproved the information contained herein.

CONTACT: Doreal Energy Corp.

Ian Gallie, 250/598-9091 or

Damien Reynolds, 604/681-2802

INTERNET: http://www.dorealenergy.com