Dynamic Announces Reserve Estimates for Year Ending March 31, 2000.

Business Editors

RICHMOND, B.C.--(BUSINESS WIRE)--July 11, 2000

Dynamic (NASDAQ:DYOLF) (TSE:DOL.) is pleased to announce an increase in the discounted net present value ("NPV") of its proved and probable reserves. The increase is $C9.7 million (19%) over last year to $C61.3 million ($C3.11 per share, basic), is based on an annual cash flow discount rate of 10%.

The following table reports the Company's reserves independently estimated by Status Engineering and Associates Ltd., of Calgary, Alberta effective April 1, 2000.

Petroleum and Natural Gas                             Discounted NPV
Reserve Volume Estimate                                   $ Estimate
(Pre Taxes and Royalties)                                (Pre Taxes,
                                                    After Royalties)

                     Natural  NGL's/    Equivalent               10%
                       Gas      Oil    (mmcfe-10:1)          ($C000)
                      (mmcf) (mbbls)
--------------------------------------------------------------------
Proved Producing      29,212  1,759          46,802           44,980
Proved Non-Producing  11,510    448          15,990           13,700
Probable (risked 50%)  4,008     11           4,118            2,625
Total 2000            44,730  2,218          66,910           61,305
Total 1999            43,693  2,297          66,663           51,563
Increase (decrease)     2.4% (3.4%)            0.4%              19%

The discounted net present values reported above were determined using base prices of $C2.80 per mcf and $C28.00 per barrel of oil, escalating thereafter at 3.0% per annum. The estimated reserves and present values reported by Status Engineering are based on price forecasts used by a mix of independent consulting engineering firms and charter banks.

If the discounted net present value of the Company's year-end reserves were calculated using Dynamic's weight-averaged actual selling price for May, 2000 of $C3.69 per mcf for natural gas and $C35.20 per barrel for oil, the estimated value of total reserves would be $C83.1 million ($C4.22 per share, basic), using an annual cash flow discount rate of 10%, with product prices and associated operating costs remaining constant.

Production in 2000 increased 657 mmcfe or 11%, to 6,595 mmcfe over last year. Total reserves of natural gas increased this year over last by 2.4% net of production, while NGL's and oil decreased by 3.4%. Reserve additions replaced production by 103%.

New gas additions were comprised primarily of dry, sweet gas not suited for NGL extraction, which explains the decrease in NGL's and oil relative to the increase in natural gas reserves.

Capital expenditures increased in 2000 by C$1.0 million or 20%, to $C5.7 million over 1999. At St. Albert, the Company continued its program of drilling, re-completions, tie-ins and construction of new facilities. Also, exploration and development work began on the Peavey/Morinville properties.

The category this year with the largest increase ($C1.8 million) was "Land acquisitions". Among these, the acquisition of largest size, was the $C1.6 million purchase of 23,058 acres (approximately 36 sections) of contiguous Crown Petroleum and Natural Gas ("P&NG") rights in the Orion area of NE British Columbia at the Government Land Sale held in Victoria on October 20, 1999 and announced on October 22, 1999.

Dynamic has established a capital budget for 2001 of $C10.9 million. Of that amount, $C3.0 million is planned for spending at St. Albert and $C5.0 million for continuing work at Peavey/Morinville. A total of $C2.0 million is for the acquisition of new undeveloped acreage, in order to continue adding to the Company's inventory of growth opportunities. The balance of $C0.9 million is to be spent on exploring and developing newly-acquired properties. The Company has also established an expense budget for seismic of $C0.9 million for 2001.

Dynamic Oil & Gas, Inc. is a Canadian based energy company engaged in the production and exploration of Western Canada's natural gas and oil reserves. The Company owns significant working interests in several Central Alberta producing properties, and in two sizeable exploratory properties located in southwestern and northeastern British Columbia.

On Behalf of the Board of Directors Donald K. Umbach, Vice President and COO

The NASDAQ and Toronto Stock Exchanges have not reviewed nor accepted responsibility for accuracy of this release. Certain statements herein may not be historical facts and may be "forward looking statements" under U.S. securities laws. Such statements are based on management's beliefs, as well as assumptions made by information currently available to management. Forward-looking statements include those preceded by the words "estimate," "will," or words of similar expressions, and are subject to risks, uncertainties and other factors that could cause results to differ materially from expected results. Reserve estimation is an interpretive process based on drilling results and past experience as well as estimates of reservoir characteristics and flow rates, prices, costs of extraction and processing, capital expenditures and many other factors. Actual quality and characteristics of oil and gas accumulations cannot be known.