ELK POINT RESOURCES INC. BOOSTS PRODUCTION AND CASH FLOW.

CALGARY, ALBERTA--(BUSINESS WIRE)--AUGUST 28, 1995--ELK POINT RESOURCES(Alberta Stock Exchange: ELK ) Elk Point Resources Inc. ("Elk Point") generated $1,067,466 in funds flow from operations for the first half of 1995 compared to $250,614 for the same period in 1994. This notable increase was directly attributable to the Company's significant production gains. The Company recorded net income of $33,466 for the six months ended June 30, 1995 compared to net income of $25,614 for the same period in 1994.

Elk Point recorded gross revenue, net of royalties totaling $2,084,543 for the reported period in 1995 compared to $653,201 for the six months ended June 30, 1994.

Elk Point's average sales of natural gas were 7,754 thousand cubic feet per day for the first half of 1995, an increase of 605 percent from the 1,100 thousand cubic feet per day reported for the same period in 1994. The Company's oil production increased to 68 barrels per day for the

Elk Point participated in the drilling of five gross (2.35 net) wells during the first six months of 1995. Three (1.35 net) of these wells were cased

In the second quarter of 1995, Elk Point increased its working interests in ten producing oil wells and two producing natural gas wells in the Saddle.

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

CONTACT: FOR FURTHER INFORMATION PLEASE CONTACT:

Mr. Aidan M. Walsh

President and Chief Executive Officer

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