Epic Energy Corporate Update.

CALGARY, Alberta--(BUSINESS WIRE)--Sept. 29, 1997--Epic Energy Inc. (Alberta Stock Exchange EPI ) announced that it has retained the investment dealer firms of Loewen, Ondaatje, McCutcheon Limited and Canaccord Capital Corp. as joint financial advisors to assist in the development of a comprehensive action plan for the consideration and approval of the company's board of directors and to provide alternative to maximize shareholder value.

These alternatives may include farm-outs, joint ventures, acquisitions, dispositions, mergers or strategic business combinations.

With respect to current operations, the company plans to drill an additional two structures on the Kerch Peninsula, Crimea to satisfy its obligations under its Shallow Licensing Agreement. In total, Epic's Production Sharing Agreement encompasses a contract area of 7 million acres. With its Ukrainian partner, Epic will continue with the program necessary to realize the value of its contract area.

At two of Epic's scheduled locations, environmental issues have just been raised by local authorities with respect to past exploration and production activities in the Voykov and Priozernoye areas by others prior to the company's entry into Ukraine. The company has three other exploratory shallow oil prospects which can be drilled at low cost.

At this time, the company intends to obtain approval to substitute two of these prospects and defer the drilling of Voykov and Priozernoye until the local approval problems are resolved. The company is discontinuing further development drilling operations in the Aktash field as the production levels obtained do not warrant further investment.

Epic and Niko Resources have jointly evaluated certain geophysical prospects in the Middle Maykop which were the subject of a previously announced Middle Maykop letter of intent. Further examination of the Middle Maykop did not provide sufficient evidence of good reservoir development.

Epic's technical team is now focusing on Lower Maykop prospects which are known to contain significant accumulations of gas condensate as evidenced by the Fontanov field and the already discovered and larger Povorotnoye and Prederozhnoye reservoirs. An encouraging new oil prospect has already been identified.

These Lower Maykop oil and gas/condensate prospects will be included in the marketing packages being prepared for prospective investors.

During Sept. 1997, the company has had average production of 120 bpd from the Aktash field.

The company owns two western style drilling rigs and two western style work-over rigs, which are located in Crimea, capable of drilling up to 2,500 meters or working over wells to a depth of up to 3,500 meters, and a fleet of support vehicles and equipment needed for a self-sufficient drilling operations.

As at Aug. 31, 1997, the company has no debt and more than US$4 million in working capital available to fund continued operations on Crimea. Vigorous cost cutting is underway. Epic's Houston office is being closed to consolidate in Calgary. Epic and its Ukrainian partner will be reducing costs and staffing to appropriate levels in their joint operating company in Ukraine.

Epic Energy Inc. is a Canadian company listed on The Alberta Stock Exchange trading under the symbol EPI. Epic conducts exploration, drilling and production under a Production Sharing Agreement covering the Crimean Peninsula of Ukraine, an area of 7 million acres.

Epic's head office is in Calgary, Canada with its Ukrainian subsidiary's office located in Simferopol, Crimea, Ukraine. Operations in Ukraine are conducted by Epic's 60 percent owned subsidiary, Krym TexasNafta. The other 40 percent is held by Krymgeologia, a State of Geological Enterprise, a designate of the Ukrainian State Property Fund. -0- The Alberta Stock Exchange has neither approved nor disapproved information contained herein.

CONTACT: Epic Energy Inc.

George Stephenson, 403/543-5670