Epic Energy updates drilling activity.

VANCOUVER, British Columbia--(BUSINESS WIRE)--June 28, 1995-- EPIC Energy Inc. (ASE:EPI) announced today that its second discovery confirmation well, Aktash 109-02, in the Aktash Field, in Crimea, Ukraine tested at 280 barrels per day from a one-metre zone.

"These initial results, from the lowermost primary reservoir at 367 metres depth, suggest that this well has a higher production potential than our original estimates had indicated," Ronald Cormick, EPIC's chairman said. This is consistent with earlier tests of the first well, Aktash 104-01, located about 1300 metres to the east.

After it finishes testing this first zone in Aktash 109-02, EPIC will move back up the well and perforate Horizon IA. This 2-metre zone, at 328 metres depth, also appears from the well logs to be oil saturated.

The Aktash field is the first new oil field being developed by EPIC. A preliminary development plan for Aktash was filed with the Ukraine authorities prior to starting EPIC's present test well program. Based on the available data at the time, the plan calls for 30 wells at approximately 30-acre spacing to completely produce the field. Although it is still too early in the test program to calculate the final well-spacing, a reasonable scenario exists. At 30 wells averaging 250 barrels per day, EPIC's gross production share during cost recovery would be 6000 barrels per day and, after cost recovery, 4500 barrels per day. The declining life of the field is expected to be across a 10 year period.

During the past few months, the company has been evaluating three additional shallow oil field discoveries and ten undrilled, shallow oil prospects recently developed by our partners. All of these oil field targets are in the Aktash vicinity. Detailed studies have significantly upgraded the proven and probable recoverable oil reserves. These satellite oil field opportunities are planned for immediate evaluation after the test program is completed at Aktash.

Once the revised development plan for Aktash has been approved by the Ukraine officials, the field will be quickly brought into full production. Both EPIC and the local authorities plan to be exporting their oil to market this fall.

The shallow oil fields project is EPIC's first, near term revenue generator in a long series of planned petroleum development projects within Crimea. The company holds the exclusive right to explore and develop oil and gas resources in its 11,000 square-mile on-shore contract area. Initial estimates indicate a potential of more than 1.34 billion barrels of oil equivalent in the region.

THE ALBERTA STOCK EXCHANGE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN.

CONTACT: The Company's offices, [phone]

Ron Cormick, [phone]