Leor Energy Strikes New Milestone: Gas Production from Amoruso Field Exceeds 90 MMcf/d, Up from 7 MMfc/d in April 2006.

HOUSTON -- Leor Energy announces that it has achieved a more than 10-fold increase in natural gas production in Amoruso Field in Robertson County, Texas, since last spring. During December 2006, gas production from Amoruso Field exceeded 90 MMcf/d gross. This milestone was a result of another in a series of successful Deep Bossier completions for Leor and its operational partner, a subsidiary of EnCana Corporation (NYSE:ECA). In July 2006, Leor Energy sold EnCana approximately 3,360 net acres in its Amoruso Field for $242.9 million.

Leor and EnCana continue to enjoy a 100 percent success rate in wells drilled in Amoruso Field. Each of their first 14 wells drilled in Robertson County, Texas are producing from Deep Bossier target sands and additional multi-zone completions are scheduled in four of those wells. One of Leor's best wells at Amoruso Field, completed in late June 2006, is still operating at a flow rate of approximately 30 MMcf/d from only one completed zone. Leor believes this well to be among the largest gas wells in North America producing from a single completed zone.

Commenting on the operational update, Guma Aguiar, Leor Energy's CEO, said: "Leor and EnCana have been enormously successful in our mutual undertaking to develop the Deep Bossier and in particular Amoruso Field. We are very pleased that we have been able to ramp up production from 7 MMcf/d to more than 90 MMcf/d in just the past nine months. Our first three wells gave us technical challenges even though we encountered multiple gas-charged sand packages. However, after having climbed the learning curve, our last 11 wells have had average initial production rates in excess of 12.0 MMcf/d.

Armed with these results, Leor and EnCana are aggressively moving to develop the Amoruso Field. After beginning 2006 with only two rigs, Leor and EnCana currently have seven rigs running in Robertson County. Along with the rigs, the two companies have contracted for a 3-D shoot at Amoruso Field, which is currently underway, with data deliveries expected in the third quarter of 2007.

Mr. Aguiar continued: "The geographical spread of our best wells has validated the geological concept across our acreage position, providing us with significant running room for development. Strategically, Leor and EnCana will be offsetting some of our most prolific producing wells in 2007, and as a consequence we hope to materially ramp up daily production rates. Moreover, our initial production numbers don't tell the whole picture in terms of what these wells are capable of producing due to additional sand packages in our wells, which haven't been completed. In 2007, we have plans to add additional completions in numerous wells to augment our production."

Mr. Aguiar concluded: "A time normalized comparison from the first month of daily production shows convincingly that our joint-venture has significantly outperformed other operators in the most prolific unconventional gas basins, now the major drivers of onshore natural gas reserve growth. The operational management team we have assembled, along with the outstanding job which EnCana has done operating, deserves to be recognized as having performed in a way that is nothing less than exemplary."

About Leor Energy: Leor Energy, based in Houston, Texas, is one of the fastest-growing privately held oil and gas exploration and production companies in North America. Leor is an active player in the Deep Bossier trend, one of the most promising recent unconventional gas exploration plays. Including its interests in Amoruso Field, which is operated by a subsidiary of EnCana Corp. (NYSE:ECA), Leor Energy holds interests in over 150,000 acres in the Deep Bossier trend. Over the next eighteen months, Leor plans to drill several exploratory wells targeting Deep Bossier sands outside of Amoruso Field. The first of these wells spudded in the fourth quarter of 2006 and is permitted to approximately 18,000 feet. Other companies currently active in the Deep Bossier trend include: Anadarko Petroleum Corp. (NYSE:APC); Chesapeake Energy Corp. (NYSE:CHK); ConocoPhillips (NYSE:COP); and XTO Energy Inc. (NYSE:XTO).