Northrock Resources To Sell Properties.

CALGARY, Alberta--(BUSINESS WIRE)--Jan. 20, 1997--Northrock Resources (TSE: NRK.) Northrock Resources Ltd. ("Northrock") is pleased to announce that it has entered into an agreement to sell certain of its non-strategic crude oil and natural gas properties for proceeds of approximately $45 million. The sale is conditional on the purchaser completing an initial public offering, in the form of a royalty trust, which is expected to close on March 1, 1997.

Initial use of proceeds will be to reduce bank debt which will provide the Company with more flexibility to pursue additional exploration, development and acquisition opportunities. Based on a capital program of $76 million for 1997, debt at December 31, 1997 is anticipated to be less than 1.5 times cash flow for 1998.

The sale of the properties will have a positive impact on the overall cost structure of the Company which, combined with interest savings, will have a minimal impact on estimated 1997 cash flow. The properties being sold are mature producing properties with long life reserves and limited exploration and development upside. Based on a March 1, 1997 effective date, the impact on Northrock's 1997 production volumes is expected to be approximately 1,600 barrels of oil equivalent per day, including 14.8 million cubic feet per day of natural gas.

The Company is proceeding with a very active exploration and development program in West Central Alberta, the Williston Basin and at Red Rock. Nine rigs are currently drilling, including seven rigs in the West Central Alberta area, with three rigs expected to be added during the first quarter. The 1996 exit production rate for the Company was in excess of 11,500 barrels of oil equivalent per day. Exploration and development activity during the first quarter of 1997 is expected to fully replace the production loss from the property sales.

In West Central Alberta, since the acquisition of Inland Gas & Oil Ltd. in August, 1996, the Company has drilled 15 successful wells and one abandonment. This activity has provided current volumes of more than 4,700 barrels of oil equivalent per day from the West Central area, up from 1,600 barrels per day at the time of the acquisition. In the first quarter, over 70 percent of the drilling activity will be operated by the Company. In addition, Northrock has entered into a significant farm-in agreement covering approximately 100 sections of land contiguous to the Company's existing land base in West Central Alberta.

In the Williston Basin, the Company continues to have ongoing success with its exploration initiative. A new light oil pool was discovered in the Rocanville area in Saskatchewan and is estimated to include at least 10 million barrels of oil in place. An active development program and waterflood installation is currently underway. In addition, the Company has discovered two light oil pools in the Birdtail area in Manitoba and, in the first quarter of 1997, will be participating in its first Ordovician test in Southeast Saskatchewan.

At Red Rock, in Northwest Alberta, the Company has drilled three successful wells and is currently drilling the fourth of 16 natural gas wells planned for the year.

The Company expects to drill approximately 150 wells in 1997 which will provide average 1997 production volumes of approximately 15,000 barrels of oil equivalent per day, after the impact of the sale of these non-strategic crude oil and gas properties.

Northrock is an oil and gas company listed on The Toronto Stock Exchange trading under the symbol "NRK".

CONTACT: Northrock Resources Ltd.

Don R. Hansen, 403/269-3100

403/232-4650 (FAX)

or

Northrock Resources Ltd.

John H. Van de Pol, 403/269-3100

403/232-4650 (FAX)