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 VANCOUVER, British Columbia, Oct. 28 /PRNewswire/ -- R. Campbell Todd, president of Prairie Pacific Energy Corp. (NASDAQ: PRPEF; Alberta: PRP) ("Prairie Pacific") advised that, further to Prairie Pacific's announcement of Aug. 5, 1993, (the "Prior Announcement") it has closed in escrow the first part of the offering of its Common Shares referred to in the Prior Announcement.
 The first part of the offering which closed in escrow and is effective as of the 30th day of September 1993 involves the issuance by Prairie Pacific to ESG Trust I, a trust resident in Bridgetown, Barbados, of (i) 500,000 Prairie Pacific Common Shares and (ii) 50,000 warrants, each such warrant entitling ESG Trust I to purchase one Prairie Pacific Common Share at an exercise price of $1.52 on or before 4:30 p.m., (Vancouver Time) on Sept. 30, 1995, in exchange for the assignment to Prairie Pacific of an asset backed convertible note issued to ESG Trust I by Euro Scotia Funding Limited having a principal amount of C$760,000.00 and maturing Jan. 28, 1994. It is anticipated that all conditions precedent necessary for the release of the escrow shall be satisfied no later than Nov. 5, 1993.
 The second part of the offering referred to in the Prior Announcement, the offering of Prairie Pacific Common Shares restricted to residents of Europe, is scheduled to close on Nov. 15, 1993.
 Prairie Pacific will use the net proceeds from the first and second part of the offering for general working capital purposes to permit it to commence an intensive development program which in its initial stage will involve the drilling of some 39 gas wells and 10 oil wells on company operated acreage in which the company holds various working interests.
 In addition to the aforementioned development program, in recent weeks the company has participated with Gulf Canada to the extent of a 12.5 percent working interest in the completion of a Zama formation oil well at 4-31-114-5 W6. This well was placed on production and is currently producing at a rate of 225 bbls oil per day. Work is also scheduled to commence to tie-in the Home-Prairie 16-16-84-16 W6 well at Cecil Lake, Northeastern British Columbia, to the Home Oil-Prairie Pacific Plant at 6-14-84 W6. Extensive production testing of this well has resulted in rates in excess of 40 bbls of high gravity crude oil and 1.2 mmcf of gas per day. Prairie Pacific has a 50 percent working interest in the 16-16 well.
 Prairie Pacific's shares are traded through the facilities of NASDAQ (Symbol: PRPEF) in the United States and The Alberta Stock Exchange (Symbol: PRP) in Canada. Prairie Pacific is also listed in Standard & Poor's Corporate Records.
 -0- 10/28/93
 /CONTACT: Malcolm F.W. Todd, VP, 604-684-2356/

CO: Prairie Pacific Energy Corp. ST: British Columbia IN: OIL SU: OFR

JB-EH -- LA027 -- 8005 10/28/93 14:05 EDT
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Publication:PR Newswire
Date:Oct 28, 1993

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