Pan East Petroleum enters into an agreement with Amoco Canada

Business Wire, Feb 29, 1996

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 29, 1996--Pan East Petroleum Corp. is announced that it has entered into an agreement with Amoco Canada Petroleum Company Ltd. to jointly acquire additional interests in certain oil and gas assets and facilities in the Berland River Area presently owned by Canadian Hunter Exploration Ltd.

As a result of this agreement Pan East's interest in the Berland River Area will increase from 50 percent to 70 percent and it will continue to act as operator. The purchase price for the assets is $37.5 million of which Pan East's share is $15 million.

As a result of reaching this agreement, Pan East has advised the Court of Queen's Bench of Alberta that it will not be proceeding with its application for injunctive relief the purpose of which was to prevent the disposition of the assets by Canadian Hunter to Amoco. Pan East has also agreed to discontinue legal proceedings against Amoco and other parties.

CONTACT: Pan East Petroleum Corp., Calgary

Richard A. Walls, 403/234-7477