Norcen Earnings Turnaround; $18 Million Profit in 1995 from $114 Million Loss in 1994; Company Sets a 10 Year in Reserve Replacement through drilling

Business Wire, Feb 7, 1996

CALGARY, Alberta--(BUSINESS WIRE)--Feb. 7, 1996--NORCEN ENERGY (TSE, ME: NCN)--

Highlights Year-end Results:

- 130 percent reserve replacement from drilling sets 10 year record - Finding and development costs reduced to $6.35 per boe. - 13 percent growth in core area production - Over $600 million in proceeds from asset rationalization - Debt to cash flow ratio reduced to 2.5 years from 3.7 years Fourth Quarter: - Sale of interest in IOC closed for net proceeds of $273 million - Gain of $3 million net of write downs and provisions - Continued growth from capital expenditure program

                        three months ended       year ended
                            December 31         December 31
                         1995       1994      1995      1994
---------------------------------------------------------------
Financial (millions of dollars except per share amounts)

Sales and Other Revenues $ 325     $  372    $1,266    $1,315
Net Earnings (Loss)      $  12     $ (152)   $   18    $ (114)
  Per common share
    basic and fully
     diluted             $0.14     $(1.84)    $0.22    $(1.39)

Cash Flow                $ 107     $  106     $ 392    $  395
  Per common share
    basic                $1.29      $1.28     $4.73    $ 4.77
    fully diluted        $1.12      $1.11     $4.12    $ 4.15

Capital Expenditures      $ 70      $ 123     $ 382    $  382
Short and Long-Term Debt
 (net of cash and accrued
      sales proceeds)                          $594    $1,051
Convertible Debentures                         $400    $  400
Common Shareholders'
 Equity                                      $1,205    $1,242
Common shares
 outstanding (000's)                         82,973    82,603

Operating

Production
     Oil (mb/d) (xx)        60.2     61.5      62.4      57.8
     Natural gas
      liquids (mb/d)         5.8      8.0       6.2       8.1
     Natural gas
      (mmcf/d)               454      569       504       554
Average Prices Received
     Oil (per bbl)        $18.13   $17.63    $19.77    $18.45
     Natural gas liquids
      (per bbl)           $15.33   $14.12    $16.28    $13.37
     Natural gas
      (per mcf)           $ 1.74   $ 1.85    $ 1.63    $ 1.85
Wells Drilled
     Gross                    91      111       425       462
     Net                      60       59       238       235
     Success Ratio
      (in percents)           78       84        78        84
Sales of Propane
   (millions of litres)      527      504     1,846     1,869

    (x)  BOE = Barrel of oil equivalent using 10 mcf = 1 barrel /
    (xx) Russian production excluded because of the uneconomic nature of
         Norcen's Russian operations.