March 18, 1997 - Press Release

MMRL announces Record Earnings, Increased Dividend and Stock Split

Morrison Middlefield Resources Limited ("MMRL") is pleased to announce:

net earnings in 1996 were $13.9 million, up almost threefold over 1995 results;
cash flow in 1996 doubled to $34.8 million;
the quarterly dividend will increase 25% to $0.10 per share; and
shares will be split on a 2 for 1 basis effective June 4, 1997.

The comparative financial and operating results for the three and twelve month periods ending December 31, 1996 and 1995 are summarized as follows:

	THREE MONTHS ENDED		TWELVE MONTHS ENDED
	Dec. 31/96	Dec. 31/95	Dec. 31/96		Dec. 31/95
Income Statement ($ 000's)
Oil and gas revenues (gross)	19,935	8,608	56,152		32,473
Funds from operations	11,814	4,336	34,799		17,495
Earnings before taxes	7,878	1,895	17,277		5,604
Net earnings	5,134	1,364	13,858		5,019

Per Common Share ($)
Funds from operations
Basic	1.44	1.02	4.25		4.11
Fully diluted	1.28	0.64	3.81		2.49
Net earnings
Basic	0.62	0.32	1.69		1.18
Fully diluted	0.53	0.30	1.54		1.16
Dividends	0.08	0.08	0.32		0.08

Capital Expenditures ($ 000's)	52,799	12,817	79,096		72,490
				AS AT DEC. 31
			1996		1995
Balance Sheet ($ 000's)
Working capital			(14,280)		3,984
Total assets			192,160		89,812
Long-term debt			31,480		40,061
Shareholders' equity			96,288		43,375

Drilling Activity
(Gross number of working interest wells drilled)
Oil wells	2	6	21		20
Gas wells	3	-	4		-
Salt water disposal wells	-	-	-		1
Dry and abandoned wells	6	1	8		3
Total wells	11	7	33		24
Average working interest	50%	57%	67%		39%

Production
Canada: Oil & NGLs (bbl/d)	2,837	1,400	1,884		1,391
Gas (mcf/d)	14,298	4,862	9,404		1,590
UK: Oil & NGLs (bbl/d)	3,704	2,891	3,512		2,786
Gas (mcf/d)	764	377	829		290
Total: Oil & NGLs (bbl/d)	6,541	4,291	5,396		4,177
Gas (mcf/d)	15,062	5,239	10,233		1,880

Average Prices
Canada: Oil & NGLs ($/bbl)	27.94	17.88	24.58		19.85
Gas ($/mcf)	1.77	1.41	1.70		1.31
UK: Oil & NGLs ($/bbl)	33.05	22.17	27.82		22.32
Gas ($/mcf)	3.80	3.63	2.67		2.32
Total: Oil & NGLs ($/bbl)	30.78	20.77	26.67		21.49
Gas ($/mcf)	1.88	1.71	1.78		1.63

Stock-split
MMRL's Board of Directors has approved, subject to regulatory approval and approval by shareholders at the Annual and Special Meeting of Shareholders to be held May 22, 1997, a two for one stock split for registered shareholders as at June 4, 1997. The shares will begin trading on a split basis on June 2, 1997 and additional common share certificates will be issued to shareholders.

Dividend
MMRL has increased its quarterly dividend by 25% to $0.10 per share payable on March 31, 1997 to the common shareholders of record at the close of business on March 26, 1997.

The common shares of the company are listed on the Toronto Stock Exchange under the symbol MM.

For further information contact:
Mr. Raymond R. Pether
Chief Operating Officer
(416) 362-0714

March 18, 1997