MMRL Acquiring Interests in the North Sea

Morrison Middlefield Resources Limited ("MMRL") is pleased to announce that it, together with Bow Valley Energy Ltd. ("Bow Valley"), have made an offer to acquire Croft Oil and Gas plc ("Croft"), an independent UK oil and gas company which has been involved principally in North Sea exploration. MMRL and Bow Valley will each own 50% of Croft.

The acquisition will provide MMRL with a significant working interest in a number of development projects in the UK sector of the North Sea ("UKNS"). Upon completion of the transaction, MMRL will have a 12.5% interest in Block 29/2c on which the Kyle oil field is being developed by Ranger Oil (UK) Limited, as operator. Further development work in the field will be conducted during 1997, and it is expected that a delineation well will be drilled during the year. A long term production test is planned for this well during 1998 with full scale development to follow a successful testing program. Croft is also negotiating with a major international oil and gas company for the purchase of their interest in four oil and gas/condensate fields in the UKNS. Croft has a small working interest in three producing oil fields in the UKNS which add 265 barrels a day of production to MMRL.

This acquisition will add over 9 million barrels of reserves to MMRL and if development proceeds as planned, it will add 4,800 barrels of oil per day to MMRL's production by 1999. The total cost to MMRL for its share of the Croft acquisition, planned follow up acquisitions and development work to the end of 1997 is $19 million.

MMRL and Bow Valley have received unconditional undertakings to tender to the offer from major shareholders of Croft representing 75.6% of the issued shares.

MMRL is 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 20, 1997