September 29, 1998
Morrison Middlefield
Announces
Successful Kyle Well
Ranger Oil (Operator) announced today that it has successfully tested appraisal well 29/2c-12Z on the Kyle field located in the UK sector of the North Sea in Block 29/2c. The well tested up to a rate of 9,750 barrels of oil per day limited by a restricted choke and processing facilities on the drilling rig.
Ranger Oil reported that they are extremely pleased with the results of this well. They state that it has a calculated productivity in excess of 20,000 barrels of oil per day. MMRL has a net interest of 12.5% in the Kyle field.
Ranger Oil and its partners will now be seeking approval for Phase I Development of the Kyle field, with first oil production planned to commence in March of 1999 via a subsea tie-back to the "Ramform Banff", a floating production, storage and offloading facility, located approximately 12 kms north of Kyle.
Phase I production experience will enable Phase II Development to be optimized, commencing with a further well in 1999.
Partners in the Kyle field are:
| Ranger Oil (Operator) | 40% |
| Premier Pict Petroleum Limited | 35% |
| Candecca Resources Limited (wholly owned subsidiary of MMRL) | 11.25% |
| Bow Valley Petroleum (UK) Limited | 11.25% |
| Croft Exploration Limited (50% owned by MMRL) | 2.5% |
The common shares of the company are listed on the Toronto Stock Exchange under the symbol MM.
For further information contact:
| In the UK: Peter A. Braaten President 0171-814-6644 |
In Canada: Mark Caranci Vice President 416-362-0714 |