First Calgary Petroleums Ltd. (FCP) announces its results for the year ended December 31, 2007. During 2007 FCP made significant progress in preparing for development and production of its natural gas and natural gas liquids reserves underlying its MLE field in Algeria. The Company also completed appraisal work in the Central Area Field Complex (CAFC) and ZER structural areas. Based on data compiled thorough the appraisal phase, FCP is currently evaluating commerciality and development plans for these two areas.
2007 HIGHLIGHTS
MLE Activity:
• Approval by the Government of Algeria for MLE field development;
• Completion of the Front End Engineering and Design (FEED) project which defined the gas plant, pipeline and gathering systems required for production as well as a detailed cost estimate;
• Gas plant approval with a planned capacity of 260 million cubic feet per day (mmcf/d) of natural gas and 20 thousand barrels per day (b/d) of natural gas liquids (NGLs);
• Gas marketing terms with Sonatrach were agreed for an initial 200 mmcf/d of natural gas at competitive prices;
• Engineering, Procurement and Construction (EPC) contracts tendered February 18, 2007, with four firms expressing an interest in submitting a bid and awarding of a contract is scheduled for July 2008;
• Preparations for project financing progressing with FCP’s project debt finance advisor Citibank; and
• Initiated development drilling within the MLE Field area with the spud of MLE-7.
CAFC and ZER Activity
• Granting of a two-year extension of the PSC for completion of the commerciality reports;
• Completion of appraisal program (drilling and testing) in CAFC and ZER areas; and
• Initiated studies and work program to complete commercialization evaluation, with the expectation of submitting development plans to the Algerian authorities by the end of the second quarter of 2008.
“We are extremely pleased with the progress made during 2007,” commented President and Chief Executive OfficerRichard G. Anderson.
“We believe we are 30 months from production of reserves from Block 405b, which is the culmination of six years of work by First Calgary. This represents a very significant achievement for the Company and its shareholders.”