OIL AND GAS INDUSTRY POSTS GOOD PERFORMANCE IN 2004

The oil and gas industry in Saskatchewan has posted another solid year of drilling activity.

Year-end statistics indicate a total of 3,673 oil and gas wells were drilled in the province in 2004, the fourth highest year on record.

Drilling was down slightly from the record 4,195 wells drilled in 2003, due mainly to the cool and wetter than normal spring and summer.

A total of 1,930 gas wells and 1,743 oil wells were drilled in 2004.

"The oil and gas industry continues to invest in Saskatchewan, confirming the province is a good place to do business," Industry and Resources Minister Eric Cline said. "The strong drilling numbers for 2004 are building on the success of last year, and have contributed to our province's economic growth through investment and job creation."

The highest well count was registered in the Swift Current region, where 1,356 wells were drilled, primarily for natural gas. The Lloydminster area was second with 1,028 wells drilled, followed by the Kindersley area with 742 wells and the Estevan area with 547 wells drilled.

Cline said the robust drilling activity can be attributed to strong oil and gas prices combined with Saskatchewan's competitive fiscal regime.

The oil and gas industry continues to be the largest contributor to the provincial Gross Domestic Product (GDP), investing an estimated $1.7 billion last year in new exploration and development activity and maintaining 24,000 direct and indirect jobs in the province.

-30-

For More Information, Contact:

Bob Ellis Industry and Resources Regina Cell: (306) 539-6948