Benz Announces Outstanding Development Results At Oakvale Dome Field in Mississippi

HOUSTON (March 4) BUSINESS WIRE -March 4, 1999--Benz Energy Ltd. (VSE:BZG) today announces the production test rate of its previously announced development well at its Oakvale Dome Field, Jefferson Davis County, Miss. Initial tests indicated a commercial production rate of 21.1 million cubic feet of gas per day (MMCFPD) and 19 barrels of condensate per day while still producing 100 barrels per day of unrecovered stimulation fluid. The Company owns a 55.6% working interest in the well and anticipates a higher gas production rate following full recovery of the fluid.

The Howell No.1 development well was logged and completed in three of four sands in the Hosston formation between 15,200 and 15,900 feet. Flowing tubing pressure reached a maximum of 3,810 psig prior to being choked back to 11.7 (MMCFPD) due to current pipeline constraints. The Company is completing the installation of additional pipeline capacity and anticipates producing the well at a steady rate of 17 MMCFPD. The discovery well of the field, the Byrd 31-1 No.1, is still producing at its peak rate of 10.4 MMCFPD after 18 months of production from the fourth Hosston sand not being produced in the Howell No.1.

The Company is currently drilling a second development well at Oakvale Dome, the Fortenberry No.1, where the Company owns a 70% working interest. The well is currently drilling at a depth of approximately 13, 917' and has intermediate casing set to 12,840'. The Fortenberry No.1 was initially drilled to 15,616' depth with mud log shows in multiple intervals prior to encountering mechanical difficulties and a subsequent sidetrack.

Prentis Tomlinson, chief executive officer and chairman of Benz Energy, stated, "This initial production rate confirms that our discovery at Oakvale Dome is one of the more impressive new gas fields in recent years in the onshore U.S. Gulf Coast region. Based on the 3-D seismic survey of the field, we anticipate three or more wells will be required to fully develop the numerous productive formations indicated by logs and drilling results and the fault blocks delineated by the 3-D survey."

Benz Energy Ltd. is an exploration and development oil and gas company based in Houston focused on natural gas in the onshore U.S. Gulf Coast region of Mississippi, Texas, and Louisiana.

Cautionary Statement as to Forward-Looking Information

Investors are cautioned that the preceding statements of the Company include certain estimates, assumptions and other forward-looking information ("forward-looking statements ((information))"). The actual future performance, developments and/or results of the Company may differ materially from any or all of the forward-looking statements (information), which include current expectations, estimates and projections, in all or part attributable to general economic conditions and other risks, uncertainties and circumstances partly or totally outside the control of the Company, including rates of inflation, natural gas prices, reserve estimates, drilling risks, future production of oil and gas, changes in future costs and expenses related to oil and gas activities and hedging, financing availability and other risks related to financial activities.

The Vancouver Stock Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

-0- MJB/ho*

CONTACT: Benz Energy Ltd., Houston

          Mark Kahil, 713/739-0351 

Fax: 713/739-8402

          E-mail: mkahil@benzenergy.com 

KEYWORD: TEXAS MISSISSIPPI LOUISIANA
INDUSTRY KEYWORD: OIL/GAS ENERGY Today's News On The Net - Business
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