GULF INDONESIA ANNOUNCES POSITIVE DRILLING RESULTS IN SOUTH JAMBI B PSC

DENVER, March 31 /PRNewswire/ -- Gulf Indonesia Resources Limited (NYSE: GRL) announced today the results of a natural gas delineation well drilled in the South Jambi B Production Sharing Contract (PSC) area located in south Sumatra, Indonesia. The South Jambi B PSC is adjacent to and northwest of the Gulf-operated Corridor PSC and lies within 50 kilometers of the natural gas pipeline leading to Duri from the recently completed Corridor natural gas plant at Grissik.

The Teluk Rendah 2 well in the north end of the South Jambi B block tested two zones that flowed a combined 14.1 million cubic feet of natural gas and 292 barrels of condensate per day through a 1/2-inch choke. In the upper zone, five perforated intervals between 1,729 and 1,760 meters drilling depth flowed 8.1 million cubic feet of gas and 156 barrels of condensate per day. The lower zone tested perforations of two intervals between 1,767 and 1,777 meters drilling depth and flowed 6.0 million cubic feet of gas and 136 barrels of condensate per day. The gas tested from both zones has a very low, three per cent, carbon dioxide (CO(2)) content.

Teluk Rendah is located in close proximity to previous low CO(2) discoveries in the South Jambi B block at Hari and Geger. The Hari 3 delineation well is scheduled to begin drilling in April 1999.

Natural gas reserves at Teluk Rendah, Hari, Geger and reserves in fields in the southern part of the South Jambi B block will be available to supply the previously announced project to export gas from Sumatra to Singapore. The Company expects to book significant proved and probable reserves in the block in 1999.

Gulf Indonesia holds a 45 per cent working interest in the South Jambi
B Production Sharing Contract and is contract operator for Pertamina,
the Indonesian state oil company. Gulf Indonesia is 72 per cent owned
by Gulf Canada Resources Limited (NYSE, Toronto, Montreal: GOU).
Partners are TOTAL of France with 30 per cent and Pertamina with 25 per
cent.
SOURCE Gulf Indonesia Resources Limited

-0-                             03/31/99 /CONTACT:  Investor Relations 
and Public Affairs of Gulf Indonesia Resources Limited, 888-937-4636, 
or 303-813-3800/ 

(GRL GOU GOU.)
CO: Gulf Indonesia Resources Limited; Gulf Canada Resources Limited
ST: Colorado IN: OIL SU: DSC