Ocelot Energy enters third PSC in Gabon

June 26, 1997 Ocelot Maghena Gabon Inc., has entered into an Exploration and Production Sharing Contract with the State of Gabon for the Maghena Permit No. G4-182. The Contract provides exclusive rights to explore a 1,064 sq km area located between the permit areas under previously announced Production Sharing Contracts. Ocelot considers that the area of the Maghena Permit provides a natural extension to its existing holdings in the Ocelot Panthere Nze and the Ocelot M'Bindji Permits awarded in December 1996. As a result, Ocelot now has development and exploratory rights on three blocks totalling 4,952 sq km (1.2 million acres).
Ocelot is currently conducting a 3D seismic program over one of the five previously discovered oil pools located in its Panthere Nze and M'Bindji permit areas. A drilling and workover rig has been contracted and is scheduled to commence work on the NYOB-1 well in September 1997. This well was drilled on the Panthere Nze Permit in 1988 and flow tested at a rate of over 1,400 barrelsof oil per day at that time. The well is currently suspended, however, production is expected by year end 1997.