ENERGY POWER SYSTEMS LIMITED
NEWS RELEASE
ENERGY POWER REPORTS ADDITIONAL RESULTS ON MULTI-WELL DRILL
PROGRAM
Toronto, March 20, 2002. Energy Power Systems Limited (OTC BB:
EYPSF & Frankfurt Stock Exchange: EPW) (www.epsx.com) ("Energy
Power" or the "Company") announces 3 of 4 wells drilled as part
of its multi-well drilling program to be completed as
producers.
In October of 2001 the Company commenced a drilling and
exploration program focused on prospective properties located
in proven productive areas of Alberta, Canada. The multi well
program involved partnering and farm-in alliances with other
oil and gas companies to share risk and diversify
opportunities.
Farrow, Alberta: The Company has a 31.5% interest a half
section of land (320 acres) and recently acquired an additional
31.5% interest in a full section of land (640 gross acres). An
appraisal well was drilled on the half section and is currently
pumping oil at a restricted rate of 35 barrels of oil per day
(bbls/d) from the Glauconite formation. The Company has
surveyed the next location and anticipates drilling another
well by mid April, 2002. Seismic and geological evaluations
and production and engineering models supports potential
reserves of 145,000 barrels of oil per 40 acre spacing unit,
for a total estimated reserve of 1,160,000 bbls of oil (100%)
on the Farrow lands. Development drilling could allow up to 10
additional wells on the Farrow lands.
Edson, Alberta: The Company has a 10% interest in three
(3) sections (1,920 gross acres). The Edson well was drilled to
a depth of approximately 10,350 feet (3,150 metres) to the
Winterburn formation. Testing of this well indicates
potential production rates of 1.5 million cubic feet per day of
natural gas production and is currently waiting on tie-in.
Proven reserves exceed 5 billion cubic feet of natural gas for
this well. (100%)
Cherhill, Alberta: Energy Power has a 30% interest in one
(1) section of land (640 gross acres). A shallow well was
drilled to a depth of approximately 1,970 feet (600 metres) to
the Belly River Gas formation. Subsequent testing of the well
indicates the Belly River formation does not contain economic
reserves and has been shut in. The Company and its partners
are assessing the potential of a separate Belly River zone on
the North half of the section and a deeper zone on this
property.
Caroline Property, Alberta: The Company paid a 22.5%
interest and has earned a 16.875% interest in one (1) section
of land (640 gross acres). The well was drilled to a depth of
approximately 9,100 feet (2,750 metres) and was cased as
potential Glauconite gas well and an Elkton oil well.
Subsequent testing has indicated that the Rundle zone is in
communication with the old Rundle pool to the west and is
capable of 30 bbls/d. The Rundle was suspended to test the
Glauconite. The Glauconite has been tested at rates exceeding
500 thousand cubic feet per day with 15 bbls/d oil. Reserve
calculations and potential tie-in options are being
investigated. The well is expected to be on production prior
to May 30, 2002.
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Prince Edward Island Property: The Company has a 25%
interest in a property consisting of six exploration permits
(525,000 gross acres) perspective for both conventional and
coalbed methane gas. The property is located within central
Prince Edward Island, Canada and is underlain by Carboniferous
and Permian sedimentary strata of the Maritimes Basin. An
exploration program focusing on geophysics has been ongoing
with over 600 kilometres of seismic converted to digital format
and interpreted and an additional 400 kilometres of seismic
data has been purchased, reprocessed and interpreted for map
generation. Consulting geologist and geophysicist have
proposed an expanded seismic program, among other sciences, to
help identify a multi well drilling and primarily natural gas
exploration program anticipated in 2002.
About Energy Power Systems Limited
Energy Power is an integrated energy source and service
company operating as an Engineering & Offshore Division and an
Oil & Gas Division.
There are approximately 10.5 million shares issued and
outstanding in the capital of the Company.
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For further information contact: Sandra J. Hall
VP Corporate Affairs
Telephone: (416) 861-1484
Certain of the statements contained in this news release are
forward-looking statements. While these statements reflect the
Corporation's current beliefs, they are subject to
uncertainties and risks that could cause actual results to
differ materially. These factors include, but are not limited
to, the demand for the Corporation's products and services,
economic and competitive conditions, access to debt or equity
capital on favorable terms, and other risks detailed in the
Corporation's Form 20-F and Annual Report.
Suite 301, 2 Adelaide Street West, Toronto ON M5H 1L6
Telephone: (416) 861-1484, Facsimile: (416) 861-9623
www.epsx.com