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PRESS RELEASE September 16, 2002 Deer Lake Oil & Gas Inc. (a Newfoundland based Corporation) is pleased to report that the Securities Commission of Newfoundland and Labrador has approved its application to become an Issuer of Record under the Newfoundland Securities Act and has approved its initial prospectus to distribute shares of the Corporation to the public. Under the terms of the approved prospectus, Deer Lake Oil & Gas Inc. is authorized to issue up to 5,000,000 common shares to the public within the province at a price of $0.60. Deer Lake Oil & Gas Inc. is engaged in the search for oil and gas in Western Newfoundland where it holds oil & gas exploration rights on 4 separate properties covering a total of 95,260 hectares. The Corporation holds 29,200 hectares in the onshore Deer Lake Basin, 2000 hectares on two separate properties onshore in the Port au Port Bay area and a 65,060 hectare offshore block in Bay St. George. It is currently concentrating its drilling and exploration activities in the Deer Lake Basin. The Honourable John C. Crosbie, Chairman of the Board, stated that, “The approval of our initial prospectus marks a major milestone in the development of our Corporation”. “We are,” he said, “committed to the development of our properties and the Corporation in an aggressive and business-like manner”. He noted that under the terms of the approved prospectus, shares may only be purchased directly through the Corporation with Mr. Ian Clouston acting as the Corporation’s representative and that there was a minimum purchase of $4,500. He said that the purchase of shares carried with it certain income tax benefits and share purchase warrant rights. Mr. Crosbie noted that funds raised under the initial prospectus will, in the first instance, be used to complete the drilling of its currently suspended Western Adventure #2 well to 1300m to test potential reservoirs within the sand dominated North Brook Formation on the Western Adventure Structure (a fault bounded anticlinal feature that covers some 20 sq km). Future activities will include further seismic in the Deer Lake Basin and the drilling of the JP Howley #1 well on a separate structure in the Deer Lake Basin and exploration activities on the remaining of the Corporation’s properties. “We are encouraged, ” he said, “by the fact that the Western Adventure #2 well is located some 3 km south of the Claybar #1 well which was drilled to a depth of 457m in 1956 and encountered a gas blowout at 335m. He noted that the Western Adventure #2 well is located some 7 km north of the Corporation’s Western Adventure #1 well which was also drilled on the Western Adventure Structure and was drilled to 1879m in 2000/2001 and encountered condensate (light oil) and tested gas on Drill Stem Test at a maximum flow rate of 100,000 cubic feet per day. Mr. Crosbie also noted that the vast majority of the more than $1.7 million invested in the Company’s Deer Lake property so far had come from shareholders resident in the Province. “We have,” he said, “a strong technical team with experienced oilfield consultants and service contractors from Alberta, Texas and Oklahoma, plus a growing local expertise. We are dedicated to maximizing long term shareholder value by strategic land acquisition and the use of innovative drilling and other exploration practices.” The Board of Directors of Deer Lake Oil & Gas Inc. consists of : The Honourable John C. Crosbie (Chairman) The offices of the Corporation are located in St. John’s, Newfoundland. The Corporation’s Web site is www.deerlakeoilandgas.com. For further information |