PRESS RELEASE

October 11, 2002

Deer Lake Oil & Gas Inc., as operator and 100% working interest holder in Exploration Permit EP 93 – 103, is pleased to announce that its Western Adventure #2 well in the Deer Lake Basin (onshore Western Newfoundland) has been drilled and intermediate casing set to 490m.

Western Adventure #2 is targeting intervals of the Carboniferous-aged, sandstone dominated North Brook Formation which is projected to have a seismically-defined gross thickness in excess of 800m at the Western Adventure #2 location.

Drilling operations will now continue to a planned total depth of 1300m after which the well will be evaluated. This well is being continuously cored using a slimhole rig.

Western Adventure #2 is a follow up well to the Corporation’s Western Adventure #1 well which was drilled to 1879m in 2000/2001 on the Western Adventure Structure some 7km to the southwest of the Western Adventure #2 location.

Western Adventure #1 encountered gas flows and condensate shows on Drill Stem Test.

Deer Lake Oil and Gas Inc is an independent oil and gas exploration company based in St. John’s, Newfoundland and is active onshore and offshore in Western Newfoundland.

For further information please refer to the Corporation’s website

www.deerlakeoilandgas.com or email cabot@deerlakeoilandgas.com

or Phone 709-579-5050 or Fax 709-726-0584