News Release July 18, 2000

FOR IMMEDIATE RELEASE

EUB APPROVES AVALANCHE WELL AND SPACING APPLICATIONS

Calgary, Alberta (July 18, 2000) The Alberta Energy and Utilities Board (the Board) today issued Decision 2000-49, approving Avalanche Energy Limited's application for reduced spacing at its natural gas development in the Keoma area, about 20 kilometres east of Calgary. The Board also reinstated three well licences that had been suspended until the hearing was concluded.

The Board found no relationship between the sweet, shallow gas well drilling and the poor water quality of the domestic water wells located in the hamlet. However, to provide additional assurance to the interveners, the well licence approvals carry the condition that Avalanche must recondition a local resident's water well and temporarily install a pressure sensor to determine if drilling, fracturing and completion activities can be detected at the water well.

Prior to the issuance or reinstatement of the applications, Avalanche must also provide the Board with documentation to demonstrate its ongoing commitment to EUB notification and public consultation requirements.

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This news release and Decision 2000-49 are available on the EUB Web site at http://www.ercb.ca.

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