Enterprise Oil Limited

Enterprise Oil Limited

October 17, 2006 12:19 ET

Enterprise Oil Limited Plans to Repurchase Shares

ST. ALBERT, ALBERTA--(CCNMatthews - Oct. 17, 2006) - Enterprise Oil Limited (TSX VENTURE:EON) (the "Corporation" or "Enterprise") announced that it has filed with the TSX Venture Exchange (the "Exchange") a Notice of Intention to Make a Normal Course Issuer Bid which shall commence on October 23, 2006 and terminate on October 22, 2007 or the earlier of the date all shares which are subject to the Normal Course Issuer Bid are purchased.

The Board of Directors of Enterprise believes that the market price of the common shares of the Corporation (the "Common Shares") does not accurately reflect the value of those shares. As a result, Enterprise's Common Shares may become available for purchase at prices which make them an appropriate use of funds of the Corporation.

The Corporation intends to attempt to acquire up to an aggregate of 1,267,185 of its Common Shares over the next 12-month period representing approximately 5% of its 25,343,700 issued and outstanding Common Shares.

Purchases subject to this Normal Course Issuer Bid will be carried out pursuant to open market transactions through the facilities of the Exchange. All Common Shares purchased by the Corporation under the Normal Course Issuer Bid will be cancelled.

Forward Looking Statements

This press release contains certain "forward-looking" statements and information relating to the Corporation that are based on the beliefs of the Corporation's management as well as assumptions made by and information currently available to the Corporation's management. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitation, competitive factors, general economic conditions, customer relations, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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