SignalEnergy Inc.

January 28, 2005 23:59 ET

SignalEnergy Inc. Announces Closing of Acquisition and Corporate Update

CALGARY--(CCNMatthews - Jan. 28) - SignalEnergy Inc. ("Signal") is
pleased to announce the closing of the Privateco acquisition whose main
asset is in the Chigwell region of Central Alberta. Combined with the
successful acquisition of Predator Exploration Ltd. ("Predator"), which
closed on January 20th, Signal has significantly increased its asset
base and production levels.

Management is now focused on integration of the three companies and
high-grading growth opportunities for 2005. Capital expenditures for
the first quarter will amount to approximately $3.6 million focused
primarily on exploitation of its properties in the Carrot Creek/Kaybob,
Buick Creek and Chigwell areas. Operations already underway and planned
for the remainder of the quarter include:

- Two wells to be drilled, including a multi target 2500 m well to be
drilled in Grizzly and the second in Twining targeting Viking and
Edmonton sand/CBM potential.

- Completion of 10-12 wells which include five wells in Twining drilled
in Q4-2004 to complete the earning and evaluation phase of the
company's CBM development project, two wells in Carrot Creek/Kaybob,
two re-completions of suspended wells in Buick Creek and finally two
re-completions in Chigwell targeting Ostracod gas and one tie-in.

Operations Update:

Signal operations:

During the three month period ending December 31, 2004 Signal drilled
two gross (2 net) wells resulting in two gross (2 net) potential gas
wells. One location was drilled in the company's Twining area to
complete the earning phase of a prior farm-in and is currently being
completed. Completion of the five standing wells drilled in Twining in
2004 is currently underway resulting in one potential gas well to date
with the other four locations still being tested and evaluated. In
Ferrier, a well drilled in Q1-04 was tied in adding roughly 30 Boe/d
net initial production. During Q4-04, Signal applied to the Alberta
Energy Utility Board to allow commingling of production from Edmonton
sands and Horseshoe Canyon coals, approval for which is expected to be
received in early 2005.

In Carrot Creek, Signal drilled a 2500 m well (100% working interest)
prior to year-end that was cased as a potential multi-zone gas well.
Completion operations commenced in mid-January and the first of two
zones has been successfully completed in the Rock Creek formation. Tie-
in to a nearby gas gathering system has commenced and this new pool
discovery is anticipated to be producing by the end of March, 2005. The
Rock Creek is now shut-in while a second zone in this wellbore is
evaluated over the next two weeks.

Predator operations:

In Kaybob, field operations are ongoing to complete the evaluation
phase of Predator's Viking development program. One of the three wells
drilled in 2003 has been abandoned and a second location is currently
waiting on a frac to complete the evaluation. The third location will
be completed in the Viking pending results of the second well.

In Sundre, the 12-20-32-6W5 well has been placed on production from an
Ostracod zone adding initial rates of 500 mcf/d gross (Net 40 Boe/d).
Signal is planning to complete the Viking zone in the Sundre well
before the end of the quarter.

Privateco operations:

In Chigwell, field operations are ongoing on three operations including
two re-entries and equip and tie-in of a non-operated Belly River well
completed in Q4-2004. Plans for Chigwell in Q1-2005 include two
additional re-completion opportunities and four non-operated CBM
development locations at an average working interest of 44.5%.

Corporate Update:

Concurrent with the closing of the corporate acquisitions of Predator
and Privateco, the following appointments have been made to Signal's
management team and Board of Directors:

Michael Wuetherick P.Eng. Signal's current Vice President, Corporate
Development & CFO has also been appointed Chief Operating Officer.
Michael was appointed an officer of Signal on December 18, 2003
concurrent with the re-capitalization of SignalGene. Michael has
15 years of oil and gas experience including facilities, production and
reservoir engineering in senior executive and management roles of both
junior and senior companies. Michael will continue to oversee the
financial and business development roles of the company.

Tim Campbell, P Land has been appointed Vice President, Land effective
January 1, 2005. Tim's experience includes 27 years of industry
experience including senior executive and management positions at
junior and intermediate companies. Tim's extensive experience and
contacts in the industry will provide Signal with increased exposure to
new drilling opportunities.

Brian Doherty, P. Geol has been appointed Vice President, Exploration
effective January 20, 2005. Previously, Brian served as Vice President
- Exploration of Predator Exploration Ltd. Brian has 25 years of
experience in the Western Canadian Sedimentary Basin working for both
junior and senior companies. Brian's focus at Signal will be to expand
the conventional prospect inventory including exploration prospects.

Randy Harrison, P.Land. who was previously the Chairman of the Board
for Predator Exploration Ltd. has been appointed to the Board of
Directors of Signal. Randy is a professional landman with over 23 years
of industry experience including Senior Executive positions with
several public and private oil and gas companies. Randy is currently
President and Chief Executive Officer of Stallion Energy Inc., a
private oil and gas company.

SignalEnergy Inc. is a Calgary-based, junior resource company engaged
in the exploration, development and production of natural gas and oil.
The common shares are listed on the Toronto Stock Exchange under the
symbol SGI.

This news release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction. The
Common Shares will not be and have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements.

Contact Information

  • SignalEnergy Inc.
    Mr. J. Cameron Bailey
    President and Chief Executive Officer
    (403) 290-2450
    (403) 398-3366 (FAX)