Calpine Corporation and Encal Energy Ltd. Announce Completion of Merger

Apr 19, 2001, 01:00 ET from Calpine Corporation

    CALGARY, Alberta and SAN JOSE, Calif., April 19 /PRNewswire/ -- Encal
 Energy Ltd. ("Encal") (NYSE:   ECA; Toronto: ENL) and Calpine Corporation
 (NYSE:   CPN) announced today that the merger of the two companies has been
 completed.  Pursuant to the merger, Calpine Canada Holdings Ltd. issued
 approximately 16.6 million exchangeable shares, with each share being
 exchangeable at the shareholder's option, into shares of Calpine common stock
 on a one-for-one basis.  In addition, Calpine assumed approximately
 US$225 million in existing Encal debt.  The exchangeable shares will commence
 trading on The Toronto Stock Exchange on April 23, 2001 under the symbol CPX.
 With the completion of the transaction, Calpine gains approximately 1.0
 trillion cubic feet equivalent of proved and probable natural gas reserves,
 net of royalties.  The transaction also provides access to firm natural gas
 transportation capacity from western Canada to California and the eastern
 United States, and an accomplished management team capable, together with
 Calpine's existing management team, of leading Calpine's business expansion in
 Canada.
     The transaction increases Calpine's net production to approximately
 390 million cubic feet natural gas equivalent per day in North America.  Daily
 natural gas production under the combined companies' control will be
 sufficient to fuel approximately 2,300 megawatts of generation.  With this
 transaction, Calpine's proved and probable reserves will be approximately
 1.7 trillion cubic feet of natural gas equivalent, net of royalties.
     Based in San Jose, Calif., Calpine Corporation is dedicated to providing
 customers with reliable and competitively priced electricity.  Calpine is
 focused on clean, efficient, natural gas-fired generation and is the world's
 largest producer of renewable geothermal energy.  Calpine has launched the
 largest power development program in North America. To date, the company has
 approximately 31,200 megawatts of base load capacity and 6,800 megawatts of
 peaking capacity in operation, under construction, and in announced
 development in 28 states and Canada. The company was founded in 1984 and is
 publicly traded on the New York Stock Exchange under the symbol CPN. For more
 information about Calpine, visit its Website at www.calpine.com.
     The matters discussed in this news release may be considered
 "forward-looking" statements within the meaning of Section 27A of the
 Securities and Exchange Act of 1993, as amended, and Section 21E of the
 Securities Exchange Act of 1934, as amended.  Such statements include
 declarations regarding the intent, belief or current expectations of Encal and
 Calpine and their management.  Prospective investors are cautioned that any
 such forward-looking statements are not guarantees of future performance and
 involve a number of risks and uncertainties and actual results could differ
 materially from those indicated by such forward-looking statements.  Among the
 important factors that could cause results to differ materially from those
 indicated by such forward-looking statements are (i) that the information is
 of a preliminary nature and may be subject to further adjustments, (ii) risks
 associated with mergers including the ability to integrate Encal and Calpine
 operations, (iii) changes in government regulation, (iv) general operating
 risks, (v) the dependence on third parties, including Encal shareholders, (vi)
 the dependence on senior management, (vii) the successful exploitation of an
 oil or gas resource that ultimately depends upon the geology of the resource,
 the total amount and cost to develop recoverable reserves, and operational
 factors relating to the extraction of natural gas, and (viii) other risks
 identified from time to time in Encal's Annual Report and Annual Information
 Form filed with the Canadian regulatory authorities and Calpine's reports and
 registration statements filed with the Securities and Exchange Commission.
 
 

SOURCE Calpine Corporation
    CALGARY, Alberta and SAN JOSE, Calif., April 19 /PRNewswire/ -- Encal
 Energy Ltd. ("Encal") (NYSE:   ECA; Toronto: ENL) and Calpine Corporation
 (NYSE:   CPN) announced today that the merger of the two companies has been
 completed.  Pursuant to the merger, Calpine Canada Holdings Ltd. issued
 approximately 16.6 million exchangeable shares, with each share being
 exchangeable at the shareholder's option, into shares of Calpine common stock
 on a one-for-one basis.  In addition, Calpine assumed approximately
 US$225 million in existing Encal debt.  The exchangeable shares will commence
 trading on The Toronto Stock Exchange on April 23, 2001 under the symbol CPX.
 With the completion of the transaction, Calpine gains approximately 1.0
 trillion cubic feet equivalent of proved and probable natural gas reserves,
 net of royalties.  The transaction also provides access to firm natural gas
 transportation capacity from western Canada to California and the eastern
 United States, and an accomplished management team capable, together with
 Calpine's existing management team, of leading Calpine's business expansion in
 Canada.
     The transaction increases Calpine's net production to approximately
 390 million cubic feet natural gas equivalent per day in North America.  Daily
 natural gas production under the combined companies' control will be
 sufficient to fuel approximately 2,300 megawatts of generation.  With this
 transaction, Calpine's proved and probable reserves will be approximately
 1.7 trillion cubic feet of natural gas equivalent, net of royalties.
     Based in San Jose, Calif., Calpine Corporation is dedicated to providing
 customers with reliable and competitively priced electricity.  Calpine is
 focused on clean, efficient, natural gas-fired generation and is the world's
 largest producer of renewable geothermal energy.  Calpine has launched the
 largest power development program in North America. To date, the company has
 approximately 31,200 megawatts of base load capacity and 6,800 megawatts of
 peaking capacity in operation, under construction, and in announced
 development in 28 states and Canada. The company was founded in 1984 and is
 publicly traded on the New York Stock Exchange under the symbol CPN. For more
 information about Calpine, visit its Website at www.calpine.com.
     The matters discussed in this news release may be considered
 "forward-looking" statements within the meaning of Section 27A of the
 Securities and Exchange Act of 1993, as amended, and Section 21E of the
 Securities Exchange Act of 1934, as amended.  Such statements include
 declarations regarding the intent, belief or current expectations of Encal and
 Calpine and their management.  Prospective investors are cautioned that any
 such forward-looking statements are not guarantees of future performance and
 involve a number of risks and uncertainties and actual results could differ
 materially from those indicated by such forward-looking statements.  Among the
 important factors that could cause results to differ materially from those
 indicated by such forward-looking statements are (i) that the information is
 of a preliminary nature and may be subject to further adjustments, (ii) risks
 associated with mergers including the ability to integrate Encal and Calpine
 operations, (iii) changes in government regulation, (iv) general operating
 risks, (v) the dependence on third parties, including Encal shareholders, (vi)
 the dependence on senior management, (vii) the successful exploitation of an
 oil or gas resource that ultimately depends upon the geology of the resource,
 the total amount and cost to develop recoverable reserves, and operational
 factors relating to the extraction of natural gas, and (viii) other risks
 identified from time to time in Encal's Annual Report and Annual Information
 Form filed with the Canadian regulatory authorities and Calpine's reports and
 registration statements filed with the Securities and Exchange Commission.
 
 SOURCE  Calpine Corporation