K2 Announces Plans to Commence Drilling Operations

Apr 27, 2001, 01:00 ET from K2 Energy Corp.

    CALGARY, April 27 /PRNewswire/ - K2 Energy Corp. (TSE: KTO) is pleased to
 announce that it has contracted a drill rig to commence its current year's
 drilling program on its oil and gas acreage on the Blackfeet Indian
 Reservation in northern Montana. The Corporation expects to spud the first
 well in early May and plans to drill up to 24 wells in the second and third
 quarter of this year.
     K2 also advises that its previously announced private placement financing
 with Ostrich Capital Partners, Inc. ("OCP"), a Delaware Corporation, will not
 proceed due to OCP's inability to resolve certain taxation and regulatory
 issues on a timely basis. As a result, K2 has been paid a break-up fee of
 approximately CDN $4.6 million. No securities or other consideration will be
 issued by K2 in connection with the settlement. K2 currently has 40,315,906
 common shares outstanding.
     The funds will be added to the Company's working capital and used for its
 ongoing oil and gas activities on the Blackfeet Indian Reservation, including
 the above drill program.
     K2 is an oil and gas exploration and production company with a unique
 focus on the Blackfeet Indian Reservation. The Company holds a 100% interest
 in approximately 340,000 acres of exploration lands located along the Rocky
 Mountain Foothills with prime prospects for both oil and natural gas. K2 also
 holds a 100% interest in approximately 20,000 of oil development acreage on
 the eastern edge of the Reservation.
     K2 Energy Corp.'s common shares trade on the Toronto Stock Exchange under
 the symbol "KTO".
 
 

SOURCE K2 Energy Corp.
    CALGARY, April 27 /PRNewswire/ - K2 Energy Corp. (TSE: KTO) is pleased to
 announce that it has contracted a drill rig to commence its current year's
 drilling program on its oil and gas acreage on the Blackfeet Indian
 Reservation in northern Montana. The Corporation expects to spud the first
 well in early May and plans to drill up to 24 wells in the second and third
 quarter of this year.
     K2 also advises that its previously announced private placement financing
 with Ostrich Capital Partners, Inc. ("OCP"), a Delaware Corporation, will not
 proceed due to OCP's inability to resolve certain taxation and regulatory
 issues on a timely basis. As a result, K2 has been paid a break-up fee of
 approximately CDN $4.6 million. No securities or other consideration will be
 issued by K2 in connection with the settlement. K2 currently has 40,315,906
 common shares outstanding.
     The funds will be added to the Company's working capital and used for its
 ongoing oil and gas activities on the Blackfeet Indian Reservation, including
 the above drill program.
     K2 is an oil and gas exploration and production company with a unique
 focus on the Blackfeet Indian Reservation. The Company holds a 100% interest
 in approximately 340,000 acres of exploration lands located along the Rocky
 Mountain Foothills with prime prospects for both oil and natural gas. K2 also
 holds a 100% interest in approximately 20,000 of oil development acreage on
 the eastern edge of the Reservation.
     K2 Energy Corp.'s common shares trade on the Toronto Stock Exchange under
 the symbol "KTO".
 
 SOURCE K2 Energy Corp.