Kestrel Energy Affiliate Announces Proposed Two Well Program In San Joaquin Basin in California

Apr 25, 2001, 01:00 ET from Kestrel Energy, Inc.

    DENVER, April 25 /PRNewswire/ -- Kestrel Energy, Inc. (Nasdaq:   KEST) today
 announced that an affiliate company, Victoria Exploration NL ("Victoria"), is
 expected to commence a two well exploration program in the San Joaquin Basin
 commencing early May.  The wells Eagle 1 and Kingfisher 1 are to be drilled
 back to back with the former expected to start approximately May 2, 2001.
 Kestrel has a 10.8% holding in Victoria.
     Eagle 1 is a horizontal drilling project in Kings County, targeting
 potential recoverable reserves of up to 24 million barrels of oil and 62
 billion cubic feet of gas.  The well is a follow up to the initial 1986
 discovery which had initial flow rates of 223 barrels of oil per day and 0.7
 million cubic feet of gas per day from the target Gatchell sand horizon.
 Victoria will have 25.25% working interest in the Eagle 1 well after payout.
     Kingfisher 1, which will be drilled after Eagle 1, is a multiple target
 structural trap defined by seismic and well control.  The Kingfisher Prospect
 is interpreted from seismic data to have the potential to contain up to 25
 million barrels of oil and 46 billion cubic feet of gas in the target Vedder
 and Domengine sands if oil and gas is present.  Further potential also exists
 in the deeper Cretaceous sand zones, which will also be tested.  Victoria will
 have a 32.5% working interest in the Kingfisher 1 well after payout.
     For further information on these activities one should visit the Victoria
 Petroleum website at www.vicpet.com.au.
 
     Statements made in this press release that are not historical facts may be
 forward looking statements.  Actual results may differ materially from those
 projected in any forward looking statement.  There are a number of important
 factors that could cause actual results to differ materially from those
 anticipated or estimated by any forward looking information.  In addition,
 while the Company has an indirect interest in the wells cited herein at the
 time and in the manner described, various factors, including but not limited
 to actual drilling results, equipment availability or breakage, financial or
 other problems, could change those plans.  A description of the risks and
 uncertainties which are generally attendant to Kestrel Energy and its industry
 and other factors which could affect the Company's financial results are
 included in the Company's report to the Securities and Exchange Commission on
 form 10-K.
 
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SOURCE Kestrel Energy, Inc.
    DENVER, April 25 /PRNewswire/ -- Kestrel Energy, Inc. (Nasdaq:   KEST) today
 announced that an affiliate company, Victoria Exploration NL ("Victoria"), is
 expected to commence a two well exploration program in the San Joaquin Basin
 commencing early May.  The wells Eagle 1 and Kingfisher 1 are to be drilled
 back to back with the former expected to start approximately May 2, 2001.
 Kestrel has a 10.8% holding in Victoria.
     Eagle 1 is a horizontal drilling project in Kings County, targeting
 potential recoverable reserves of up to 24 million barrels of oil and 62
 billion cubic feet of gas.  The well is a follow up to the initial 1986
 discovery which had initial flow rates of 223 barrels of oil per day and 0.7
 million cubic feet of gas per day from the target Gatchell sand horizon.
 Victoria will have 25.25% working interest in the Eagle 1 well after payout.
     Kingfisher 1, which will be drilled after Eagle 1, is a multiple target
 structural trap defined by seismic and well control.  The Kingfisher Prospect
 is interpreted from seismic data to have the potential to contain up to 25
 million barrels of oil and 46 billion cubic feet of gas in the target Vedder
 and Domengine sands if oil and gas is present.  Further potential also exists
 in the deeper Cretaceous sand zones, which will also be tested.  Victoria will
 have a 32.5% working interest in the Kingfisher 1 well after payout.
     For further information on these activities one should visit the Victoria
 Petroleum website at www.vicpet.com.au.
 
     Statements made in this press release that are not historical facts may be
 forward looking statements.  Actual results may differ materially from those
 projected in any forward looking statement.  There are a number of important
 factors that could cause actual results to differ materially from those
 anticipated or estimated by any forward looking information.  In addition,
 while the Company has an indirect interest in the wells cited herein at the
 time and in the manner described, various factors, including but not limited
 to actual drilling results, equipment availability or breakage, financial or
 other problems, could change those plans.  A description of the risks and
 uncertainties which are generally attendant to Kestrel Energy and its industry
 and other factors which could affect the Company's financial results are
 included in the Company's report to the Securities and Exchange Commission on
 form 10-K.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X82628022
 
 SOURCE  Kestrel Energy, Inc.