September 10, 1997 Company Press Release Amalgamated Explorations To Participate In Continued Development Of Cave Gulch Field Reserves September 10, 1997 - Amalgamated Explorations Inc. (OTC/BB:AXPL) Wednesday announced its continued development of the Cave Gulch Field. As announced on Aug. 4, 1997, the U.S. Department of Interior's Bureau of Land Management has issued the Record of Decision for the Environmental Impact Study of the Cave Gulch Area, allowing for resumption of development of the area. Barrett Resources Corp. BRR, as operator of the unit, is currently moving in and rigging up four rigs: two for shallow Ft. Union and Lance development, one to begin the development of the Frontier, Muddy and Lakota, and one 21,000 foot exploratory well to test the Tensleep and Madison Formations. Barrett announced on Aug. 12 that it had successfully completed the lower Cretaceous Third Frontier Sandstone Formation in its Cave Gulch No. 16 Deep Test as a natural gas producer. After 5 days of flow testing, the Third Frontier is producing gas into the sales pipeline at a stabilized rate of 10.2 MMcfd with 2,550 psi flowing tubing pressure on a 24/64 inch choke. Measured reservoir pressure is 13,750 pounds. Barrett's working interest in the well is 85.2 percent. The Third Frontier is 48 gross feet thick and was stimulated with a solvent to remove oil-based mud damage and given a very small gel and bauxite frac job. Earlier testing of the naturally fractured but tighter Muddy Sandstone Formation resulted in an initial unstimulated flow rate of 21.7 MMcfd which declined to 6 MMcfd over the course of seven days of testing. Pressure tests combined with extensive flow testing indicate that the Muddy Formation should sustain a natural flow rate of approximately 3 to 4 MMcfd into the pipeline. Prior to moving uphole to production test the Third Frontier, a bridge plug was set above the Muddy. Importantly, several additional zones remain untested behind pipe, and will be added to the production stream once the Third Frontier's pressure declines sufficiently to reach an acceptable safety level. The 50-foot thick First Frontier Sandstone zone tested a significant gas flow while drilling and appears on logs to potentially be a much better zone than the productive Third Frontier described above. The Fourth and Fifth Frontier Sandstones also remain untested behind pipe and appear from logs to be productive. These Muddy, First, Fourth and Fifth Frontier zones will each be added to the production stream once the Third Frontier's pressure declines sufficiently. Previously reported attempts to stimulate and complete the deeper Lakota Sandstone Formation were unsuccessful due to mechanical problems combined with possible formation damage from oil-based mud invasion during drilling. This zone will be retested in the first development well, being the Cave Gulch No. 1-29 Lak Well, which is scheduled to spud one mile north of the Cave Gulch No. 16 well on Sept. 5, 1997. Amalgamated Explorations is participating in the drilling of the No. 1-29 development well. Paul M. Rady, president of Barrett Resources Corp., stated: ``We are extremely pleased with these latest production test results at the Cave Gulch No. 16 well. The testing took longer than we planned, due to the depths and pressures of the reservoirs. However the results reaffirm our continued belief that the Deep Cave Gulch structure holds potentially very significant unbooked gas reserves for our company. We have a number of offset locations planned which we will begin drilling within the month.'' Barrett Resources is building locations for two deep test wells that will include lease rights held by Amalgamated. The Cave Gulch No. 1-29 Lak Well is projected to an 18,000 foot depth to develop the Frontier, Muddy, Lakota, Morrison and Sundance formations. The CGF No. 3-29 MAD proposed well is scheduled to develop the Madison formation to an estimated 21,000 foot depth. Amalgamated is prepared to participate in these development wells in proportion to its leasehold interests. Amalgamated also expects four 10,000 foot Fort Union/Lance wells will be drilled, now that the Aug. 4, 1997 BLM decision has been made on development procedures in the Cave Gulch area. Three of the wells will be operated by Prima Oil and Gas with Amalgamated as a 10 percent non-operator, and the fourth well with Chevron being the operator and Amalgamated holding a 5 percent working interest. Amalgamated is awaiting industry participants scheduling the drilling of the wells. These wells will start the development of the estimated 42 billion cubic feet of gas attributed to Amalgamated's share of the underlying proven reserves in the Cave Gulch area -- an estimated value to Amalgamated of $42 million assuming $1 per thousand cubic feet gas price. Amalgamated Explorations is a Denver-based independent natural gas, oil and mineral exploration and production company. Amalgamated's properties are located primarily in the Rocky Mountain region of Wyoming, Nevada, Montana, Colorado and Utah. MSP Technologies Inc., a subsidary of Amalgamated Explorations, offers Electrotelluric® surveying. Electrotelluric® surveys can detect oil and gas deposits at depth, within minutes. Amalgamated Explorations, Inc. - 1-303-629-5115