Entek Energy Limited has agreed to partner with a highly experienced, well funded and successful US operator to jointly explore and develop a significant portion of the company's extensive Niobrara Oil Resource Project. Under the agreement, which is subject to legal due diligence: Entek will assign a 35% working interest over most of its Sandwash Basin leases, and operatorship thereof, thereby retaining a 20% working interest. The Agreement EXCLUDES the highly prospective Focus Ranch Unit, where Entek will retain its full current working interest and operatorship and where exploration will be pursued independently and irrespective of the new partner's program.

The company is confident that access issues related to the Focus Ranch Unit will be resolved in the near term to facilitate forward program in that area.