Release: Seram's Oseil production operations update

Kalrez Energy Limited is a 2.5 percent shareholder in the Seram Joint Venture that operates the Oseil oilfield. The major shareholder, and Operator of the JV, is KUFPEC (Indonesia) Limited with 97.5 percent.

Production from the Oseil oilfield commenced on December 30th 2002, with processing taking glace through a Temporary Production System (?TPS?) nominally rated to approximately 12,000 barrels per day throughput.

The TPS facility is a temporary process facility to be utilized until the permanent facilities currently being installed are completed. Current expectations are that the permanent facilities will be available during April 2003.

REPORTING PERIOD	From midnight 2nd March 2003 To midnight 9th March 2003
Oil produced for the period	66,941 barrels of oil
Average daily production for the period	9,563 barrels of oil
Cumulative oil produced	590,838 barrels of oil
Oil sold during the period	296,557 barrels of oil
Oil in stock	52,982 barrels of oil

COMMENTS

All three wells Oseil #1, Oseil #2 and Oseil #4 on production. Current operations are continuing production through the TPS system.

Your faithfully,

Guiseppe (Joe) Mercorella; CHAIRMAN KALREZ ENERGY LTD