Wilshire Oil Co. said it has signed an agreement to participate with one of the largest (non integrated) oil and natural gas companies in the United States in a major drilling program in Canada. Wilshire said it anticipates that the company’s overall gas reserves may increase by as much as 31% by this year-end as a result of this program. Under the agreement, Wilshire will have a 30% interest in a total of 380 wells, in the Medicine Hat-Hilda Area of southeastern Alberta including the 210 new gas wells to be drilled. The new wells are expected to triple the daily gas production from the unit by 2003. The project is expected to commence in the third quarter of 2002 and be completed by year-end. Cash flow from the new production will commence in the fourth quarter with full benefits realized by Wilshire from the increased production in early 2003.

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