WATT Energy LP II said Friday that it has been successful with two Caroline, AB natural gas projects. The Toronto-based investment management and corporate finance firm said testing has confirmed natural gas zones with a multi-zone completion program underway.

The company noted that nearby pipeline access should permit late summer tie-in and subsequent production. WATT Energy said it intends to continue the balance of the planned drilling program throughout 2003 and into early 2004.

“Global political uncertainty has been reduced with the completion of the Iraq war,” said James S. Hershaw, CEO of WATT Energy. “The economics of the North American natural gas business are now being driven by a fundamental supply and demand imbalance. The recent rise in natural gas prices appears to be sustained by five-year seasonal lows in natural gas storage inventories. The natural gas focus of WATT Energy should prove to be a successful strategy for our investors.”

In other company news, Watt Energy said the Dec. 31, 2002 yearend financial results have been released and reflect the initial C$3,429,000 invested in the partnership. WATT Energy is a natural gas-focused flow-through investment that is available by prospectus offering. The final close is planned for May 30.

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